ZEN partners with PTT to expand branches nationwide Stockpiling over 70 ideal spots at PTT stations for new restaurants
"ZEN Corporation Group Public Company Limited (ZEN)" is collaborating with PTT Public Company Limited to rent spaces within more than 70 PTT service stations to support the opening of new restaurant branches. The Company is also preparing to participate in the 31st Thailand Franchise Expo on June 13-16 with the promotion being special rates on entrance fee and monthly loyalty fee while also reaching the agreement with KasikornBank and Siam Commercial Bank to offer 100-percent loan to franchisees.
Mr. Boonyong Tansakul, Chief Executive Officer of ZEN Corporation Group Public Company Limited (ZEN) - the food service provider, revealed that the direction of the Company's business plan for the second half of the year was to continuously increase the number of restaurant branches both in Bangkok and major high-potential provincial cities with the business model that embraced both the Company's direct investment in the restaurants as well as expanding the franchises. As of today, locations to support this branch expansion plan for the second half of the year have been locked in.
The Company has reached a partnership agreement with PTT Public Company Limited which operates more than 1,700 PTT service stations nationwide, with PTT to support the rental of spaces within PTT stations to the Company for the establishment of restaurants. Currently, more than 70 locations in Bangkok and the provinces have been identified to support the expansion plan for the second half of the year. Some of these locations will support the branches of "Khiang by tummour" - Thai restaurant in the street food genre that stresses savory and spicy taste and low prices. The brand is aimed at the customer group in communities to fulfill the needs of consumers who do not have time to cook their own meals. Simply put, "Khiang" is designed to be the 'community kitchen' to support the surrounding communities. This restaurant will use the franchise model to expand nationwide along with the expansion of catering and delivery services under the "Khiang" brand.
On June 13-16 this year, the Company will participate in the 31st Thailand Franchise Expo to be held at BCC Hall, 5th floor, Central Plaza Ladprao. This exposition will involve discussions on franchise business for those who are interested or are looking to have their own businesses. The highlight of the Company's participation will be the introduction of rental spaces within PTT service stations and other locations to those interested to buy "Khiang" franchise. The attraction will be the special discount on the entrance fee from 400,000 baht to only 350,000 baht and the fixed monthly loyalty fee of 12,500 baht instead of the customary percentage of monthly sales. In addition, the Company has collaborated with KasikornBank and Siam Commercial Bank to offer 100 percent loan to franchisees.
The CEO of ZEN further said that, in the overall picture of the restaurant branches expansion plan for the second half of the year, it is expected that a total of 30 new branches will be opened, including 12 restaurants under "Khiang" brand in locations such as PTT service stations, community malls, food courts, etc. This new brand is expected to garner good response as, to date, most branches have been realizing revenues above target while new branches have started to be commissioned in new locations, such as in Metro Mall which is a retail area in an MRT station, in stand-alone locations and shophouses, etc.
Mrs. Yupaphan Ekasittikul, ZEN Chief Financial Officer, said that the Company has set a growth target of 15-20 percent and an investment budget of 230 million baht to invest in the business expansion plan. Following the Company's listing on the Stock Exchange of Thailand (SET) in February 2019, ZEN's financial position has been strengthened as the debt-to-equity ratio has been significantly reduces while the capability to expand its business has been enhanced.
The Company has set the income target from its delivery service this year at 100 million baht after recording enthusiastic response. This has resulted in the enhanced ability to increase profit as the personnel costs can be shared with the existing branches at present. At the same time, the Company also concentrated on improving the efficiency in cost management and control in sell, general and administrative (SG&A) expenses to increase the rate of initial profit.
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