Mr. Paitoon Taveebhol
Chairman Of The Board Of Directors
Zen Corporation Group Public Company Limited successfully completed its IPO and was listed on the Stock Exchange of Thailand on February 20, 2019.
Meanwhile, during the course of the year, the country’s economy was in a slowdown, with the GDP growth steadily declining from 3.3-3.8% down to 2.6%. The Company focused on the current trend of Street Food, developing and opening branches under the brand name “Khiang” which serves a la carte dishes such as stir-fried basil with pork, chicken or beef etc., dishes which Thai people are familiar with and which customers of all income levels can access, since prices start at 49 Baht. The company opened 48 stores of Khiang in 2019.
The company’s performance in 2019 was affected by the economic downturn, with consumers lacking purchasing power and people not having the confidence in income, therefore being more cautious on food spending despite it being one of the 4 basic human needs. However, the company still managed to grow, with TSSG at the rate of 6.1% in 2019. Nevertheless, as a result of consumer spending slowing, the company’s SSSG decreased by 4.7%, resulting in the profit of the year 2019 falling from the previous year. The company opened 98 new branches during the year, representing a substantial increase in the number of total branches by 33% and this policy to expand and open new branches will continue next year. In addition, in 2019 the company added new sales channels by distributing retail products such as pickled fish and Jeaw Bong sauces through modern trade channels which helped grow sales by 293%; food delivery sales surged by 656%. In fact, by expanding into new brands and new revenue streams, all our business units (restaurant business, franchise business and food-related business such as food delivery and retail products) displayed continuous growth in 2019 and this is one of our key strategies to diversify the company’s risk.
Mr. Boonyong Tansakul
Chief Executive Officer
The company places importance on operating the business whilst following good corporate governance policies. For example, regular business risk assessments are undertaken so as to identify the different risks faced by the company and their potential impacts; steps are then taken to mitigate any significant risks and prevent negative effects to the overall business. The Company and subsidiaries also pay close attention to the fight against corruption and in this respect the company has been certified as a member of the Private Sector Collective Action Coalition Against Corruption (CAC). In terms of financial sustainability, the company commits to setting suitable financial targets with the goal to pay dividends to shareholders according to the policy submitted when listing on the Stock Exchange of Thailand. In the area of employees, the company has a policy to assist employees to be adept in their work and also aid them in their personal development as members of society. For example, staff have access to training courses in the development of their skills in cooking and serving customers. For personal development, the company encourages employees to be honest and caring towards their colleagues and customers alike while special projects such as the ‘Good Deeds for Birthday Project’, provides opportunities and encourages staff to participate in volunteer projects.
Regarding social responsibility, the company has undertaken several initiatives. Firstly, the company has a project “Jaidee Farm” to provide support to a community of disabled people who operate an organic melon farm; the group purchases and uses the melon products in the company’s stores while also generating awareness and promoting restaurant customers to buy the product themselves. Another win-win initiative is to support smaller-scale Thai farmers by purchasing beef from 3 major beef cooperatives in Thailand to ensure that the meat used in the group’s stores is high quality and free from harmful additives such as accelerated growth hormones. The company also entered into a Memorandum of Understanding (MOU) with Khon Kaen University to support the development of raising ‘low uric acid’ chickens which when eaten reduces the potential effects of Gout, and using the chicken meat in the company’s stores directly helps the farmers by providing them with a stable demand for their products. By using these types of products the company also considers the health of our customers as a priority, more examples include the company purchasing tilapia from farms that raise fish using organic farming methods free from chemicals and for vegetables the company has a policy to increase the use of suppliers which utilize organic farming methods. Waste is another area which the company is focusing and the company is reducing the usage of plastic by stopping the use of plastic straws and shifting towards biodegradable packaging and containers used for delivery. In these regards, the company followed the sufficiency economy philosophy of the late King Bhumibol the Great as a guideline for sustainable business operations.
The company would like to thank the board of directors, the management staff and the support department and also give special thanks to the store service-staff and chefs for their delicious, tasty dishes and impressive service. Finally, we would like to remind everyone that the company has and will continue to follow the corporate vision which is “To be the most preferred and trusted food services group for our customers, business partners and stakeholders”.