Evolution, Oishi eye region
Evolution Capital Plc and Oishi Group are expanding in Asean this year, cashing in on huge opportunities when the region becomes a single market by the year-end.
Cambodia, Myanmar and Laos are top priority markets for the two major food operators because these countries are tourist destinations and do not have a wide variety of international food brands.
Evolution Capital recently set up a joint venture with CBM Corporation to bring Domino’s Pizza to Cambodia this year, said Sanjay Singh, Evolution Capital’s chief executive.
Pizza Plc was set up with registered capital of US$1.5 million to handle Domino’s Pizza operations over there with five outlets planned by the end of this year. The first one will open in Phnom Penh this month and the others will involve conversion of Pizza World restaurants currently operated by CBM Corporation.
CBM and Evolution will soon form another joint venture to operate Kyochon chicken restaurants. The first Kyochon eatery will be opened in Phnom Penh this April and the total number of branches will reach five to seven over the next three to four years.
Mr Singh said the Myanmar operation would start in 2016, after trade regulations become more clear.
“It’s the right time for us to expand our brands in the Asean market. Consumers are ready to accept new brands, so chances for food and beverage are tremendous,” he said. Sales of Evolution in 2018 are set to hit 3.3 billion baht and the number of outlets is expected to reach 225.
Paisarn Aowstaporn, Oishi’s executive vice-president for food business, said it was negotiating with local partners to set up joint ventures to operate Shabushi restaurants in Cambodia and Laos in the near future.
“We’re interested in Cambodia and Laos because local people have similar dining behaviour to Thais and the food markets are less competitive,” he said.
Oishi will continue to invest about 600700 million baht here to open 50 new local restaurants this year.
It will further expand its frozen market both at home and abroad, aiming to boost sales to 2 billion baht by 2020, up from 400 million baht last year.