Despite suffering slow growth in recent years, the operator of Zen and Aka Japanese restaurants is committed to doubling investment next year.
Thunyachate: Still keen on Japanese food
According to chief commercial officer Thunyachate Ekvetchavit, Zen Corporation Group remains confident in the potential of Japanese restaurants in Thailand and will raise investment to 450 million baht in 2018.
Of the total budget, 250 million baht will go to opening two or three new restaurants -- possibly at CentralWorld or in Phuket -- and to renovate existing Rama IX, Lat Phrao and Pattaya branches.
The remaining 200 million baht will fund construction of a new central kitchen on Bang Na-Trat Road.
The company operates 43 Zen restaurants nationwide.
"Due to fiercer competition in the Japanese restaurant business, we have adjusted the new Zen restaurant image to become more modern and affordable, with an attractive atmosphere to make customers stay longer at the restaurant and increase the frequency of visits to our restaurants," Mr Thunyachate said.
Spicier dishes suited to Thai palates have been added to the menu, while prices of other items have been slashed 2-3%.
Zen began offering delivery service this year. Delivery's share of sales is just 2-3% now, but the contribution is expected to double in the next several years.
Japanese restaurants experienced slow growth of 1-2% in the past two years amid the country's economic slowdown, Mr Thunyachate said, compared with 15-20% in earlier years.
According to Mr Thunyachate, consumers with lower spending power prefer cooking at home and spend less on eating out.
In the meantime, the entry of new restaurants has continued unabated, resulting in slowing sales.
To stay competitive, restaurants have used various strategies to lure diners. These include price cuts for signature menu items, store renovations to enhance the customer experience and new business channels such as concept stores and delivery.
Thailand has about 2,000 Japanese restaurants, a segment worth an estimated 22 billion baht.