With competition in the Thai restaurant business intensifying, Global Thai Concepts, a subsidiary of Minor Food Group, is exploring more opportunities abroad this year.
Arth Prakhunhungsit, the company's chief operating officer, said the company is expanding its Basil Thai Kitchen business via franchising overseas this year. The move is partially in response to high demand for Thai cuisine in the international market, he said.
Founded six years ago, Global Thai Concepts operates three food brands for Minor Food Group with 69 branches across Asia and Europe. The brands are Basil Thai Kitchen, casual dining for middle to upper-class consumers; ThaiXpress, a quick-service restaurant; and Patara restaurant in London.
Mr Arth said Minor Group's experience in expanding its restaurant franchise for The Pizza Company, The Coffee Club and Swensen's over 15 years as well as its MSC Thai Culinary School will ensure quality standards in the kitchen, preparing chefs to support the company's future expansion.
"Chefs and sauces are two important elements for being successful in a Thai restaurant. We are ready to open our first Basil Thai Kitchen restaurant overseas this year," he said.
The company has registered its food trademark across Asia for 20 years.
Mr Arth said the competition in Thailand's restaurant industry is fierce, with many new food brands entering the market the past few years. Some 25-30% of tenants at malls are restaurants, up from 20% the past few years.
Basil Thai Kitchen is the fourth restaurant under Minor Group to expand via the franchise system this year. The company already signed a contract with investors from Sri Lanka and is working with investors in South Korea, the Philippines and Indonesia.
"We hope to have 250 Basil Thai Kitchen restaurants worldwide in five years," he said.
The company charges franchisees an initial fee of US$25,000, then $10,000 for training and a royalty fee of 5%.
"There is huge room for Basil Thai Kitchens in the Philippines, Indonesia and the Middle East markets. Demand is high as there aren't any big Thai restaurant chains in those areas," Mr Arth said.
Locally, the company plans to increase Basil Thai Kitchen branches to 20 in three years. There are six Basil Thai Kitchen restaurants in Thailand: three in Bangkok, two in Phuket and one in Pattaya.
Each new branch will have space of 180 square metres, requiring an investment of 7 million baht. Each branch creates about 15 new jobs.
In a related development, last month the company opened ThaiXpress restaurants at fresh zones inside Tesco Lotus's Rama IV and Srinakarin branches. They have a counter service format, offering single dishes of basic food such as rice topped with stir-fried pork and basil and fried chicken wings.
The company plans to have 80 ThaiXpress restaurants nationwide by 2023.