Sun Group rises to expand its retail ops

Chicken farmer and frozen-chicken exporter Sun Group plans increase the number of pushcarts in its Go Sun khao man gai (chicken and rice) franchise business to 3,000 in five years.
The company hopes the push to find more franchisees will increase its annual franchise sales to Bt1.5 billion within the next five years.
After the bird flu cut into its export business in 2004, the company decided it had to find a use for the excess chickens at its farms, so it started the business the following year, according to Somkiert Tangjaiaworn, the group's president.
The company now has 99 franchised pushcarts after opening its first in 2005 near Kasetsart University.
The franchise business is expected to generate Bt40 million in revenue this year, a mere fraction of the company's expected take of Bt3 billion. The rest of the group's sales are generated from exports of processed and frozen chicken.
To meet its franchise business growth target, the company has set a low franchise start-up fee of Bt30,000. For that a franchisee gets 26 pieces of equipment including a pushcart. The franchisee also has to pay an origination fee of Bt5,000.
Somkiert said the company would not charge its franchisees an annual fee to help the reduce their costs, enabling them be able to sell their khao man gai dishes for Bt15 apiece, which is Bt5 to Bt10 cheaper than most of itscompetitors.
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