Earl Enterprise, the owner of US restaurant chains, wants a Thai master franchisee.
Earl Enterprise Corporation, the owner of restaurant chains from the US, is looking for a master franchisee to expand its food business in the Thai market.
Alex Garland, the company’s managing director for Europe, the Middle East and India, said during a recent visit to Thailand that after establishing a strong foothold in the US, the company is ready to branch out its food business in the international market.
“Asia is a strategic region where we want to explore business opportunities because the market is very dynamic,” Mr Garland said. “There is a big population and a fast-growing young generation who are always excited and open to trying new things. They also have high spending power.”
More people from this region are also travelling to the US and Europe and gaining familiarity with the company’s food brands such as Earl of Sandwich, Planet Hollywood (a theme restaurant) and Buca di Beppo, an Italian restaurant located at theme parks, airports and hotels in the US and Europe.
“In Southeast Asia, Thailand is a strategic country where we are looking to expand, along with the Philippines,” Mr Garland said. “There used to be a Planet Hollywood in downtown Bangkok, and it received a warm welcome from the market, but it closed about 15 years ago after the contract ended. This is the right time for us to re-enter the Thai market.”
Earl Enterprise Corporation has nine food brands in its portfolio and one hotel. The company is looking for a master franchise for only three brands initially: Earl of Sandwich, Buca di Beppo and Planet Hollywood.
The company has over 100 Buca di Beppo locations and operates 31 Earl of Sandwich restaurants and eight Planet Hollywood restaurants.
“The Earl of Sandwich is our priority for expansion,” Mr Garland said. “It is a quick-service restaurant with operations at Disneyland, at US casinos and in locations in France. Thai travellers may be familiar with the Earl of Sandwich from these tourist venues.”
Thailand is attractive for investment because the country has a large population and welcomes millions of foreign tourists every year, he said.
Thailand’s food industry is estimated at 800 billion baht. Of the total, 370 billion baht is made up by street food, with full restaurants comprising 300 billion baht and the remainder taken up by coffee shops, bakeries and quickservice restaurants, Mr Garland said.
“I see huge potential for Thailand’s quick-service restaurants because of rapid urbanisation,” he said.
The company wants to open 20 Earl of Sandwich restaurants and 3-5 Buca di Beppo eateries in Thailand in five years.
“Although Thailand’s economy is a little weak, Thais can invest in international brands because the cost is lower thanks to the strong baht,” Mr Garland said.
Earl of Sandwich branches need 50-700 square metres per store, depending on the location. The company charges about US$200,000 (6.08 million baht) in franchise fees with a 10-year contract.
The franchise fee for Planet Hollywood is about $250,000, while $1.5 million is needed to build a restaurant.
“Though we are a small brand, we are quite successful in the US, Europe and the Middle East because we are different from others,” Mr Garland said. “Earl of Sandwich is a hot, fresh gourmet sandwich with a nice history.”
Thailand will be the second or third country the company expands into if it can find the right partners, he said.
Apart from sandwiches, the company is also interested in exploring opportunities for Buca di Beppo Italian restaurants. Italian is among the top five popular food categories worldwide.
The company is also keen to expand its hotel business in Asean. It expects to open a hotel in Malaysia in 2020 or 2021, Mr Garland said.