Food Passion, the operator of Bar B Q Plaza and Joom Zap Hut restaurants, plans to expand Red Sun Korean eatery in Southeast Asia by 2021 after acquiring the business earlier this year.
Chataya Supanpong, Food Passion's chief engagement officer, said Red Sun has potential for growth because of the growing popularity of Korean food and the Red Sun brand.
"We looked for a Korean restaurant to acquire as we wanted to enter that segment," she said. "Red Sun's customer base starts from age 16, younger than that of Bar B Q Plaza and Joom Zap Hut. This can help us do cross-membership marketing."
Food Passion is a major shareholder of Food Sun, the operator, after it acquired a 74% stake earlier in the year for an undisclosed amount from the major shareholder, Noppawin Rodrin, whose stake was reduced to 26%.
Founded in 2013 with registered capital of 7 million baht, Food Sun has 10 branches in Bangkok and one each in Pattaya and Nakhon Ratchasima. Last year it had a 5% market share in the Korean restaurant business, totalling 2 billion baht.
Mr Noppawin, Food Sun's 40-year-old chief executive, said the company aims to have sales growth of 40% to 150 million baht by the end of 2019 after gaining Food Passion as a shareholder.
"Food Passion will help us approach big retail landlords and expand sales from delivery, which is a huge market," he said. "As Red Sun's menus mostly involve boiling, we will introduce new menu items like rice boxes for delivery."
Mrs Chataya said Food Passion aims to open 4-6 new branches for Red Sun in Bangkok this year. A franchise platform will be designed to expand the Korean restaurant in the overseas market.
Food Sun has the right to open and manage the Red Sun branch in Thailand and worldwide except in China, South Korea and Cambodia.
Mr Noppawin said potential overseas locations for Red Sun include Indonesia and Malaysia as Korean food has become a trend, similar to Thailand.
There are no Korean food chains with at least five branches in those countries, he said.
"We plan to introduce non-pork menus in Indonesia and Malaysia and will finalise either franchising or investing on our own," said Mr Noppawin.
"We are setting up a team for franchising and will work with Food Passion to study the overseas market."
Mr Noppawin said Korea-based JK Food, the owner of Red Sun restaurants, is interested in opening a Korean sauce factory in Thailand to save on import costs from Korea.
Last year Food Passion posted 3.8 billion baht in revenue, up 3% from 2017. The company is aiming for 6% growth in 2019.
Key drivers will include new branches of Bar B Q Plaza, the Red Sun acquisition and expansion, and the launch of two new brands last year -- Charna and Space Q.
