McDonald's sales go stale on economic woes
HESTER CHEW, McThai’s chairman, says the firm will open outlets despite flat growth.
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McThai, the master local franchisee of American fast-food chain McDonald's, has experienced flat sales during the first five months of the year due to the economic downturn.
Hester Chew, chairman of McThai's executive committee, yesterday said this was the first time in five years the company was seeing flat growth. However, he said the overall "quick-service restaurant" market, which is currently worth Bt14.5 billion, was facing the same predicament. Responding to the unfavourable economic situation since early this year, McThai has focused its business plan on broadening menu variety, increasing the number of its outlets from 94 last year, as well as regularly launching new marketing activities. The company is also planning to open eight to 10 McCafé outlets this year. The overall expansion plan requires an investment of about Bt300 million. "The current economic situation doesn't enable us to grow at all. Hence, we have to adjust ourselves to sustain our growth," Chew said. The company has also relaunched its delivery service, with the new concept of "Deliver to your door with variety of meal choices till midnight, with no minimum order". It plans to increase the number of delivery centres from 35 at present to 46 by the end of the year. It also plans to open about five major branches and five kiosks in Bangkok and the countryside, as well as renovate some branches. Since January, it has already opened two branches - one in the Esplanade shopping mall in Bangkok, and the other in Hua Hin. It is also renovating its branch at the Amarin Plaza shopping mall to give it the same look as the one at the Esplanade, and will next undertake renovation of its outlet at CP Tower. Chew expects the renovations alone to help increase sales at those branches by 10 -15 per cent. McThai yesterday also announced plans for three marketing campaigns - Fish Kingdom, Shrek the Third, and Jelly Trio. The Fish Kingdom campaign features a fish n' fries menu (golden fried fish in breadcrumbs served with french fries), while Jelly Trio features jelly with many ingredients. The Shrek the Third campaign will be undertaken in collaboration with McDonald's, who are the major sponsors of the "Shrek the Third" movie, and DreamWorks Animation, who made it. McThai has launched the Green Float beverage and a special menu designed for the movie. It also offers privileges for people who watch the movie at any Major Cineplex theatre. Chew expects McThai's overall sales to grow 10-15 per cent this year. Nitida Asawanipont The Nation
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