New sukiyaki franchises delayed by virus spread
The spread of the coronavirus has prompted Coca Holding International, a pioneer of sukiyaki restaurants in Thailand, to delay investment expansions at home and abroad.
According to Natalie Phanphensophon, the company’s chief operating officer, the company has been hit hard by the outbreak, with sales in March likely to fall by 40-50%.
Some 75% of the company’s sales come from dining in and the remaining 25% is from delivery services.
“We don’t know how long the pandemic will last, so we decided to delay the opening of 15 new restaurants in Thailand and overseas this year,” said Ms Natalie.
Of the 15 new branches, 11 were slated to open in foreign countries, including the Philippines, Malaysia, China and Singapore.
The other four branches were planned for Mango Tree Grab & Go and the newly launched Khao Moh Mai brands. The latter is a new Thai fast food format under Coca group. The first branch of Khao Moh Mai just opened at the PTT petrol station on Bang NaTrat Road.
The company earlier planned to open three Khao Moh Mai branches this year.
“We estimate we will lose tens of millions of baht this year because of the coronavirus pandemic,” she said.
“Any expansion plans will be revised in the second half of this year, once the virus crisis eases.”
Ms Natalie said Khao Moh Mai uses chemical-free rice and targets travellers.
Coca Group has 70 restaurants under various brands including Coca Suki, Mango Tree, Mango Tree Cafe, Mango Tree Thai Eateries and Mango Tree Grab & Go.
Of the 70 restaurants, 15 are Coca Suki, Mango Tree and Mango Tree Grab & Go branches that are operated in Thailand. The remaining 55 branches under various brands are operated in 14 countries by franchisees.
“Our businesses are suffering right now, be they at home or abroad, such as in Malaysia and the Philippines, where lockdown measures were declared,” she said.
“Fortunately, we kicked off our delivery service in Thailand early last year.”
With restaurants ordered to close since Sunday, the company is putting more effort into the delivery channel, which contributed 25% of total sales last year.
In pursuing these strategies, the company expects sales this year to grow by 5% from last year’s 570 million baht, said Ms Natalie.