lower rents encourage coca to expand abroad

"It is a great opportunity for us to expand our business abroad amid the gloomy economic outlook because we can lease land at lower prices than those which have been offered this year. We will increase the number of our overseas restaurants by the most we have ever done," CEO Pitaya Phanphensophon said yesterday.

The plan is to establish 15 branches of its restaurant chains, particularly Mango Tree, in foreign markets next year, mostly in the Middle East, which has been largely spared from the global financial crisis.

The company runs a Mango Tree Bistro in Dubai and will open another restaurant in Bahrain early next year.

Spending per person per visit in Dubai this year was US$50 (Bt1,770), which has not declined despite the financial crisis. In contrast, in some developed countries such as England and Japan - the biggest market for Mango Tree restaurant - such spending has slipped from £75-£80 (Bt4,300) to £55 after the financial crisis.

Coca might consider taking Mango Tree restaurants to Australia again after having failed in the first attempt. Another destination will be Vietnam, which now has four outlets.

"Although our first restaurant - Coca - has been operated for 52 years and we can build our reputation from that brand, Mango Tree is more well known in the overseas market as it is a Thai cuisine restaurant. Suki may not popular in every culture. So we have to take time to create the proper pattern of suki restaurant in each country," he said.

In the home country, two Mango Tree Bistros are on the drawing board, one for the new Central Pattaya Festival, but no Coca restaurants are earmarked for next year.

The company would spend all next year studying local consumer behaviour in order to design a new look for Coca suki restaurants before possibly rolling out the new concept in 2010.

The poor economic environment as well as political uncertainty are expected to take a toll on the company next year. About 30 per cent of Coca restaurant's business is from corporate clients which are expected to cut their entertainment budgets in order to survive next year. Domestic spending per person per visit next year is forecast to drop by 12-15 per cent from Bt600 on average this year.

"We expect to generate revenue from domestic operations of Bt500 million this year, an increase of 13 per cent from last year, while total revenue - including the overseas operation - will be Bt1 billion. We expect our revenue to grow by 7-8 per cent next year," he said.