SNP to push through competitive challenges
New approaches attempted for growth
With a tougher business environment as consumers trend towards digital, SETlisted S&P Syndicate Plc (SNP), the operator of S&P bakery and restaurant chain, is trying new approaches to keep its business growing.
Vitoon Sila-On, the company’s president for operations and human resources, said the company is set to invest more in technology at its production facilities and for services to make customers’ lives more convenient. A new restaurant format is under consideration, while the company is branching out to cover food service solutions with access to more customers via various channels.
SNP plans to allocate about 100 million baht this year to build a new smart distribution centre and warehouse on 10,000 square metres space in Bang Phli, Samut Prakan. The construction of its new distribution centre is scheduled to start soon, with operations starting next year.
High technology at this centre will enable the company to more efficiently manage operation costs and transport, he said.
The company plans to allocate another 100 million baht to gradually install new machines at its factory to expand the production capacity of its frozen food, meat processing products and jelly products by 20% to 800 tonnes to serve future growth, both domestically and internationally.
SNP plans to allocate another 100 million baht to open 30 new S&P restaurants this year and renovate its existing restaurant brands, including Vanilla, to adapt to younger consumers.
“The restaurant business is difficult because new players continue to enter the market,” he said. “The number of restaurants at shopping complexes have doubled over the past few years.”
Moreover, Mr Vitoon said the company has been confronted with many indirect competitors such as convenience stores, and street noodle vendors that provide delivery services.
“We are putting more focus on providing our customers with superb services and premium products to differentiate ourselves,” he said. “Digital technology will help us reach a wider range of customers.”
SNP reported sales grew only 2% last year to 8 billion baht.
Despite tougher competition in the restaurant market, the company targets to grow sales by 10% this year to 8.8 billion baht. Food service is one of the areas the company aims to focus on this year to respond to the continuously growing tourism industry and the growth of eating out in urban areas.
“The food service business has grown rapidly in the past few years, resulting in more demand for raw food materials and ready-to-eat meals. We’ve adjusted our strategy to become a provider of food services and solutions, focusing on developing food for food service companies,” Mr Vitoon said.
The company expects sales from food services including frozen food and dessert and meat processing products and jelly to grow by 15% to 950 million baht this year, he said.
The company will also develop new menus to respond to health-conscious customers, including low-sugar jelly and organic riceberry.
In addition, Mr Vitoon said that the company aims to expand its export market this year.
It plans to open more S&P restaurants in Cambodia this year, bringing a total number of its restaurants in Cambodia to five by the end of this year from four.
“Our restaurants have received a warm welcome from customers over there. We will use this brand to expand in Cambodia, Laos, Myanmar and the Vietnam market because people in those countries are familiar with our brand,” Mr Vitoon said.
The company expects to have a total of 50 S&P restaurants across Cambodia, Laos, Myanmar and Vietnam over the next five years, he said.
The company operates 10 restaurants outside Asean.