After a huge decline in sales due to the fresh wave of Covid-19, Food Passion Co, the operator of Bar-B-Q Plaza, has revised its business strategy to survive this year.
Boonyanuch Boonbumrungsub, the company's chief marketing officer, said the company has to closely monitor the situation on a daily basis and adapt its marketing strategies monthly to comply with the situation.
This year, the firm aims to maintain its sales target or slightly improve it compared to last year when it recorded 2.9 billion baht in sales.
"It was the first time in our 34-year history that sales contracted by 20% to 2.9 billion baht,'' she said, referring to the impact of the nationwide lockdown in 2020.
Due to the impact of the second wave, sales in the first quarter of this year were also flat. The company has estimated sales to plummet further by 40% in the second quarter.
"Customers are panicking about the ongoing situation compared to the first and second waves. Despite no rigid lockdown, shoppers have disappeared from some downtown retail complexes as they have started ordering food via delivery services,'' she said.
Prior to Songkran, the number of visitors at its restaurants was 70% of capacity. However, it experienced a decline to 50% after Nonthaburi announced restrictions to curb the virus spread.
With restrictions in Bangkok in place from April 26 to May 9 and the constant high infection rate, customers at restaurant chains in Thailand will likely decline to 30-40%.
To maintain profit this year, the company will cut expenditure in some areas such as its marketing budget.
It will also focus on delivery as it plans to open five new Bar-B-Q restaurants and non-Bar-B-Q brands this year.
The delivery business made up 15% of the company's total sales last year, however, it expects to double sales from that channel to 30% this year.
The company is also developing and testing a new business model which will fit new normal practices.
Moreover, it will diversify via partnerships and extending licensing business.
Currently, Food Passion operates 235 restaurants across the country, including 145 Bar-B-Q Plaza, 20 Joom Zab Hut, 15 RedSun and two Charna outlets.