Central Restaurants Group (CRG) foresees a 5% sales growth in 2024, driven by the digital wallet subsidy scheme, amidst projections that Thailand’s restaurant market will surpass 400 billion baht this year.
CRG President Nath Vongphanich acknowledged the Pheu Thai Party’s proposal to introduce a 10,000-baht digital wallet stimulus plan in the fourth quarter, indicating that the company awaits further information and directives on this initiative. Eligible CRG establishments are anticipated to contribute to a roughly 5% rise in same-store sales, he mentioned.
However, the potential introduction of a new daily minimum wage in conjunction with escalating electricity costs poses cost-related challenges for the company, prompting Mr. Nath to suggest government assistance through energy price subsidies, given that energy accounts for 4% of the cost of goods sold.
Mr. Nath disclosed that CRG experienced a 1-2% average growth in same-store sales during the first half of the current year compared to the corresponding period in 2023. The investment focus for this year will be on strengthening key restaurant brands like Ootoya and Pepper Lunch, with plans to expand Pepper Lunch outlets into rural areas.
When it comes to expanding their brand portfolio, CRG is on the lookout for brands with growth potential and resilience in navigating market downturns, as highlighted by Mr. Nath. Following a restructuring of its management system, the company is poised for sales expansion, targeting 1 billion baht in revenue over the next five years.
In an effort to collaborate with Thai SMEs, CRG aims to introduce two additional restaurant brands this year, emphasizing Shabu-shabu and Yakiniku styles. The Thai restaurant market is forecasted to grow by 7% in 2024, reaching a value of 400 billion baht.
CRG’s sales goal for the year stands at 16 billion baht with double-digit growth, surpassing the overall restaurant market growth rate, propelled by store expansions and a resurgence in the tourism sector.