Neo Suki Group has set an aggressive expansion plan to double the size of its food and logistics businesses to 1 billion baht over the next five years.
Managing director Natthaphon Kubpiyajanya said the company plans to allocate 289 million baht to expand its food and logistics businesses over the next five years.
Of the total, 100 million baht will be used to open 10 new Neo Suki restaurants, 38.5 million for 15 new restaurants under the Choonwu brand and another 100 million for building a factory in either Bang Bua Thong or Salaya.
Once the new factory is completed, the group will relocate its production lines from its existing factory on Rama III Road over the next three years.
For logistics, some 50 million baht will be used to upgrade the warehouse and IT system.
The first Choonwu restaurant will open at TTN Avenue community mall in the Nang Linchi area of Bangkok next month.
"We will expand our food business more aggressively this year," Mr Natthaphon said. "Prior to this plan, we opened one Neo Suki branch every two years. Now we will open two Neo Suki branches a year, bringing the total to 29 by 2022."
The group completed the rebranding of Neo Suki two weeks ago. Its logo has been modernised to appeal to families and workers. The first branch to be renovated is at INT Intersect community mall on Rama III Road.
The group plans to list its food business on the Market for Alternative Investment in the next five years to raise 600-700 million baht to serve future expansion.
But the group will postpone its overseas expansion for a few years as it builds a strong local foothold. It plans to own its overseas branches, unlike the franchising system used before.
Neo Suki Thai Restaurants Co, the group's food subsidiary, operates Neo Suki and Mr Kung Fu shabu, while Neo Siam Logistics handles logistics service.
Last year the group's total sales were 400 million baht, and the aim is to reach 1 billion baht in five years, with 600 million from Neo Suki and 400 million from logistics and Mr Kung Fu shabu.
The group started in the logistics business 18 years ago before branching out into suki restaurants.
Neo Siam will extend its logistics service from the North to the Northeast and the South.