Bangkok--16 Nov--KASIKORNBANK
KASIKORNBANK (KBank) is partnering with PTT to provide support to those interested in a Hua Seng Hong Dim Sum franchise at PTT service stations or elsewhere amid the popularity of fast-service restaurants and a rising 'eat out' trend. Borrowers are not required to have had any business experience and loans will be collateral-free.
Mr. Pipavat Bhadranavik, KBank First Senior Vice President, has revealed that there is now cooperation between KBank and PTT PCL. to provide K-SME Franchise Credit loans for those seeking to buy a Hua Seng Hong Dim Sum franchise. In this program, two types of long-term loans will be available, i.e.,collateralized loans for up to 70 percent of the franchise investment value, and up to six years to pay on it, plus, collateral-free loans, also for up to 70 percent of investment value, with up to five years to pay on it and a maximum TCG loan guarantee of THB3 million.
Franchise businesses have a promising growth outlook, especially restaurants with a recognized brand that respond to today's lifestyles. Restaurant franchises are therefore very popular among investors, as evidenced by the total number of restaurant franchises bought in 2017, numbering 128, which amounts to 23.15 percent of all franchise businesses bought so far, this year. Most importantly, their growth has beaten others. Opportunities are there for investors wanting to own a low-risk business, but having good access to financial assistance.
Mr. Pipavat added that market turnover in restaurant business overall here is expected to total THB390-397 billion in 2017, an increase of 2-4 percent over 2016. Of this, THB119-122 billion will go to restaurant chains, and THB271-275 billion to other restaurants, mostly SME establishments that include quick service restaurants (QSR) that have enjoyed steady growth and have had market turnover of THB44 billion so far, this year.
Hua Seng Hong Dim Sum is a QSR that has shown brisk sales amid fast-paced urban life. These days, more and more people are dining at QSRs, and demand for food delivery service to homes and offices is on the rise. This Chinese cuisine restaurant has thus seen increasing customer traffic. KBank is therefore quite confident toward their further success and is ready to provide financial facilities via K-SME Franchise Credit. Moreover, KBank is prepared to comprehensively lend support to SME entrepreneurs in general, their trade partners and PTT, to include financial support for the construction and remodeling of service stations, fuel purchases and franchise stores.
Mr. Suchat Ramarch, PTT Executive Vice President, Retail Marketing, has said that their company is eyeing restaurant businesses since food is one of the four basic necessities and the new generation of Thais like dining out. Restaurant business is thus promising. So far, PTT has seen lucrative business with its franchise deals with Cafe Amazon, Daddy Dough and Texas Chicken. Adding Hua Seng Hong Dim Sum helps support locally-branded restaurants. Hua Seng Hong Dim Sum is a brand of Hua Seng Hong – a well-known Chinese restaurant – that has been in business for over 40 years. They offer a wide selection of 'Dim Sum' – a popular menu item worldwide – as well as pies and other Chinese pastries, plus a-la-carte meals and herbal drinks. Given the good quality, tasty Dim Sum foods offered by Hua Seng Hong, they are a dining choice much sought-after by families, thus securing a valuable customer base for these restaurants.
Mr. Suchat added that the cooperation between PTT and Hua Seng Hong on Hua Seng Hong Dim Sum franchises demonstrates KBank's and PTT's intent to help Chinese cuisine become more accessible to the populace as QSRs that respond well to lifestyles these days. PTT, being the grantor of master franchise, has worked with Hua Seng Hong Dim Sum to expand franchise branches into petrol stations, office buildings, hospitals and department stores, by granting new franchises to more investors. The program has received positive feedback from many investors who have started such franchises. PTT is ready to support them and their business partners, and, given the support of KBank as a major business partner, this helps aspiring franchisees to confidently realize their business ambition. It is expected that over 50 branches will have been opened by the end of 2017. PTT plans to increase the number of these franchisees to 400 over the next 10 years. Interested persons can obtain more detailed information from PTT PCL. by contacting them at: Tel. 02-537 3030.
Mr. Pipavat went on to say that the recipe for success in restaurant business includes 'good flavor', location and service, plus timely response to changing customer behavior, new lifestyles and changing needs. Operators should stress their selling points to make their restaurant more desirable, such as by offering home delivery service for greater convenience. Such added value services ensure sustainable growth for the business over the long run.
At present, KBank's total outstanding loans to franchisees ratio is THB2.39 billion, up 7.3 percent over the 2016 yearend. This shows that success is possible when having the essential ingredients of franchisor cooperation with potential franchisees plus standardized business management. These factors help entrepreneurs toward having a good chance to gain success because customers already accept the brand, having likely used it before. Thus, franchise businesses can generate income quickly and gain good profit.