'ZEN Corporation Group' moves forward into HY/2020 Ready for restaurant business resurgence, full speed ahead To open 100 'Khiang' branches this year & boosting delivery revenue
ZEN Corporation Group Public Company Limited (ZEN) went on the offensive in the second half of 2020 in anticipation of restaurant business resurgence following the government easing of lockdown measures, promoting more conducive consumer environment with the expectation of 80-85 percent customers returning compared to normal situation. The Company expressed confidence that it was ready for this turnaround as it speeded up the opening of street-food style, made-to-order Thai food “Khiang” restaurants to reach the targeted 100 branches within this year with the emphasis on the franchise format. At the same time, the Company was to advance the delivery services on every platform with the goal of achieving more than 10 percent of overall revenue. Also instituted was the strict “6S” hygienic measures at all restaurants.
Mr. Boonyong Tansakul, Chief Executive Officer of ZEN Corporation Group Public Company Limited (ZEN) - the food service provider, revealed that the Company had full confidence in the direction of the business that would once again return to significant profit. In the second quarter, the overall picture of the restaurant business showed strong impact from the curfew and lockdown measures in April and May, and that was expected to be the lowest point in this year’s performance leading into the government’s 4th level of relaxation measures in mid-June. This has resulted in the clear revival in consumption especially in the overall picture of the restaurant business that have gradually reopened their doors.
There are now more than 10 brands in the ZEN Group restaurant portfolio to cater to all consumer segments. The various brands include AKA, ZEN, On the Table, etc. As of today, most restaurants, both standalone and in shopping centers, are posting 80-85 percent of inhouse dining compared to the normal time. This is considered to be a quick recovery.
“Where all our restaurant brands are concerned, this quick recovery can be termed as ‘V-shape’ because the consumers are more confident in our brands and they can travel to the office and can resume their normal leisure activities after the government has gradually relaxed the restrictions and allowing businesses to resume. Also, no new infections have been found locally for many days. Therefore, the Company is confident that our performance in the second half of the year will be good,” Mr. Boonyong said.
The CEO of ZEN Group went on the say that during the preceding time, the Company has adjusted its business strategy to ensure quick return to strength and increase the revenue in the second half of the year. These include, 1) Restructuring of the organization to improve management proficiency and increase efficiency in expenditure control and cost management; 2) Renovating some branch restaurants to install virtual kitchens, or central kitchens that can support the preparations of dishes for other brands within the group, such as some “Lao Yuan” and “Tummour” branches that can prepare dishes for the “Khiang” brand - a move that will increase sales for each of the branches.
3) Increasing the number of branches of “Khiang” made-to-order Thai restaurants with the emphasis on the franchise model that was almost untouched by the effect of the recent COVID-19 epidemic. This will also help to create opportunities for people who want to invest in the restaurant business with the outlook for full return on investment within only 2-3 years. In the past five months, more than 20 branches have been opened, pushing the total number to 70 restaurants. It is expected that by the end of the year the number will reach 100 restaurants, becoming the Thai restaurant brand with the highest number of branches in Thailand.
And 4) Continuously increasing the revenue share of the delivery business through various platforms, such as Grab Food, Lineman, Get and Food Panda. The orders can be placed through the Company’s online store at “1376 Delivery”, as well the 1376 call center. Also, a new “Chicken Z” menu with secret recipes has been developed inhouse to cater specifically to the delivery customers. At present, 12 branches are designated for delivery services. It is projected that the revenue from the Company’s delivery services will increase to 300 million baht, or more than 10 percent of this year’s total revenue.
In addition, the Company has established the highest and strictest safety measure at all restaurants through the 6S resolution which comprises of, 1. Supply Chain Control, to ensure that the GMP standards of raw material sources are met; 2. System, with inspection teams working to control the food preparation standards that is properly cooked, clean and safe, such as the staff’s strictly controlled food storage and the hygienic state of cooking utensils; 3. Staff Screening - all employees must be strictly screened before entering the workplace and must wear protective gear at all time during work; 4. Social Distancing, in the table setting with a minimum 1-meter spacing, temperature checking that must not be higher than 37.5 degrees Celsius, scanning of Thai Chana application, and cleaning of hands with disinfectant gel; 5. Separate Equipment - The diners’ chinaware and silverware must be for individual use and have gone through standardized disinfection, and; 6. Safe Delivery - The dishes the customers are bringing home or taking delivery must past the restaurant’s stringent safety standard.
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