Thailand revenues surge at restaurant chains as dining out is back in vogue
Source：The Nation
From：Taiwan Trade Center, Bangkok
Update Time：2024/02/26
The restaurant business has bounced back from the pandemic, while food delivery services have seen a 32% decline since the pandemic, according to some estimates, as dining out is back in vogue, especially at large chains.
MK Restaurant Group’s revenue rose 10% year on year to 4.435 billion baht in the second quarter, while net profit reached 459 million baht, a 4.5% increase during the same period. In the first six months, the company's revenue totaled 8.52 billion baht, up 13.5% year on year, and its net profit was 784 million baht, a 10.4% on-year increase.
MK Suki remains the group’s top earner, accounting for 75% of its revenue, followed by Yayoi (18%), and Lam Charoen (6%). Dine-in services fully recovered in the first half of the year, accounting for 85% of revenue compared to 77% in the year-ago period. Take-away accounts for 6% and delivery for 9%.
Although overall sales and profits increased, expenses rose 16% on-year in the first half to 4.77 billion baht. Wages comprised 51% of total expenses, with the rest being depreciation, rent, and utilities.
Minor International’s food unit, Minor Food, saw revenue rise to 15 billion baht in the first half of the year. Its brands include The Pizza Company, Burger King, Sizzler, Bonchon, Swensen's, and The Coffee Club. It operates a total of 2,581 outlets, with 1,300 being self-owned, and the remaining 1,281 being franchises. It has 1,943 outlets in Thailand and 638 outlets in 22 countries in Asia, Oceania, Europe, and North America (Canada and Mexico).
Rising raw-material costs and soaring electricity bills hit profits at Central Restaurant Group. Still, it saw impressive growth. In the second quarter, it generated revenues of 3.17 billion baht, a 9% increase from the same period the previous year. Net profit, however, fell 2% in the period to 135 million baht. Same-store sales continued to grow by 5%, with dine-in services recovering.
The group opened 78 new outlets during the first half, raising their total to 1,590 branches. For the first half, the group’s revenue rose 12% on-year to 6.18 billion baht, but net profit fell 7% to 226 million baht.
S&P, which has several brands ranging from S&P to Blue Cup Coffee, reported the highest profits in seven years in the first half of this year. Sales rose 12% on-year to 2.89 billion baht in the first half, while a net profit jumped 14% to 194 million baht. Dine-in services rose 56% on-year in the second quarter and 59% on-year in the first half. Growth was driven by sales in retail stores and hospitals. Home deliveries rose 7%.
Despite the positive results, it expects higher costs in the second half due to rising energy prices.
Zen Corporation Group – whose brands include AKA, Zen Restaurant, On The Table, and Kieng – operates a total of 327 outlets: 157 it owns and 170 franchise outlets. In the second quarter, its revenue rose 12% on-year to 961 million baht, but net profit was almost unchanged, rising just 1% to 50 million bah. In the first half of the year, revenue from sales and services rose 21% to 1.87 billion baht, while net profit surged 54% to 88 million baht.
The company invested in 15 new branches in the first half, which explains its weak profit growth in the second quarter. It also revamped its brand image and increased marketing. This resulted in 31% growth in dine-in sales for the first six months. Deliveries, however, fell 32%.
Zen Corporation also faced increased costs, leading to a total expense of 481 million baht for the first half of the year, a 19% increase from the year-ago period. This was primarily due to rent, utilities, and wages.
After You dessert café dominated the dessert segment of the restaurant market with sales jumping 30% year-on-year in the second quarter to 299 million baht. Net profit rose 26% to 43 million baht during the quarter. First-half sales rose 32% on-year to 563 million baht, while net profit surged 57% to 77 million baht. The company opened a new brand, Song Wat Coffee Roaster, and is planning to expand domestically and internationally.
Source: https://www.nationthailand.com