Zen Restaurant Group hints at strong Japanese dining trend with new strategy to enter the AEC markets and expected 2015 growth of 20%.
Thailand’s leading health food business Zen Restaurant Group reveals total income of over 1,800 Million Baht in the past year. The firm believes that the Japanese food business will grow by 20% in the year 2015. In anticipation of the strong Japanese dining trend, Zen Restaurant Group has planned to launch new branches, as well as to enter the AEC markets while consistently improving awareness of existing and new brands. Zen Restaurant Group plans to become listed on the Stock Exchange of Thailand in the next one to two years.
Wallapat Kaewumpai, Ph.D., Director Corporate Strategy Management Group, Zen Restaurant Group Co., Ltd., defines the group’s restaurant business as three groups. The first group is authentic Japanese restaurants which include 27 locations of the 22-year-old Zen Restaurant and one location of Zen Cucina at Central World. The second group is yakiniku restaurants which include 14 locations of the 7-year-old Aka and two locations of Gyu Grill. The third group is lifestyle restaurants which include six locations of On the Table and one location of Mori, Japanese style cake. These businesses have generated a total income of over 1,800 Million Baht last year or a 15% growth from the prior year.
“The Japanese restaurant industry in Thailand is currently valued at nearly 20,000 Million Baht with a tendency of 20% growth annually. Zen Restaurant Group has been working on plans and strategies to further strengthen our business since last year, partly in preparation for the listing of our company on the Stock Exchange of Thailand and for our entrance into foreign markets. To this end, we are putting emphasis on such matters as service, production process, cuisine choices and product quality. Our initial plan for 2015 is to achieve income of approximately 2,000 Million Baht or an 18% growth to reflect economic growth,” explains Wallapat.
Nevertheless, it is expected that new foreign brands will be introduced to the Thai market as the restaurant industry is more interesting than certain other industries such as real property which can be negatively affected by the economy. Interested investors may have the necessary capital but lack the experience and may resort to the acquisition of rights to operate a foreign brand in Thailand. Additionally, overseas restaurant chains may elect to establish presence in Thailand on their own as they appreciate the purchasing power of the Thai consumers. These undertakings will result in heightened competition, particularly in the Japanese restaurant sector. Zen Restaurant Group remains confident, however, that experienced and established large brands will be able to cope with the situation more effectively than the smaller operations.
For the year 2014, Zen Restaurant Group plans to introduce four to five branches each for Zen Restaurant, AKA and On the Table. For the other brands, we will see one to two new branches each. Locations will be the main focus for all new branches. One new brand called Tetsu will be introduced soon as a yakiniku restaurant for high-end customers. The Zen Restaurant brand itself will be further expanded into Zen Sushi and Sake which is a new lifestyle experience for dinnertime dining. As well, the group is studying foreign markets including ASEAN countries and beyond such as Singapore and Hong Kong for future endeavors.
“Our strengths have their origin in our Zen Restaurant brand. Quality has been our key value all along. The dishes we serve are created to ensure authentic Japanese dining experience using the best fresh ingredients but at a good price relative to brands of the same level. And by paying attention to our employees and their service to the customers, our Zen Restaurant has managed to attract the consumers now and again despite minimal marketing or advertising,” says Wallapat. “The yakiniku restaurant business, on the other hand, is highly competitive. That is why our AKA has to focus primarily on food quality. The traditional Japanese decor has now been dropped in favor of the New York loft style, beginning with the Central World branch. You will notice that the menu has been replaced and the staff uniform is now refreshed. We want to give AKA a look that is different from our competitors. The Japanese café, On the Table, is now four years into the operation. On the Table caters to customers who are already familiar with Japanese food and look for something different. We have chosen the CBD locations for this brand as this is where our primary customers are. On the Table features Tokyo café style, comfortable but not necessarily luxurious Japanese and Italian menu. Mori is now two years old. Mori cakes are light, easy on the stomach and low on calories.”