From agriculture to fast food
Fifth biggest company in Thailand keen to bring in a taste of home to Aussies.
A few months ago, Charoen Pokphand (CP) Food announced its plan to roll out 500 quick-service Thai restaurants -- under the name 1000 Wat -- in Australia, in attempt to boost its revenue from fast food to 10% from 3% within a decade.
CP Foods is the $11 billion food arm of Charoen Pokphand Group, Thailand's largest Agriculture-based conglomerate.
Rochard Lovell, General Manager for CP Foods Australia, New Zealand and Pacific Islands, told QSR Media that what attracted the firm to Australia is its innovative market and economy. An economy that has recorded 23 years of uninterrupted growth.
That and Australians' love for Thai food.
"Australians have a great love of Thai food," said Monica Lim, Brand Manager of 1000 Wat. "There are so many Thai restaurants in Australia and so many Australians also travel to Thailand every year. However, within the QSR space there are very few Thai concepts."
Noticing a significant growth in interest in Asian quick service restaurant concepts (QSR), Lim thinks its the perfect timing for 1000 Wat's entry to the Australian market.
Lim describes 1000 Wat as a tasty, easily accessible, fast, value-for-money Modern Thai food.
THE BEST OF BOTH WORLDS
1000 Wat is a joint venture between the CP Group and husband and wife Konfir Kabo and Monica Lim.
Lim notes that despite being small business owners, CP Foods has decided to partner with them to roll out 1000 Wat. "In this way, I think we have the best of both worlds," she told QSR Media.
"We have the production capacity, consistency and cost-effectiveness from being a large company but we also have the local knowhow and entrepreneurial passion on the ground to really develop a concept that will work in Australia for Australians."
Hart, quoted in article published at Smart Company last July, notes "the economy of scale CP Foods is bringing to the venture, combined with their ability to reduce production and shipping costs through its vertical integration model, will give them a good chance of succeeding down under."
"Most of our food is farmed by CP, from the prawns to the rice," Lim told QSR Media, " so we have control of the process and quality from the very outset."
FUTURE
The first location at Melbourne is now opened but Lim tells QSR Media that the next three years will be crucial for 1000 Wat.
"By three years we hope to have a good base in Victoria and also to be making inroads into New South Wales. We should also be franchise-ready within this timeframe in order to really accelerate growth over the next 5 years."
The group is presently working on the development of a kiosk format, in efforts to roll-out stores quickly with minimal store footprints and with maximum efficiency.
"It will also give us flexibility in choosing locations as we will not be tied down to particular mechanical requirements. In Australia efficiency becomes top priority as we are a high-cost jurisdiction. This will be the priority for 2015," she added.
