Bold bid for expansion by Food Capitals
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Food Capitals, Thailand’s franchisee for Domino’s Pizza and South Korean fried-chicken restaurant chain Kyochon, has acquired two companies for THB400 million (US$11.6 million) in a bid to expand both domestically and overseas.
It has spent THB289 million to acquire Osha Group’s food business in the US, with the remaining THB121 million for its takeover of Bangkok-based G Enterprise.
California-based Osha has five restaurant brands – After Osha, Lao Table, Osha Express, Osha Thai and Osha Thai 3rd Street – while G Enterprise’s four restaurant brands are Chingcha Chalee, Moom Muum Park, Pirate Chambre and Umami Falabella.
Food Capitals CEO Tanakorn Angpubate expects the acquisitions to boost the group’s revenue by more than 50 per cent from THB714 million last year – following five years of red ink.
The company has also set aside THB200 million to open two restaurants in Thailand and another two in the US.
Food Capitals’ brands include Domino’s Pizza in Thailand and Cambodia, Kyochon in Thailand, and Red Planet Hotels across Asia.
Questions & Answers
Q.What is the total investment made by Food Capitals for this expansion plan?
What is the total investment made by Food Capitals for this expansion plan?
Food Capitals spent THB400 million on acquiring Osha Group’s food business and G Enterprise. An additional THB200 million has been set aside to open new restaurants in Thailand and the US.
Q.How much of the acquisition cost was allocated to the US market?
How much of the acquisition cost was allocated to the US market?
THB289 million of the total acquisition cost was used to acquire Osha Group’s food business in the US. This company operates five different restaurant brands in California.
Q.Which specific restaurant brands has Food Capitals acquired in Bangkok?
Which specific restaurant brands has Food Capitals acquired in Bangkok?
Food Capitals acquired G Enterprise, a Bangkok-based company. Its restaurant brands include Chingcha Chalee, Moom Muum Park, Pirate Chambre, and Umami Falabella, for which THB121 million was spent.
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