Thailand’s Mos Burger boosted by a capital injection
BANGKOK, NNA - Japanese hamburger restaurant chain Mos Food Services Inc. has boosted the capital of its Thai subsidiary by about 200 million baht ($6.5 million) in a new marketing strategy to expand its network by up to 90 outlets in eight years with an annual sales target of 500 million baht within four years.
Pitharn Ongkosit, president of Mos Food Services (Thailand) Co, said he has acquired a 75 percent stake in the company, increasing its capital from 6 million baht. This boost will be used to kick off online order and delivery services and new promotional activities.
He said on Thursday that he aims to raise the ratio of total sales from delivery services to 40 percent from the current 13 to 15 percent. As the first since his new investment, a new Mos Burger store will open in two months. Pitharn plans six new outlets this year, expanding the chain to 14 stores.
Pitharn is planning to develop new stores at an annual rate of 9 to 12 by injecting 30 million baht every year, he said. He will concentrate on large-scale commercial facilities in Bangkok in the next few years and then expand to remote tourist spots including the provinces of Phuket and Chiang Mai and the resort city of Pattaya. The chain aims to establish 80 to 90 outlets in the next eight years, 55 to 60 percent of them in Bangkok. The average store space is expected to be 120 to 150 square meters.
Mos Food Services (Thailand), which opened its first store in the Central World Plaza commercial complex in Bangkok, is operating eight stores now at such shopping malls as Terminal 21 and Emporium. Its expansion project stalled in 2016 when the local partner at the time canceled his contract, but Pitharn became a new partner in April to resurrect the plan.
Pitharn, who also runs apparel and cosmetic retail operations, said 90 percent of the chain’s customers are Thai. His new promotional activities will target customers aged between 15 and 45.
Thailand’s hamburger market is estimated at 10 billion baht, with an annual growth of 4 to 5 percent. Mos Burger is aiming to boost its share of the market, dominated by two big players, from the current 1 percent to 10 percent in eight years, according to Pitharn.
To emphasize its Japanese origin, the Thai subsidiary has introduced the sukiyaki-based “Fujiyama Burger.” It plans to come up with a new menu every one to two months.
Mos Food Services also has outlets abroad in China, South Korea, Taiwan, Singapore and Indonesia. It will open a store in the Philippines in November.