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Published on September 11, 2007

The Oishi Group, a local leading operator of Japanese restaurants, has developed a new small-scale business model called "delivery and carry out" (Delco).

The new approach is set to overcome the current problem faced by the company in expanding its standard restaurant outlets in Bangkok, which takes time and a high investment cost.

The new restaurants will serve the group's business vision of being the leading operator of Japanese restaurants in all formats.

"Our new Delco outlets will require less investment, between Bt2 million and Bt3 million, and average space of only 50 square metres. They will employ only 10 people, of whom half will be allocated for delivery work," said Paisarn Aowsathaporn, the Oishi Group's director of operations.

He said each Delco outlet would cover 20,000 households in an area, with home delivery available to customers within a 15-minute drive.

"The small-scale format will allow us to be closer to customers. It will also encourage consumers to enjoy a new Japanese-food alternative, rather than repeating the same conventional home-delivery sets like pizza or fried chicken each day," said Paisarn.

The first Delco outlet opened in Bangkok two months ago in Lat Phrao Soi 71, while the second opens on Saturday in Phyathai Hospital in Phetkasem Soi 21.

The restaurants offer eight different Bento sets, 12 a la carte menus and 10 appetisers.

Paisarn said the Oishi Group now operated three different formats of its standard Japanese restaurants: Oishi Buffet, Shabushi by Oishi and Oishi Ramen.

The buffet restaurants contribute 65 per cent of revenue to the group, which expects to achieve sales of Bt1.8 billion this year, up from last year's Bt1.5 billion.

The group will spend between Bt15 million and Bt18 million to open more buffet restaurants, each of which requires 600 square metres and 60 staff, Paisarn said.

The average investment allocated to the group's Shabushi restaurants is about Bt10 million. These require 180 square metres of space and 50 staff.

The group will spend at least Bt5 million to open more Oishi Ramen restaurants. These require 80 square metres and 20 staff.

Paisarn said the group currently had three buffet restaurants in Soi Thonglor and on Phaholyothin and Sathorn roads, seven Oishi Express restaurants and one Oishi Grand restaurant in Siam Discovery Centre.

Oishi operates 11 Shabushi restaurants, mainly in Bangkok, with the 12th outlet opened last Friday in The Esplanade lifestyle complex.

The company will open a new Shabushi restaurant on the fourth floor of Siam Centre next month and another Shabushi outlet by the end of next month in The Mall Tha Phra.

It also has 24 Oishi Ramen restaurants, mainly in Bangkok and major provinces.

"We want to have about five Oishi Delco outlets by the end of this year in Bangkok and its outskirts, with new outlets to be opened at other locations, including the Bang Yai, Soi Onnuj and Pak Kret areas. Another 10 Delco outlets will open next year in the greater Bangkok area," said Paisarn.

Paisarn said the group expected to open as many as 25 Delco outlets, covering 80 per cent of the greater Bangkok area, in the next three years.

Oishi enjoys a 33-per-cent share of Thailand's Bt5-billion Japanese-restaurant market.

Kwanchai Rungfapaisarn

 The Nation