Feast your eyes: CRG plans to serve up 100-120 new eateries
Central Restaurants Group (CRG) has set its sights on launching between 100 and 120 new dining establishments this year, in anticipation of the restaurant sector’s broadening scope. The industry’s worth is projected to approach a substantial figure of nearly 500 billion baht by 2024.
Nath Vongphanich, CRG President, anticipates an overall market growth of 5-7% this year, pushing its value to approximately 480 billion baht. Despite this optimistic forecast, CRG acknowledges the potential difficulties faced by the restaurant business, including management issues, escalating energy costs, and the increased prices of raw materials.
In response to consumer demands, several restaurant operators have adopted promotional campaigns and introduced fresh menu options. Last year, the market witnessed the arrival of more than 100,000 new competitors, as reported by online food delivery platform Line Man Wongnai. However, statistics suggest that 65% of these new restaurants will close their doors within three years of operation.
Nath, however, identified some encouraging factors for the Thai restaurant industry this year, including government stimulus policies and tourism promotion.
“The government expects more than 30 million foreign tourists this year, along with a recovery of the export sector, and this will positively drive the industry.”
Despite the significant challenges faced by the restaurant business last year, primarily due to global economic uncertainties, CRG’s sales rose to 14.5 billion baht, marking a 13% increase from 2022. In 2023, the company launched over 140 branches across 21 brands, bringing the total number of branches to a staggering 1,600 nationwide.
This year, CRG plans to stimulate revenue growth by 14% through the expansion of new branches, particularly for high-potential brands within the group like KFC, Auntie Anne’s, Ootoya and Shinkanzen Sushi. The company’s goal is to open between 100 and 120 new branches in 2024, with over 25 branches set for expansion under existing joint venture partners’ brands, said Nath.
“We are also seeking new business partners for joint ventures. The criteria include growth potential, unsaturated business and the passion for competition.”
In 2024, CRG plans to incorporate an additional two to three brands into its ecosystem. The company has announced a capital expenditure of 1-1.2 billion baht for this year, a 300 million baht increase from the previous year.
Furthermore, 6 billion baht has been earmarked for the upcoming five years (2024-28), with the ambitious target of reaching 2,000 restaurants, reported Bangkok Post.
