Thai restaurant operators are bracing for higher raw material costs this year.
However, Food Selection Group Co Ltd, which operates several Japanese restaurant chains in Thailand, expects minimal impact due to its proactive strategies.
"For Japanese restaurants, raw materials such as salmon have seen price increases over the past couple of years. The price of salmon is now around 40% higher than in 2022," said Supanus Sacharattanakul, chief executive of Food Selection Group.
However, he noted that the company's large-scale purchasing and long-term contracts help stabilise costs, protecting it from sharp price fluctuations.
Furthermore, the industry is expected to experience a more competitive environment, encouraging restaurants to provide exceptional value to diners, Mr Supanus said.
The company's sales reached 2.1 billion baht last year, up from 1.4 billion baht in 2023, representing 50% growth.
The company is aiming to increase sales this year to 2.8 billion baht, said Chanawee Homtoey, Food Selection Group's other chief executive.
Currently, the company operates 71 restaurants across Thailand.
Of these, 57 are Shinkanzen Sushi outlets, whihc are known for offering Japanese cuisine at an affordable price.
The company also runs 12 branches of Nak-La Mookata, best known for its traditional grilled pork, one Nama Japanese seafood & buffet outlet, categorised as a premium Japanese buffet restaurant, and one branch of Katsu Midori Sushi, another sushi chain, Mr Chanawee said.
The company plans to open another 16 restaurant branches this year.
It will open 10 new branches of Nak-La Mookata in Bangkok, as the company sees significant growth potential in the grilled restaurant segment in the capital.
Five more Shinkanzen Sushi restaurants are also in the pipeline, with 1-2 branches likely to be located in Bangkok, with the remainder being based in other provinces.
"We have noticed that sushi restaurants in provincial areas are performing well," Mr Chanawee noted.
The Food Selection Group intends to add 1-2 new branches of Katsu Midori Sushi this year, targeting locations in leading department stores.
The company also targets sales reaching 4-5 billion baht in five years, driven by a growth in sales from existing brands as well as new brands added to its portfolio, said Mr Supanus.
This year, the company plans to invest 200 million baht, with 30 million baht designated for expanding its central kitchen in Pathum Thani.
It also aims to enhance delivery services by considering potential collaborations with delivery platforms, said Mr Supanus.
Last year, Shinkanzen Sushi contributed 75% of the company's total sales, with Nak-La Mookata generating 17%, Nama Japanese Seafood & Buffet accounting for 5%, and Katsu Midori Sushi providing 1%.
This year, the company expects Shinkanzen Sushi to account for 65% of total sales, with Nak-La Mookata generating 20%, Nama Japanese Seafood & Buffet 5%, and Katsu Midori Sushi 10%, Mr Supanus added.