Zen Corporation Plc, the operator of restaurant chains such as Zen, AKA and Tummour, is expanding its business to ready-to-eat meals, as a part of efforts to strengthen its business over the long term.
Siruwat Chatchawan, the company's chief commercial officer for Thai brands, said the firm has partnered with Charoen Pokphand Foods (CPF), the SET-listed flagship of food and agribusiness conglomerate CP Group, to develop a new ready-to-eat meal called "CP-Tummour Mae Noi Traditional Chicken Rib". The product was launched last month and is now available at over 13,000 7-Eleven convenience stores.
The CP-Tummour Mae Noi Traditional Chicken Rib meal is based on one of Tummour's top 10 most popular menu items, transformed into a convenient ready-to-eat option for consumers at 7-Eleven stores. CPF is responsible for the production, Tummour is handling the marketing and communication, and 7-Eleven is taking care of the distribution.
"This new ready-to-eat meal has received positive feedback from customers and we hope that this collaboration will allow Tummour's customers to enjoy their meals at any time of the day and attract a broader customer base," Mr Siruwat said.
Tummour currently operates 101 restaurants across 50 provinces and in four countries -- Malaysia, Myanmar, Laos and Cambodia.
Vasna Sanguansat, an advisor to the executive officer of CP All Plc, said the CP-Tummour Mae Noi Traditional Chicken Rib meal is priced at 39 baht.
In addition to the CP-Tummour Mae Noi Traditional Chicken Rib, Zen and CPF are planning to develop 2-3 other highlighted menu items from Tummour restaurants as ready-to-eat meals to be sold in 7-Eleven stores later this year.
Mr Siruwat said the ready-to-eat food category presents a significant growth opportunity as it caters to the needs of busy consumers who seek convenience in their daily lives.
"Our restaurants were temporarily closed during the pandemic, leading us to learn that our food business could be more sustainable if we were able to provide food around-the-clock and make the products more accessible to households," Mr Siruwat.
According to Krungsri Research, the ready-to-eat meal market in Thailand is estimated to be worth 44 billion baht. Of this total, 26 billion baht belongs to dried and shelf-stable ready-to-eat meals, while 18 billion baht is for chilled ready-to-eat meals.
Mr Siruwat said this year Zen plans to open a total of 50 restaurants across all its food brands. Around 90% of these new branches will be opened through franchise partnerships, while the remainder would be owned and operated by the firm. In the first five months of this year, the firm has already opened 4-5 new restaurants.
"Our restaurant business abroad has experienced a rebound of 70-80% in the first five months of this year. However, the situation in Thailand is yet to rebound much due to economic challenges and increased food production costs. Consequently, we and our franchisees have right now decided to hold off on our investments, taking into account the uncertain political situation, and agreed to resume expansion in the second half," Mr Siruwat said.