Burger chain looks to revitalise via franchises

Burger chain looks to revitalise via franchises

From left, Mrs Chamchan and Mr Supak. Steak Group, the owner of EZ’S sausage and the operator of Siam Steak burger chain, announced the expansion of its business via the franchise model to turnaround business.

Siam Steak Group, the owner of EZ’S Sausage and the operator of the Siam Steak burger chain, has expanded via the franchise model to turn around a business spluttering from the pandemic.

Managing director Supak Muennikorn said the company wanted to emphasise expansion through the franchise model and online channels to reduce risk.

He said 90% of the company’s business now relies on schools and universities, which have shifted to distance learning and online courses.

According to Mr Supak, after the Covid-19 pandemic broke out the company re-positioned its business, opening Siam Steak outlets via the franchise model last year to test the market response.

“We will freeze our own investment and instead put more focus on the franchise model,” he said.

There are four Siam Steak franchise stores in Bangkok, Pathum Thani and Nonthaburi.

Another eight stores are set to open soon in communities, petrol stations and standalone locations in Bangkok, Surat Thani, Surin, Lop Buri and Chai Nat.

Siam Steak provides five models for its franchisees ranging from a kiosk measuring 7.5 square metres to a shop measuring 60-80 sq m.

The franchise fee is charged between 200,000-700,000 baht. Siam Steak Group was established by Chamchan Muennikorn in 1975.

It introduced burger products to the Thai market and sells bread and sausages wholesale to five-star hotels.

Mr Supak said the firm has a waiting list of 100 applicants for a franchise. The firm will expand its franchise business outside Thailand to Cambodia, Laos, Vietnam and Myanmar, he said.

“It is hoped the franchise model will raise our sales to offset the drop in the school channel. We forecast that sales portion of the school and university channel will decline to 40% of the total, while that from the non-school channel will rise to 60% from the current 10%,” Mr Supak said.

Mr Supak said he expects the expansion of restaurant chains via the franchise model to become more active in the second or third quarter of next year.

More restaurant chains are expected to tap into opportunities from the franchise model, while people left unemployed due to the pandemic will also want to be entrepreneurs and apply for food franchises.

“The popularity of the franchise business, with fees at the level of 100,000 baht, is expected to continuously increase, particularly in the second or third quarter of next year,” he said.