Central Restaurants Group (CRG), the country's leading restaurant chain operator, intends to invest 400 million baht to open 30 new KFC branches next year, spending three times faster than pre-crisis levels thanks to a full recovery in the quick-service restaurant (QSR) segment.
According to Piyapong Chitchumnong, head of QSR & Western cuisine and head of KFC for CRG, the new branches will bring the total number of KFC outlets to 350 next year.
Half of the new branches will be in Bangkok, with the rest in upcountry areas.
The new KFC branches will have stand-alone and shophouse concepts as well as "green" stores, both at Central Group's assets and outside the group's assets, he said.
"The QSR market has normalised now that consumers have adapted their behaviour to Covid-19," said Mr Piyapong.
"The contribution of KFC's dine-in business is back to 75% of the total now, from 90% in 2019, and we expect that sales of KFC under CRG operations this year will grow by 25% to 6.3 billion baht, almost on par with the pre-crisis level. We project sales to reach 7 billion baht next year."
KFC contributes 40% of CRG's sales.
He said next year the brand will launch new menu items to boost sales, offering a wider variety of alternatives for differing tastes.
Mr Piyapong described them as convenient for consumption at affordable prices.
The company is confident it can attract customers who prefer freshly brewed beverages and desserts, increasing purchase frequencies, he said.
KFC will launch new store formats next year, including Park and Go, with the aim of providing more convenience to customers and better reach, said Mr Piyapong.
New locations are being scouted to help delivery and omni-channel businesses, while operating hours will be expanded for night-time customers, aiming to promote growth at KFC.
Existing restaurants will be refurbished with new designs and modern concepts to attract customers, he said.
More "KFC Cafe by Arigato" branches will be opened because they have proven crucial in bringing in more customers in the mornings and afternoons. There are currently 260 branches of "KFC Cafe by Arigato".
"Thailand's QSR business is very fierce as new players have entered this market over the past few years, particularly in fried chicken," said Mr Piyapong.
Existing players in the QSR segment have also branched out into the fried chicken business, he said.
"The KFC brand is a destination for families, solo diners, or those eating in a group. The brand has a long history in Thailand and can appeal to every segment, gender and age," said Mr Piyapong.
"Though we are optimistic about the QSR outlook, we remain concerned about uncertainty related to palm oil prices and the exchange rate because we import much equipment from overseas suppliers. However, we try to balance between local and imported goods, work closely with suppliers, and we don't overinvest."
