
Technology only started to permeate the food industry 7-10 years ago, with quick-service restaurants rolling out websites and making their menus available online.
Fast-forward to today and the situation is very different. Mobile ordering exists at many restaurants, loyalty programmes are available on apps and customers have a raft of digital options allowing them to order anytime, anywhere.
Customers are continuing to make choices based on speed and convenience.
These trends are behind the recent transformation at Yum Restaurants International Thailand, the operator of the KFC fast food chain, as it has shifted from being a "restaurant support centre" to a "brand innovation centre".
Last August Yum signed a franchise agreement worth 11.3 billion baht with The QSR of Asia (QSA), an indirect wholly-owned subsidiary of ThaiBev, to operate 240 KFC stores in Thailand.
The move put KFC branches under three franchisees -- Central Restaurant Group, Restaurant Development Co and QSA.
Yum Thailand's refranchising efforts are part of parent company Yum Brands Ink's strategy to accelerate global growth.
Waewkanee Assoratgoon, managing director of Yum Restaurants International Thailand, said the refranchise programme is scheduled to be completed this half. Those efforts in turn are eyed at speeding up the KFC restaurant roll-out.
About 50 KFC restaurants were opened last year via franchisees with Central Restaurant Group and Restaurant Development.
The company expects over 50 KFC restaurants to be opened this year, bringing the number of outlets to 680 nationwide.
"We aim to open one KFC branch per week this year," said Ms Waewkanee, adding that the company has more time to focus on taking care of its franchisees, brand building and business plan after restructuring its business model to solely function as a franchiser.
But in some countries like the US, UK, Australia, South Africa and India, Yum will retains its role both as a KFC operator and franchiser.
With its role as a franchiser in Thailand, Ms Waewkanee said the company is building a clearer strategy, focusing on digital, customer focus, marketing and delivery service.
Currently, KFC is Thailand's market leader in terms of delivery service offerings. About 10% of its sale comes from delivery.
"We're now seeing a remarkable change. About 40% of our customers requesting deliveries did so via the digital channel in the first quarter, up from 23% in 2013," she said. "KFC's delivery rate grew by 17% last year."
KFC will also relaunch its website this quarter, on top of efforts to open branches closer to residential areas.
Currently, there are 250 KFC branches that provide delivery service. The company increased that number by 22 branches last year. The company plans to double the number of KFC branches that provide delivery service to 40 this year.
KFC's delivery business continues to grow because of new condominium developments and the increased need for convenience, she said.
Ms Waewkanee said that digital delivery may attract more millennials to order food during the week, a shift from the family segment, which tends to order at the weekend.
KFC has operated in Thailand for 33 years. KFC's penetration rate in Bangkok has reached 90% over the past three months.
And despite the large number of competitors, the company still sees room for growth nationwide.
"The market for quick service restaurants is growing because of rapid urbanisation. But urbanisation in Thailand remains low at only 50%," she said.
Offering innovative menus is another part of the company's strategy to attract more customers this year, said Ms Waewkanee. The company will launch more menus in the second and the third quarters to that end.
"The frequency of launching new menus will not increase, but each menu we launch will stand out from the others, offering enough attractiveness for customers to take photos and share them with their friends. Delicacy may not be the first factor in how consumers make decisions," she said.