Thai firm dishes up a fast-food menu

Damon Kitney
JULY 22, 2014
THE AUSTRALIAN
THE $US11 billion ($11.72bn) food arm of Thailand’s largest agriculture-based company wants to establish up to 500 Thai restaurants across Australia and move further into the booming ready-to-eat meals segment as its Australian investments grow to more than $200 million over the next five years.
Charoen Pokphand Foods chief operating officer Pisit Ohmpornnuwat will join Victorian Agriculture Minister Peter Walsh and Thailand’s ambassador to Australia Maris Sangiampongsa today in officially opening the company’s first Australian restaurant, 1000Wat, in Emporium Melbourne.
The company’s regional general manager, Richard Lovell — who also will attend the opening — said the group wanted to expand 1000Wat to up to 500 outlets nationwide, including rolling out a franchise model in two years.
“The best-practice model for restaurants and franchises globally is in Australia,’’ he told The Australian yesterday. “Over the next four years our target is 300 to 500 stores with a modern Thai, fast food, great value-for-money offering.’’
He said the group would open more stores in Melbourne later in the year before moving to other state capitals. Up to 10 stores will open during the next 18 months.
CP Foods is part of the CP Group, which has global turnover of $US41bn and operations in Asia, Europe, North America and the Middle East as well as Australia. The group has holdings in telecommunications, motorcycle production and commercial property management. It also owns the 7-Eleven franchise in Thailand and fast-food chains Chesters Grill and Five Star Chicken in Thailand.
“After 28 years’ experience in Thailand and following our expansions into markets like India, Vietnam, Cambodia and Myanmar we want to grow our fast-food concept in Australia,’’ Mr Lovell said.
The company established a small head office in Melbourne in 2012 and has since spent more than $100m mainly on the purchase of fresh food and processed food products for export.
It views Australia as a prime source of red meat, valuing the nation’s reputation for premium quality. Almost half its spending so far has been in Victoria.
Mr Walsh said yesterday the Victorian government welcomed the investment from CPF.
Mr Lovell said the company would double its spending in Australia in the next three to five years. It is exporting 4000 ­tonnes of Australian meat into Thailand and other Asian markets.
“We are always looking at opportunities across all the market segments in Australia,’’ he said, noting the company was an under-bidder in the race for Bob Ingham’s poultry processing empire that was sold in 2012 to private equity giant TPG.
He also noted the company wanted to expand further into the ready-to-eat meals segment.
The group has a joint venture with Victorian food business 7 Chefs to supply the Authentic Asia range of frozen meals to Woolworths, Costco, 7-Eleven and IGA stores.
“We want to move more downstream into ready-made meal manufacturing in Australia,’’ Mr Lovell said.
“Our focus in the future will be the chilled meals space.’’
Earlier this year the group appointed Melbourne creative agency Sense to manage its brand advertising, design and digital work in Australia.
The Authentic Asia brand will be a focus for that work over the rest of the year.