Minor to buy food brand and foreign hotel next year

Pratana Mongkolkul, chief financial officer, said Minor International would spend Bt2 billion on the hotel purchase.

Montri Thongsri, chief financial officer of Minor Food Group, a subsidiary of Minor International, said Minor Food would spend the other Bt3.5 billion, of which about Bt2.4 billion is for obtaining a food brand and Bt1.1 billion is for setting up its own outlets here and abroad.

Of the Bt1.1 billion, Bt800 million will be for Thailand, Bt200 million for Singapore and Bt100 million for China.

Pratana said Minor Inter-national expected group profit in the fourth quarter would be better than the third quarter due to the improvement in tourism.

Minor International's hotels are 65 per cent booked for the high season, up from 60 per cent in the first nine months.

Hotels contribute 24 per cent of Minor International's revenue, while the food business accounts for 55 per cent.

Montri said Minor Food Group, which operates 10 restaurant and fast-food chains, projected sales to grow 20 per cent next year from adding franchised and owned outlets. Growth might exceed 40 per cent if the new food brand is included.

Minor Food expects its sales this year to increase by 14 per cent to Bt10 billion.

Paul Kenny, CEO of Minor Food Group, said the number of franchisees was expected to increase by 30 per cent within three years after TMB Bank extends loans to SMEs to purchase franchises for The Pizza Company and Swensen's restaurants.

Minor Food has 150 franchised and 672 company outlets nationwide. It will increase one food franchise next year from the current two - The Pizza Company and Swensen's - in the domestic market, he said.

Montri said the food business in Thailand had room to grow. There are still new destinations, such as hospitals, state agencies and schools. "We plan to expand through franchised more than owned shops with the proportion of 70:30 next year," he said.

Minor Food has sold two licences for The Pizza Company and Swensen's to partners in Vietnam. The first outlet will open next year. The company targets 50 franchised outlets there within five years.

The company will also expand The Pizza Company's franchised operation in Laos to 10 units within five years, he said.