After halting the expansion of large-scale restaurants for two years, Zen Corporation Plc has resumed its investments in AKA yakiniku and Zen hybrid buffet eateries.
Boonyong Tansakul, the company's chief executive, said the overall dining restaurant business at retail complexes has been active since April, particularly after the country's full reopening and less severe Covid-19 outbreaks.
Over the last two years, the firm promoted Khiang street food and Tummour in stand-alone locations at shophouses, petrol stations and cloud kitchens.
However, as a result of the reopening and pick-up in demand, the company has shifted its focus to opening more large-scale AKA and Zen restaurants this year.
"The overall situation for dining restaurants has improved since April when all rigid Covid-19 containment measures were cancelled. So far, sales via the delivery channel at petrol stations and shophouses are stable while sales via our restaurants at shopping complexes and office buildings continue to see rising momentum,'' Mr Boonyong said.
He added that customer traffic at the company's restaurants in retail complexes has returned to more than 95% of pre-pandemic levels. This year and 2023 are therefore considered to be a suitable time to resume active expansion of AKA and Zen.
According to Mr Boonyong, the company will open 12 new AKA yakiniku restaurants this year, bringing the total number of branches to 40 at the end of 2022.
It opened three AKA restaurants in the first half of this year in Chanthaburi, Big C Nakhon Pathom, and The Mall Nakhon Ratchasima. More AKA restaurants will be opened in the second half of this year, including outlets in Ayutthaya and Nakhon Pathom's Salaya. The new AKA shabu restaurant concept will also open for the first time at Central Pinklao next month.
"We paused opening new AKA yakiniku restaurants for two years due to the pandemic," Mr Boonyong said. "Buffet restaurants don't fit with the delivery channel, meaning a huge drop in sales at AKA outlets during 2020 and 2021. However, our dining restaurants have now resumed growth again. We are confident that dining restaurants will become vigorous again in the second half of this year."
According to Mr Boonyong, the firm is also scheduled to open 10 new AKA restaurants next year, bringing the total number to 50 branches in 2023. Sales of AKA are expected to increase from 500-600 million baht in 2021 to reach 750-800 million baht in 2022 and one billion baht in 2023.
The company also plans to open four new Zen restaurants this year. The first branch recently opened at the Robinson department store in Chachoengsao, and three more will be launched in the second half of this year. The total number of Zen restaurants is expected to reach 48 by the end of this year, with 5-10 new restaurants under the Zen brand scheduled to be added in 2023.
Zen Corp expects its overall sales to top 3 billion baht this year, up from 2.25 billion baht in 2021.
