Leftovers Have Value; Dispose of Them Systematically and Your Restaurant Will Get Something in Return
May 10, 2021
In your business, how long have you failed? We believe that the spread of Covid-19 in the new wave must be the storm for restaurant operators to fight. It is so sad that some entrepreneurs need to close the businesses. At that time, many of them may be discouraged to move on.
If it is the truth, we would like you to read a story of a young entrepreneur.
He suffered many had trial and error. He invested in many businesses isetbacks and broke for up to 15 times. He stand up in a smart way. He is able to develop the well-known noodles franchise like ‘INDY hot pot braised noodles’ Nowadays, there are more than 400 branches throughout the country. We believe that the story of ‘Khun Teay – Kasempong Huangching’ will be the passion for those who would like to fight!
Failure for 15 times…but never defeated, finallyhe is successful
INDY hot pot braised noodles was established 5 years ago. In the past, this guy had trial and error. He invested in many businesses including Isaan food, fried meat boil, fried banana dipped with honey, selling fruits, rice with fried egg, grilled pork, sandwich, computer peripherals shop, soybean milk, Thai traditional coffee, grilled squid and popcorn, etc. Every time, there is no success at all. Of course, when he experiences failure for many times, the thing he feels is discourage.
“In one aspect, I was very upset. I feel depressed. At that time, I was feeling very bad. I don’t even have money to buy milk for my kid. Total earning from sales both capital and profit is only 800 Baht. On that day, I feel very sad. What can I do to make my kid and my family be comfortable? At that time, there is no choice. The best choice is to fight. I need to continue fighting without stop.”
“It is my luck that my wife is confident in me. She is like a friend and always gives the encouragement to me. My wife used to be one of the top management in a large company. As she has confidence in me and would like to make a successful business, she takes risk for the future. She resigns from the company. She tastes her willingness for this investment. Then, she develops the INDY hot pot braised noodles with the capital of only 3,000 Baht. At that time, there is no future. How will this amount of money with the noodle shop be successful? But she is confident in me.”
After fighting with obstacles and failures for many times, I try my best without giving up. The wound throughout the career part is the lesson for Khun Teay to do business in a clever way. Nowadays, ‘INDY hot pot braised noodles has grown to be the noodles franchise brand. There are 440 branches in Thailand. We also expend the branches to other countries and generate the income of more than 100 million Baht. All in all, it takes only a few years.
“For totally 440 branches, we manage 2 branches by ourselves. The rest are all franchises. We have just opened the Cambodia and Laos branches. We would like to be the master branches in each country that we expand in the future. Right now, we are studying and testing the market. We will concise the systems first.”
Because I used to fail… there is the lesson in building the business in a creative way
“After making the business failed, I see my mistakes. At that time, I think food business is great because people need to eat. I have brought the recipe of Ratchaburi noodles from my grandfather and grandmother. But amidst so many noodles shop, we would like to make our restaurant different from others. We think that we should try to cook the hot pot noodles so that customers can have a hot noodle. There are 3 types of dipping for their selection. We use the utensil from my home. Each noodle bowl is different. We use the name ‘INDY hot pot braised noodles.’ With good location and new menus, a large number of customers come to our restaurant. They also take photos and share in the Social Network. When we can sell very well, many people contact us to buy franchise.”
No hurry to sell franchise, brings great success
Although there are many people who are interested in buying franchise, Khun Teay is not in a hurry in sales. What he does is taking more time to study.
“I have made failed business. I think that doing the franchise, we need to bring the reliable person to do the business with us. Then, we will be successful together. Therefore, if I don’t understand this business, I may bring the failure to them. If this capital is the last amount of money in their lives, I will feel very depressed.
One thing which is my mistake for long time, I do everything with force. But I did not search for knowledge about such business. Therefore, when we do the franchise, I need to search for knowledge so well.”
Khun Teay takes up to 8 months in attending the Department of Business Development course. He learns about principles of franchise business. He uses such knowledge to develop the system of INDY hot pot braised noodles.
“If you would like to leave the shop, right now, we have a very good business. If somebody would like to buy franchise, please ask yourself first. How much do you understand? What is franchise? What are the things that you will sell to the buyers? What will you care after that? And for questions, there are many. For example, why there are not good sales like franchisor? Why does he generate profit? When franchisee pays money to franchisor, that’s what he expects.
How do we manage to have the profit? You need to know the complete and details. If not, please be prepared. The best thing you can do is selling franchise. After that, please prepare to get the criticism from franchisee. In the long-term, we cannot make it success in the sustainable way.”
Recommendation from those who would like to invest in franchise
“On contrary, those who would like to buy franchise need to consider the real needs. For example, the type of business is buying and selling, wholesale or retail. Franchise is the sales of system business, management, sales of image and customer care. Thus, taking a certain amount of money to invest in certain business, investors need to study the information clearly. How does the company or franchise you want to invest answer your doubt or not? What is the system? Is there any franchisee care for the success together, etc.?
“If they are unable to answer, please reconsider the details. Keeping money in the transition period, we will go through the Covid. It may be the only chance you have. So, I would like you to check for the details. It is lucky that nowadays, there is an easy and fast access communication. You can search everything from the Internet. You can consider which franchise order is interesting. How reliable they are? Is there any institutes guarantee? And what is the concept of the franchise brand management? It is not that they invest for 3 months. Then, they close their businesses and sack you. What do you do?
