"These restaurants are expected to debut in Japan over the next two months, with at least 20 outlets targeted for franchise in the first year," said Yuthasak Supasorn, deputy executive director of the National Food Institute.

The scheme is aimed at expanding the number of Thai restaurants abroad from 9,000 to 20,000 by 2008, in a bid to increase the Kingdom's exports of raw materials and ingredients.

Separately, the Commerce Ministry plans to support at least 10 Thai franchises going abroad each year, targeting China, the US and the European Union.

Export Promotion Department deputy director-general Kunyaphan Raengkhum said yesterday that China was now the most interesting market.

 "The Chinese have a higher demand for good-quality food and service," he said. "Therefore, Thai firms should have an opportunity to spread their businesses there."

A Chinese Commerce Ministry report said franchises grew 10.4 per cent to 2,320 companies last year, with the number of outlets up 40 per cent, or 168,000. "Popular franchises now in China include restaurants, spa and beauty services and hotels, in which Thai companies have a high potential," said Kunyaphan.

Yuthasak said the centre was also seeking another two investors in the US to acquire franchises. "We are targeting at least 100 restaurant franchisees in the US market in two years," he said.

The centre plans to sell its franchises worldwide, including in Dubai, India and China.

Currently, the US has the highest number of franchise companies in China after first entering that market in 1990. So far, successful companies are McDonald's, Subway and KFC. Thai firms franchising their businesses in China include CoCo and Thai Thai restaurants, Coffee World, Maxdigital Printing and Ticket Online Software.

About 13 million Chinese have a high average income - US$29,630 (Bt1.13 million) per year. China is expected to enjoy average annual economic growth of 8.5 per cent in the next five years. The department will lead a delegation of enterprises to participate in the Franchising China Conference and Exhibition in Beijing November 2-10.

James Bryant, former development agent of Subway in China, suggested new Thai enterprises first register their trademarks and licences before getting into the market.

He said enterprises should also do their homework well before entering into joint ventures with local partners and understand the legal structure clearly. These are the keys to business success in China.

Pranita Kurdpikul, director of the department's Service Trade Section, said franchises would be key to driving Thailand's economy in the near future. She urged enterprises to consider franchising abroad, since that would create more income than domestic operations.

"Budgets for franchise businesses in China are also not large, about Bt3 million to Bt5 million for a small outlet", she said.

Chalida  Ekvitthayavechnukul,

Petchanet Pratraungkrai

The Nation