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Published on November 23, 2007

The company, which celebrates its 10th anniversary in Thailand this year, has set what it calls a crucial growth target to strategically increase the number of outlets of its two flagship brands.

"We expect to increase the number of KFC outlets in Thailand from 313 at present to about 600 in the next five years. The number of Pizza Hut restaurants will be increased from 73 at present to about 200 over the same period," Sran said.

"Our business philosophy is to build strong growth on a sound business foundation, particularly in the areas of human resources and working systems."

Sran said both KFC and Pizza Hut still had strong potential for growth in Thailand.

"Our previous expansion strategy was to go along with the opening of modern retail stores in Bangkok and major cities. This is not our key expansion strategy any more. We are now more flexible and will open our restaurants in small locations and venues such as shophouses," he said.

Sran said KFC's 313 outlets were spread throughout 60 provinces. The company would no longer open KFC restaurants in major cities.

"What we have done in expanding KFC is to open in small cities. We opened a KFC restaurant in Chiang Mai's Fang district in June this year, and last year we opened an outlet in Thung Song district of Nakhon Si Thammarat."

The company has also set up regional offices across the country to draw itself closer to its markets and its consumers. These offices will take responsibility for the daily working systems and store operations of outlets in their regions.

"We have divided the market into six different regions and set up a regional office to take care of each region," he said. "The Nakhon Si Thammarat regional office will look after the southern region and Nakhon Ratchasima will look after the Northeast. Our regional office at Phitsanulok will be in charge of the northern region and another regional office, at a rest area on the highway heading out of Bangkok, will take care of the Central region."

Two regional offices have been set up in Bangkok, dividing the capital into separate areas of responsibility.

"We want to customise ourselves to particular regions in things such as menus and pricing. We need to understand customers in different communities and give them what they want," Sran said.

He said the company would focus on a different marketing strategy for Pizza Hut that would begin by totally separating the dine-in restaurants from the home-delivery business.

Sran said Yum Restaurants had opened 27 new outlets for KFC and four for Pizza Hut in Thailand this year. It expected to open about 30 new KFC outlets and 15 new Pizza Hut restaurants next year.

Kwanchai Rungfapaisarn

 The Nation