Central Restaurants Group Co Ltd (CRG), a subsidiary of SET-listed Central Plaza Hotel, plans to invest 1.4 billion baht this year for store expansion, renovations and back-office improvements.
Of the total, around 900 million baht is for store expansion, 220 million is for store renovations, 70 million is for back-office and IT improvements, while the remainder is allocated for other purposes, said Nath Vongphanich, chief executive of CRG.
This does not include the budget for potential mergers and acquisitions, nor the expansion of Lucky Suki restaurants, according to the company.
CRG plans to open 140-160 additional stores this year, including 50 new outlets for joint venture brands such as Salad Factory and Shinkanzen Sushi, as well as 40 stores under Mister Donut's franchise model.
The company is set to launch the new franchise brand Hanam BBQ, a fresh concept for Korean barbecue restaurants, with the first branch opening at CentralWorld this year.
CRG aims to add 2-3 high-potential brands to its portfolio this year, focusing on restaurants suitable for families and the beverage category, said Mr Nath.
WAR EFFECTS
The war in the Middle East has driven up energy prices and logistics costs. As a result, prices for raw material such as seafood, imported products and packaging have climbed.
CRG is implementing cost management measures, including strategic forward contract purchases, he said.
"We have enough inventory to last 2-3 months and aim to keep prices steady as long as possible," Mr Nath said.
The company is also diversifying its supplier base, focusing on sourcing more local raw materials.
In addition, he said CRG is improving its logistics system and continuing to implement energy-saving measures.
Prices are fluctuating, but the structure of pricing is not changing, said Mr Nath.
Meanwhile, the company is leveraging its size and brand variety to negotiate better deals with suppliers, he noted.
The impact of the war remains manageable, though the company is monitoring the situation, said Mr Nath.
Customers are becoming more cautious with their spending, he noted, yet restaurants remain resilient because many people consider them essential.
While some customers may choose less expensive options, the company offers a wide range of choices to suit different budgets, said Mr Nath.
CRG plans to emphasise a "value for money" approach by adjusting its menus, portion sizes and promotions.
Despite uncertainty plaguing the global economy, the company reported a recovery in tourist arrivals and shopping mall traffic.
