Zen Corporation Plc, the operator of restaurant chains such as Zen, AKA and Tummour, plans to spend 300 million baht to expand its food business this year.
Of the total budget, 200 million baht is earmarked for opening 10-15 new AKA restaurants in new provincial markets, said chief executive Boonyong Tansakul. A portion of this amount would also be used to renovate existing restaurants, he said.
The company also plans to open 5-10 new Laoyuan Isan & Vietnamese-style restaurants this year, bringing the total number of branches to 25-30.
While the number of Tummour Isan restaurants declined to 80 from 120 branches in 2019 due to the pandemic, the company is planning to open 15-20 new outlets this year, mainly via a franchise format, he said.
According to Mr Boonyong, the remaining 100 million baht would be used for marketing activities and information technology (IT).
Due to the high prices of several raw materials and ongoing concerns regarding Covid-19, the company plans to bring in more technology to help manage its business and lower its operating costs.
In 2022, Japanese restaurant brands under Zen Corp, including AKA and On the Table, utilised technology to help manage their business in terms of self-ordering and self-service. The company plans to implement QR payment at all restaurants within the group this year in order to reduce customers' concerns regarding Covid-19 touchpoints.
"In 2023, we are moving ahead with the same investment budget as 2022 despite many economic challenges this year, be it higher interest rates or the continuing rise in prices of raw materials," he said. "We saw a clearer improvement in the country's food industry over the last two months of 2022 and better tourism sentiment after China agreed to allow its residents to travel abroad from Jan 8."
Mr Boonyong said sales generated by the company's restaurants located at popular tourist destinations, which contribute about 30% to the company's overall sales, have now recovered to around 90% of the pre-pandemic level.
Moreover, the government's recently approved "Shop Dee Mee Khuen" tax rebate scheme is expected to stimulate spending on food.
"However, 2023 will remain a tough year for Thailand's restaurant business, worth more than 300 billion baht a year, as many restaurant-related brands, including the Michelin Guide to restaurants, created important local anchors at malls to attract younger customers. This prompted many Thai restaurant brands to exit or offer more premium or private dining targeting high-income customers," he said.
"We believe the industry already passed through the depths of business risk last year, and, hopefully, 2023 will be a good year for the restaurant industry."
Mr Boonyong said that Zen's sales are expected to grow by 30% from 2022 to 4 billion baht this year.
