Bangkok--18 Apr--Chom PR
Food Passion Co Ltd, the operator of famous restaurant brands – "Bar B Q Plaza", "Joom Zap Hut" and "Hot-Star", is geared towards overseas expansion, starting with Cambodia, Laos, Myanmar and Vietnam (CLMV). In this quest, "Bar B Q Plaza" is aimed to be well positioned as a regional brand within 2020. Through the master franchise extended to Express Food Group (EFG), a giant restaurant franchise business operator in Southeast Asia, EFG will be given the exclusive rights under 'Master Franchise' to develop Bar B Q Plaza restaurants in Cambodia. Under the plan is to open 10 restaurants in Cambodia within 2022, after the opening of two in the heart of Phnom Penh this year.
Mrs. Chataya Supanpong, Food Passion Co Ltd.'s Chief Engagement Officer, unveiled; "We're confident in turning "Bar B Q Plaza" into a regional brand, with the plan to open at least 30 restaurants across Southeast Asia particularly CLMV countries and target Bt600 million in sale by 2020. We're prepared to make presence felt in Cambodia this year, through the first franchise platform, We have confidence in Cambodia's potential thanks to the four following characteristics of the market:
Economic potential: Cambodia is an emerging market with continued economic growth: gross domestic product (GDP) averagely hit 7.2% in 2014 (based on International Monetary Fund (IMF)'s data), offering bright business opportunities
Population: The middle-class population's income and purchasing power is on the rise. 13% of professional population in Phnom Penh earned more than US$600 - US$1,000 a month (approximately Bt21,000 - Bt35,000) while 6% earned more than US$1,000 - Us$2,000 a month (approximately Bt35,000-Bt70,000). The purchasing power is high against low cost of living, leading to more consumption particularly on food restaurant business which is one of the industries that has gained economic benefits from a rise of the middle-class population's income and purchasing power in Cambodia. The increasing ratio of new generation consumers has also led to a rapid change in urban lifestyles.
Cultural and cuisine familiarization: Cambodia and Thailand share some social and cultural similarities, particularly enjoy dining in the nice atmosphere, high quality of food and services, and value for money restaurant. Moreover, the Cambodians love grilled food, being a positive factor to Bar B Q Plaza.
Popularity of Thai brands: Thai brands have positively reputation among the Cambodians, as most people consume Thai media and regularly visit Thailand.
"The four positive factors convince us of the success in expanding into Cambodia through our flagship brand like "Bar B Q Plaza". This will be underpinned by our readiness in franchising business. We have the Brand Guidebook introduction and creation, filled with knowledge in operating the "Bar B Q Plaza" brand in a new market. Together with a franchise business support team, the franchise system for "Bar B Q Plaza" is the most complete, shaped by our principle in passing on our experience along with Bar B Q Plaza unique product and service standards to customers across the region. This will ensure a solid and sustainable footprint for Thailand's Bar B Q Plaza brand in the region." Chataya added.
The Asean expansion roadmap is being materialized with the extension of the company's first master franchise to Express Food Group Co., Ltd. (EFG), one of leading franchise restaurant operators in Southeast Asia and the biggest foodservice chain operator in Cambodia. Through the Area Development Franchise contract, EFG will be solely responsible for growing Bar B Q Plaza brand in Cambodia, to ensure efficient expansion in the country. The contract is considered a key strategy in spreading business footprint in Asean.
"In the past years, we had been contacted by various leading company from several countries for Bar B Q Plaza franchise. However, our policy is not biased towards growing business through opening too many restaurants in a short period, as our priority is to ensuring sustainability for Bar B Q Plaza brand in the long term. Therefore, we had been searching for partners who have the same belief, to ensure stable growth for Bar B Q Plaza brand in new territories. As such, we gradually carried out overseas expansion in the past years, focusing on the screening of potential partners under three strategies: Win-Win Strategy for mutual benefits; Partnership Relations Strategy with an aim to establish trusted relationship for sustainable partnership with the franchisee to ensure smooth operations; and Effective Support Strategy that calls for central systematic support to allow efficient, smooth and prompt operations in operating areas. We believe that the three strategies will guarantee continued, stable and sustainable overseas expansion. We are confident that EFG can ensure success in establishing Bar B Q Plaza brand in Cambodia," Chataya said.
"Aside from its experience in operating famous restaurant brands for more than 12 years as well as expertise in franchise restaurant management, EFG and Food Passion have the same belief in human capital development is a key towards providing happiness for people through our meals. It possesses expertise in operating several types of restaurants and understanding in franchise business. It can maintain Bar B Q Plaza standards. Importantly, EFG is a market expert, with deep understanding in the Cambodian market."
Mr. Kevin Whitcraft, Chief Executive Officer of RMA Group which is EFG's parent, added that EFG is one of leading franchise restaurant operator in Southeast Asia with presence in Cambodia, Laos and Myanmar. With international restaurant and beverage franchises, it is operating over 50 outlets in Cambodia. EFG had desired to grow its portfolio with a grill restaurant business, as it is the most popular segment in the self-cooking business in Cambodia.
"Bar B Q Plaza's success in Thailand and overseas as well as the efficient franchise system convinced us in introducing Bar B Q Plaza's best dining experience to Cambodian consumers. " he said.
Cambodia's restaurant industry has shown continued growth. In 2016, the market value was tuned at US$400 million (approximately Bt140 billion) and through a number of 2,000-2,500 restaurants which are registered with the Ministry of Commerce. In Phnom Penh alone, about 1,000 restaurants are located, and the rest spread to major cities like Siem Reap, Preah Sihanouk, Battambang and Kampong Cham. Cambodia's per-capita income increased 10% on average in the past 3 years, particularly among dwellers in Phnom Penh. Meanwhile, Cambodia has witnessed a change in lifestyles, whereby dining out becomes popular among families and young adults, with an average spending per head at US$5 for lunch and US$10 for dinner few times a month.
Under the expansion strategy for Bar B Q Plaza, Whitcraft said the most important strategy is to deliver Bar B Q Plaza's product and service standards established in Thailand to Cambodian consumers. Bar B Q Plaza is one of the most popular brands for Cambodian travelers in Thailand. To achieve that, the franchise manual will be closely followed, along with on-site staff training and quality inspection Food Passion's team. All key ingredients to all Bar B Q Plaza restaurants in Cambodia will be supplied directly by Food Passion's central kitchen, to guarantee service standards and hygienic safety. Bar B Q Plaza will cover key areas in the heart of cities and it will grow along with an effective marketing campaign through the Bar B Q Plaza's Brand Love unique strategy.
"Primarily, we set aside a budget of over Bt150 million to open at least 10 Bar B Q Plaza restaurants within 2022. This year, we plan two restaurants at the heart of Phnom Penh; the first inside mega-project AEON Mall and the second in Toul Kork district," Whitcraft said.
At present, 19 Bar B Q Plaza restaurants are open in 2 countries by joint venture companies; 17 in Malaysia and 2 in Indonesia. The number is planned to rise to 23 at the end of 2017: 18 in Malaysia, 3 in Indonesia and 2 in Cambodia.