Zen Corporation Plc, the operator of Zen and Tummour restaurant chains, vows to continue acquiring food and food-related businesses and expand its street food models to balance business risk.
Boonyong Tansakul, the company's chief executive, said the company is buying more recipes of signature dishes from food operators in 70 provinces to sell through its new street food brand -- Khieng Tolung -- selling signature menus for breakfast at a price of around 60 baht. Currently, there are four Khieng Tolung virtual restaurants and six new locations will be opened in the second half of this year both under the virtual and full restaurant concepts.
In addition, the firm recently launched another street food brand -- Khieng Kaeng Tai (southern curry) restaurant -- selling southern-style dishes at a PTT petrol station in Bang Phun, Pathum Thani. The company plans to open two other Khieng Kaeng Tai restaurants, each covering 40 square metres, at PTT stations on Nawamin Road and in Muang Thong Thani. The company also plans to sell both Khieng Tolung and Kheeng Kaeng Tai franchises in the second half of this year.
"We are still focussing on the street food business because it is not affected by the pandemic. We can open 21 new Khieng, made-to-order street food branches in the first half of this year because people need food at a price that is affordable."
According to Mr Boonyong, due to street food stores being located outside malls, it is a perfect model that has good sales be it dine-in, delivery or takeaway.
As well as street food, the firm will extend its retail business after it spent 60 million baht to acquire a seasoning factory in April this year. Revenue from retail business will continue to grow and is expected to reach 100 million baht this year, up from 12 million baht last year, after launching more seasoning products to the market late this year, said Mr Boonyong.
Zen reported total revenues of 1.11 billion baht in the first half of the year, up by 14% over the same period last year. However, it posted a net loss of 38.6 million baht for the first half, improving on a 125 million baht net loss in the same period last year.
