Nippon Pack readies A&W fast food roll-out in CLMV
Nippon Pack (Thailand) Plc (NPP), the franchise operator of A&W restaurants in Thailand, will branch out its fast food business into Cambodia, Laos, Myanmar and Vietnam (CLMV) this year.
Managing director Suraphong Triamchanchai said the company recently received a franchise licence from A&W Restaurants Inc in the US to operate A&W restaurants in Cambodia, after already having the rights in Thailand, Myanmar and Laos.
It is also seeking franchise rights to expand the chain into Vietnam, expecting to finalise those negotiations soon.
The parents company of A&W has a policy of pushing Thailand as its brand centre in Asean.
NPP, through its subsidiary, NPP Food Incorporation Co, was given a master franchise contract for the A&W fast food chain in Thailand with additional franchise rights in Cambodia, Laos and Myanmar.
The company is confident it will begin its A&W restaurant operations in CLMV this year, with Myanmar being the first destination outside of Thailand.
"Myanmar has high potential as it has a large population, particularly new-generation customers who have high purchasing power. There are only 100 quick service restaurants over there and the number is expected to double next year," said Mr Suraphong.
NPP hopes to have at least 3-4 A&W branches in each CLMV country with potential cities including Yangon, Mandalay, Vientiane, Luang Prabang, Phnom Penh and Siem Reap. They will either be stand-alone outlets or in shopping projects.
In addition, the company will continue to expand its quick service restaurant business in Thailand this year with a budget of 200 million baht. Of the total, about 150 million baht will be spent on developing new businesses, with the rest going toward marketing.
Currently, A&W in Thailand is the world' second largest market among A&W franchisees worldwide in term of sales and branch numbers, after Indonesia.
"We will speed up to open more A&W restaurants in Thailand with the aim of operating over 100 branches by 2019, up from 33 currently," he said.
NPP is now talking with 2-3 food companies to bring their food brands into its portfolio this year to serve different customer groups.
Its total sales are forecast to grow by 50% to 1.3-1.4 billion baht this year. Of the total, about 50% will come from eateries and the rest from packaging.
Last year's food sales were 500 million baht and are projected to increase to 700-800 million this year from new branches and fresh marketing approaches, said Mr Suraphong.