Distinctive point of INDY hot pot braised noodles
We ask Khun Teay about the distinctive point of INDY hot pot braised noodles as a franchise brand. We can conclude the details as follows:-
It is the brand which is the middle of ‘Product Franchise’ and ‘System Franchise’. We sell both products and systems. I have the product which is lock one. It is necessary to buy it directly from the brand, for example, concentrated leaven and spice. For other ingredients, INDY hot pot braised noodles uses the contact system with suppliers. They are reliable. There is convenience for customers. Brand also prepares the customer care systems in many aspects. For example, there is advance business plan for 3 months. There is the new menu, marketing and public relations all the time.
Use the capital from 19,900 -159,900BahtIt is divided into 3 main packages. Started from 19,900 Baht, this package is suitable for customers who have certain devices. They would like to have freedom. For example, they would like to sell in the street restaurant. They can sell in the department stores food court and gas station. For the 39,900 Baht package, it is suitable for the trolley or noodles counter. We prepare almost all devices except gas, tables and chairs. For package No. 3, it is the main package priced at 159,900 Baht. This package is suitable for investors who don’t have much time. They would like to ask the company to do everything for them. They just have the location.
The brand will send a team to do the analysis. If it passes the criteria (Analyze from the density of population and a number of competitors in the nearby area), they will be able to open the restaurant. If it is not suitable, the brand will search for suitable area for proposing the customers.
Struggle with Covid-19
From the time we struggle from Covid-19, it is more than 1 years. INDY hot pot braised noodles takes part in taking care and supporting the franchisee. We wish to pass the Covid-19 struggle together.
“Of course, the problem from Covid comes from lower number of customers who eat in the shop. But the company expects that this situation may happen. From the very first news in Wuhan, I think it will be ended in 5-6 months. I don’t think it will last for the New Year. As I said we need to answer the franchisee, what do you pay money for?
Therefore, in this situation we needto have the role in taking care and support all branches to go through the crisis. The thing which we expect is delivery. It will play an important role to help the business survives. We invest by asking the professional photographer to take photos of food. Each menu will be the most beautiful. We will send these photos to each branch to decorate in platform for food ordering and social media in each branch. It will attract customer interests and increase sales. We still focus on the importance of packaging so that customers remember our brand. We post the INDY hot pot braised noodles logo. We use the contact, phone number or the shop page that lets customers come again.”
“Apart from adding technique to investors, equip with weapons to enter the racetrack. We provides the measures. Various branches follow in many cases. For example, how do we prepare the protective and cleaning devices? What shall we do if the infected persons use our service?. For example, we close the branch and complete the Deep Cleaning. We manage the risky employees to have the medical check-up. Moreover, we inform the customers through the existing address, etc. We bring confidence to customers so that they can continue their operations as fast as possible. We have made as the documents and VDO clips to communicate with our members continuously.
At the latest move, we have added theDriveThru service. In this way, customers do not need to get off the car. We try to determine the measures and cope with such problems before it really happen. These branches will know what to do in order to bring confidence to customers. We try to find other ways to solve problems as well. I think following the news and the crucial of data is very important for the world nowadays. Then, we will be able to plan for the situation and search for the right opportunity.”
Turning Crisis into Opportunity
As he follows the news all the time, Khun Teay tries to find the second plan in his business. He thinks that the Covid situation will impact the restaurant business. That’s why he makes the ready-made noodle under the brand ‘Tun Siam by INDY Hot Pot Braised Noodles’. There are 4 tastes. We use the sterilization in the package. There is noodle, meat and soup. Just put in the microwave or boil. Then, it is ready for eating. You can keep them for up to 2 years without having to freeze.
At first, we plan to sell in the country and in our branches. But when we join the booth in the exhibition, we have a very large order. In the international market, Hong Kong is the main one. Right now, the production capacity is not enough for sales in the country. It is a good example in searching for opportunity and adapt ourselves according to the situation.
Giving encouragement to other entrepreneurs
“I would like to tell you that when there is the world crisis, you may probably lose something. Your loved ones may pass away. Your business may fail. But many things still left. Don’t forget. I would like everyone to see what is left. Then, you should develop the rest thing to advance. Don’t think about something you lose because you cannot get it back. I would like you to focus on what is left and try to search for opportunity. There are opportunities around you. Although there is crisis, there is opportunity. Just search for it.
Moreover, I think that in the misfortune of the world crisis, there are many calamity. It is our luck that we have the opportunity to study. Suppose you are a businessman and you take the business through this point, other problems are just small. I understand that everyone is in trouble. But I would like to give the encouragement. Please be patient. If you can go through the Covid plague, you will see that other problems like falling sales and increased products price by suppliers. These problems are just small ones if you can pass this point.
TIPS for Operations under Covid Situation
Recognize the importance of delivery through the food photos and packaging. These things show the branding that makes customers remember our restaurant.
Focus on the importance of food quality so that the business goes on in a sustainable way. Reduction of food quality under this situation will make customers feel upset and not buy from you again. So, your business is not sustainable.
Communicate about the measures in keeping clean and safe. This can be done via all channels. Post the photos and timetable for cleaning the shop to bring confidence to customers.
If there is the case that needs to take action, please close the shop to clean and sterilize urgently. Please manage the risky employees to have the check-up, do the quarantine and communicate with customers in a timely manner.
Search for new opportunities and methods to increase sales such as adding the Drive Thru service and coming up with new products to add more income.
Data is important. Please follow up the news and search for the second plan in advance.