Central Restaurants Group (CRG), a branch under Central Group, plans to splurge 10 billion baht over the next five years to double its restaurant outlets to 2,000 branches by 2022.
Nath Vongpanich, right, and Piyapong Chitchumnong have an expansion plan that covers both Thailand and overseas markets.
The plan is to use three strategies. They include launching new restaurant brands under its portfolio through acquisitions, franchising and co-investment with small and medium-sized enterprise (SME) restaurant operators to expand its customer base and have a closer partnership with SMEs in terms of technological know-how, location, raw material sourcing and marketing.
The company is also committed to overseas expansion, both in Southeast Asia and Europe, where Central Group has already established business bases.
Mr Nath said the initial step is to expand restaurants, both for its own brand and licensed brands, into Vietnam and Europe.
"CRG is interested Vietnam because Central Group has already established its owns retail business, including Big C Supercenter and Robins Department Store over there," he said.
"Vietnam has about 90-100 million people and consumers there have high purchasing power."
"Although the modern trade and food industry in Vietnam remains smaller than Thailand's, it boasts huge growth potential."
The company also plans to develop a management system and staff to support the expansion.
Central Kitchen will be set up next year to support the company's future growth.
"Last year was the time to turn the bottom line of our 6-7 restaurant brands around and 2018 onward will be a period of aggressive movement," said Mr Nath.
"We will expand into the large restaurant segment innovative models, particularly for cafes, hot pot and papaya salad, which has big market size of 20 billion, 19 billion and 16 billion baht, respectively."
"We aim to become the market leader in Thailand's restaurant chain business within 2022."
Thailand's restaurant industry is worth 400 billion baht, with average growth of 3-5% per year.
Specifically for 2018, CRG plans to spend 2 billion baht to expand business.
Of the total, some 400-500 million baht will be used to renovate existing restaurants as well as open 100 new restaurants, bringing the total number to 1,000 branches this year.
A new KFC format is also in the works, while "Food Heaven", a new restaurant on 300 square metres, will be opened at Tesco Lotus in Bang Yai, offering various Japanese food brands at one place.
Some 200 million baht will be used on IT systems, 500 million baht on marketing budget and the remaining 800 million baht will be allotted to new restaurant brands as well as mergers and acquisitions.
The company is talking with 5-6 SME restaurant chains about joint ventures and expects to close 2-3 deals this year, said Mr Nath.
Piyapong Chitchumnong, CRG's senior vice-president for marketing, said the company will also focus on providing all food brands under one delivery partnership with delivery service operators such as Line Man, Food Panda, Uber Eats and GrabFood.
CRG reported revenues increased by 11% last year to 10.98 billion baht, about 50% of which was from KFC, 18% from Mister Donut and the remaining 32% from others such as Auntie Anne's, Ootoya and Yoshinoya.
The company expects revenue this year to rise by 11% to 12.2 billion baht and will jump to 22 billion baht in 2022.
Of the total, 90% will be from the domestic market and the remaining 10% will stem from oversea operations.