McDonald’s Looks To Get Big In Thailand

Bangkok Post:

After taking over McDonald’s Thailand operations recently, cinema entrepreneur Vicha Poolvaraluck and fried chicken guru Hester Chew have announced plans to super-size the fast-food chain by spending 500 million baht over the next five years _ double what the company spent in the previous five years.

Mr Chew, who chairs the executive committee of McThai Co, which operates McDonald’s in Thailand, said the company planned to open 50 new McDonald’s outlets over the next five years. During the same period, about 50 to 60 existing stores will be renovated, he said.

”As McDonald’s has a strong brand, we don’t need to change much but focus on improving product quality and service, and moving with faster speed and efficiency,” Mr Chew said.

Mr Vicha and his partners purchased a 100% stake in McThai Co last month, which awards them the rights to operate the fast-food chain in Thailand for the next 20 years. He declined to confirm reports that the deal was worth as much as two billion baht. With 19 years’ experience at Yum Restaurants’ KFC both in Thailand and elsewhere, Mr Chew said the new management team would also renegotiate with suppliers to buy raw materials under longer-term contracts to lower product prices.

As well, the company will aggressively add more local menu items to fit with local demand. It will also introduce new-concept stores to fit with each community, including McCafe.

Next month, the company will open a novel two-storey McDonald’s outlet at Esplanade shopping complex on Ratchadaphisek Road.