As it prepares to celebrate its 20th anniversary next year, Black Canyon (Thailand) is expanding its brand and playing a more significant role in Asia.
Pravit: Passion for the cafe´ business
Founder Pravit Chitnarapong has already made his cafe{aac} and restaurant chain a powerful brand in Thailand.
Starting the business from scratch, he now has 240 Black Canyon coffee and restaurant outlets in the domestic market and 45 elsewhere in Asia.
Black Canyon wants to grab opportunities from the upcoming Asean Economic Community (AEC), which will fully kick off in 2015.
It opened its first restaurant in Singapore eight years ago.
Now its restaurants are also available in Malaysia, the Philippines, Indonesia, Laos, Cambodia, Myanmar and Dubai, and all branches are franchises.
But starting next year, the company will open outlets through new channels to make its brand easier to access for a wider customer group.
It is in talks with PTT, Thailand's national petrol conglomerate, to open Black Canyon outlets at PTT petrol stations in Laos, Cambodia and the Philippines.
It also plans to form joint ventures with local partners for joint operation of international outlets from 2015 when Asean becomes a single market, resulting in easier movement of labour and capital across the region.
Opening outlets at petrol stations and partnership schemes will help to speed Black Canyon's international expansion.
Mr Pravit said the tourism industry is expected to boom after the AEC is launched.
However, more foreign investment will enter the region, particularly in the restaurant business, and this could heat up the market.
"Even though competition in the food industry will become more intense in the coming year as new players enter the Asean market, particularly from Japan and South Korea, I believe we have the capability to compete in the market," said Mr Pravit.
Black Canyon recently received an Outstanding Entrepreneurship Award from the non-governmental organisation Enterprise Asia.
Apart from having coffee and restaurants in important tourist spots, Black Canyon outlets feature in international airports in major cities such as Chiang Mai, Chiang Rai, Krabi, Hat Yai, Khon Kaen and Udon Thani.
The company will open a Black Canyon coffee corner in Don Mueang airport by the end of this year or early next year.
Foreign businessmen who have used its airport outlets have shown interest in taking the brand to their countries.
Mr Pravit said at least five more will be added in Indonesia next year, while Myanmar will see two new branches, one each in Nay Pyi Taw and Yangon.
The AEC offers opportunities for Thai brands wanting to expand, but investors have to be cautious about legislative restrictions and rules, he said.
Mr Pravit believes Singapore's high labour costs and space rental fees make it difficult for investors, but the Philippines, Cambodia and Myanmar are emerging markets with potential.
With the limitations of small and medium-sized enterprises in terms of capital, systems and workforce, franchises are the best way of expanding abroad, he said.
But partners should have not only money but also time and a passion for managing the business.
Companies should not consider only a country's size, said Mr Pravit.
"Laos has attractive spending power now after making itself 'the battery of Asia', selling energy to many countries in the region," he said.
Sales of Black Canyon in Thailand are expected to rise by 15% this year from 1 billion baht last year.
The company plans to open 15-20 new branches in Thailand next year, each one requiring an investment of 3-5 million baht.