In response to an anticipated decrease of Chinese visitors to Thailand, Burger King (Thailand) Co is adapting its business strategy by adding more non-burger products to appeal to a wider range of customers and generate additional revenue.
According to general manager Tanawat Damnernthong, the company will emphasise opening new restaurants in upcountry locations nationwide over the next five months. This expansion will include areas such as Phuket and Pattaya, with the goal of attracting individuals who have not previously consumed burger products.
The company has already opened four new branches in Bangkok and other tourist destinations this year and it is scheduled to open six new stores during the remaining five months of the year.
The expansion of new restaurants in Bangkok next year will also be frozen and the company will instead concentrate on up-country locations.
Burger King operates its restaurants in 20 provinces at present, highlighting substantial untapped potential for growth. This expansion is particularly promising in provinces such as Ayutthaya, Phitsanulok and Nakhon Sawan, where there is less familiarity with the Burger King brand.
"We have to offer value-for-money products through promotional deals to entice these potential customers," Mr Tanawat said.
Furthermore, Mr Tanawat said the company aims to cater to a diverse range of customer preferences by offering a variety of local menu options. This approach seeks to accommodate the needs of customers with varying tastes who visit Burger King outlets.
In a recent development, the company introduced "Hatyai Chicken King", featuring Thai Southern-style fried chicken, as a new permanent menu item.
This addition is available across all Burger King locations nationwide, excluding airport outlets and tourism-heavy provinces. Based on its in-house research, Hatyai fried chicken is particularly popular among local fried-chicken enthusiasts.
"Thailand's fried chicken market is estimated to be worth 25 billion baht, 2-3 times larger than the burger market," he said.
Mr Tanawat said that during his recent trip to Shanghai, China, he noticed that the country has a sluggish property market.
"Therefore, the new menu items will help us build growth without relying on Chinese tourists. Both of the two new products launched to the market recently set new sales records in April and July. We believe our Hatyai Chicken King will take Burger King's sales to another new high in the fourth quarter of this year," said Mr Tanawat.
According to Mr Tanawat, Burger King's regular core customers are aged between 30-39, with a relatively high level of income (A level). The launch of Hatyai Chicken King will broaden its customer base to those with a moderate level of income (B level).
Furthermore, the introduction of these new products aligns with the firm's overarching strategy to enhance consumers' affinity with the Burger King brand. The firm is also exploring the prospect of introducing a Burger King Mala menu in the future.
The new menu items are aimed at elevating the contribution of non-burger products to 10% of overall sales this year from 3% over the past few years, Mr Tanawat said.