The trademark owner of KFC has said it remains committed to expanding in Thailand this year and will invest 1 billion baht, despite the ongoing pandemic causing headaches for quick-service restaurants.
Patra Patrasuwan, Yum Restaurants International (Thailand) Co's head of brand communication, said its spending budget remains on par with last year, although the business experienced a hiccup in July when almost 200 KFC branches were ordered to be temporarily closed.
She said the continued spending is because the company is still confident its Thai eateries have bright prospects.
Under the spending plan, the company will open 75 new KFC restaurants this year, compared to 72 new branches last year. As of July this year, 37 KFC restaurants have already opened across the country and more than 38 restaurants will be opened in the last months of this year, bringing the total to 920 restaurants by the end of 2021. All branches are now fully digitalised.
"KFC's business had a huge impact from the government's rigid lockdown measures in 29 strictly-controlled dark red provinces in July, but the situation has gradually improved this month, helped by our various business models and channels," Ms Patra said.
Digital channels like websites and apps continue to grow, boosting the sales contribution of the digital channel to 50% of total sales in August this year, up from 20% in the first quarter of this year.
Earlier this year, the dine-in business contributed 30% of the company's sales, with takeaway making up 40% and delivery 30%.
Prior to the Covid-19 outbreaks, dine-in and takeaway each contributed 40% of the company's sales, with delivery representing 20%.
"Although the overall quick-service restaurant became sluggish because of the prolonged Covid-19 outbreaks, demand for the fried chicken segment, worth about 14.7 billion baht, remains on the rise," said Ms Patra. "With over a year of Covid-19 outbreaks, both consumers and the company have learned to adjust themselves to get acquainted with digital approaches and orders."
According to Ms Patra, more individual menus will be launched in the second half of this year, adapting to consumers' eating habits amid the pandemic.
Waewkanee Assoratgoon, the company's general manager, said the business has also started serving plant-based fried chicken at two KFC restaurants at KFC green stores in the Saengsom building and Wanachai Depot in Chachoengsao. Orders are also made available through other KFC sales channels. The product price range is between 49-179 baht.
Its new plant-based fried chicken menus aim to attract new generations who have become more conscientious about their health and sustainable consumption.
"Demand for plant-based diets has been on the rise in several countries including Thailand, posing challenges to food companies including KFC in presenting alternative plant-based menus for Thai consumers," Ms Waewkanee said.