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SORKON Projects Double-Digit Total Revenue Growth Driven by QSR Biz, Chooses Chemical-Free Ingredients for Health-Conscious Customers, Enhances Delivery Service
19 January 2017

Foreseeing outstanding QSR business growths propelled by healthy eating trends and home delivery service, SORKON is realigning its business to strengthen the QSR segment to better tap demands from health-conscious consumers, and has adopted policies to use chemical-free ingredients as a selling point and focus on delivery service in order to enhance business potential. It is offering new Thai dishes to attract international customers to “ran saep classic” restaurants, and is remodeling the business of “khao kha mu Yunnan” restaurant chain by franchising it to kiosk operators to enhance access to local communities. It is confident that its QSR segment’s performances will contribute to a double-digit all-company total revenue growth for FY2017.

Mr Charoen Rujirasopon, chief executive of S. Khonkaen Foods Plc, or SORKON, Thailand’s major producer and supplier of processed meat products, revealed that quick service restaurant (or QSR) business in Thailand is forecasted to experience in 2017 continued impressive growths due to a growing economy, consumer’s greater confidence and purchasing power and more hectic lifestyle which are leading to growing popularity of several QSR brands and home or office delivery service, all of which contribute to the great potential for QSR’s strong growths in the future.

SORKON’s policy for the QSR segment this year focuses on strengthening the business. To appeal to the increasingly health-conscious consumers and follow the healthy food trends, the company will source fresh, clean, chemical-free ingredients (e.g. chemical-free vegetables, etc.) from reliable farms as part of its efforts to enhance the quality of food and service of its “ran saep classic” restaurants and win consumer trust.

In addition, the company will develop new packaging for ready-to-eat food products to better suit the now popular delivery service. It is also opening soon a prototype “ran saep classic” restaurant where food will be served chiefly by home delivery service, after discovering that sales from the service have now accounted for 20-25% of total sales in the QSR segment.

On a monthly basis, it has been adding to the menu for “ran saep classic” restaurants new Thai dishes that prove popular to both local and international patrons, e.g. kaeng matsaman, phat thai, etc., and conducting public relations and marketing communication campaigns to raise awareness of and stir up interest in the restaurants among foreign tourists staying in Thailand.

As for “ran khao kha mu Yunnan” chain, the company will remodel its investment structure, engaging its franchisees to run kiosks with an initial capital requirement of THB 89,000 each to ensure their easy reach within local communities. As the franchising opportunities are drawing huge interests, it will gradually replace the existing arrangements with existing partners by franchising. In addition, it will offer new dishes (e.g. dim sum, vegetable dishes, etc.) to add variety, and will introduce pork knuckle packs for sale in hypermarkets to allow consumers to carry them home.

“This year QSR business will remain our core growth driver. We will adapt strategies to strengthen the business and enhance competitiveness. We will choose chemical-free ingredients to set new standards and boost consumer’s confidence, which will enable the QSR business to continue its robust growth and allow us to record a double-digit total revenue growth rate for FY2017,” he said.