The Pizza To Expand Through Franchising

Bangkok Post:

The Minor Food Group (MFG) plans to expand its food outlets through franchising rather than investing on its own to reduce its operating cost, according to its executives. The Pizza Company and Swensen’s outlets operated by franchisees will account for 60% of total outlets of both brands over the next three or five years, from about 40% currently, said Kullavat Vichailak, the group’s franchise director.

Currently, MFG operates about 500 restaurants in Thailand under five brands. Only two of its brands _ The Pizza and Swensen’s _ are franchised. Other brands are Sizzler, Dairy Queen and Burger King.

MFG operates 128 The Pizza outlets by itself while 32 are run by franchisees. The ratio is 110:46 for Swensen’s ice-cream shops.

Mr Kullavat said the company planned to increase the total number of franchised outlets to 110 next year from 78 currently. It projects sales revenue from franchised outlets as high as 1.2 billion baht, up from the estimated 800 million this year.

Although the group has been in the food business for over two decades, it started franchising part of the business only five years ago.