Thailand's CRG invests 500 mil. baht in cloud kitchen services

15, Jul. 2020

Central Restaurants Group Co. President Nath Vongpanich (L) and Born Project Co. President and TV host of Krua Khun Toi, Tripop Limpapath at a press conference for
Central Restaurants Group Co. President Nath Vongpanich (L) and Born Project Co. President and TV host of Krua Khun Toi, Tripop Limpapath at a press conference for "Every Foood" cloud kitchen food delivery project in Bangkok on July 13, 2020. (NNA)

BANGKOK, NNA - Thailand’s Central Restaurants Group Co. (CRG) has teamed up with brand identity company Born Project Co. to open cloud kitchens to produce food and drink for delivery, as the country's diners increasingly turn to e-commerce.

CRG unveiled the new joint project, "Every Foood," in which it will invest 500 million baht ($15.9 million).

CRG plans to establish six to ten “Every Foood” cloud kitchen branches in 2020, and expand this number to 100 branches nationwide within five years, CRG President Nath Vongpanich said at its press conference on Monday.

CRG expects annual revenue of 100 million baht from the established kitchens this year, Vongpanich said. He expects the newly launched business to contribute 10 percent in the long run to the annual revenue of CRG’s food delivery business, which is currently worth3 billion baht.

CRG holds 40 to 50 percent of the first “Every Foood” cloud kitchen branch, which opened on July 7, while Born Project holds 50 to 60 percent, Vongpanich said. The stake held by each company will depend on market conditions in the future.

“With the shift of consumers behavior and the increase of more online presence, ‘Every Foood’ was created to support this demand,” said Vongpanich

Born Project Co. is known for its television program, “Krua Khun Toi,” hosted by company’s president Tripop Limpapath. For seven years, the show has introduced local restaurants and culinary goods to the viewers, and has earned a reputation for food reviews and critiques.

The first branch of “Every Foood” is located in Nakniwas Road, offering food menus selected by Limpapath to residents and office workers.

Born Project Co. has also been hosting annual food fairs with local restaurants selected through “Krua Khun Toi,” said Limpapath, adding that he hopes to apply this concept at cloud kitchens to tailor the offerings to meet the tastes of specific areas.

“Each kitchen branch will consist of different restaurants,” said Limpapath. “We see the importance of understanding the demographics of each location.”

“Every Foood” services will be available on CRG’s food delivery application, Food Hunt, and is also listed with other local food aggregators including Foodpanda, GrabFood and Lineman.

The coronavirus pandemic has fueled growth in the food delivery sector in Thailand, which Vongpanich estimated at 35 billion baht.

Meanwhile, the traditional restaurant dining has been shrinking. Kasikorn Bank Research estimated in 2019 that the country’s restaurant sector would earn around 480 billion baht revenue this year, but in January, it trimmed that prediction to 400 billion baht.