Many Entrepreneurs should be well aware of the importance of Food Delivery, when consumer behavior changes which is the ‘survival’ of restaurants today. But go back a few years ago when COVID-19 hadn’t started as its impact to food delivery as popular these days. There was a new street food brand that had become a rising star, until now, it owns 85 branches already. Believe it or not, this remarkable achievement took only 2 years !?
Today It’s a great opportunity today, that ‘Khun Bes-Siruwat Chatchawan’ shares success lessons, creator of billion worth popular brand of Papaya Salad, ” Tum Mour ”, Executive Director and Deputy Chief Business Officer of Thai brand called Zen Corporation Group Public Company Limited, who is also behind the brand’s success ‘Khiang’.
Initiative of ‘Khiang’’ Street Food brand for delivey
‘Khiang’ chose street food as ‘ready-to-cook menu’ of what Thai people are familiar with and can eat all the time as its standout point
I must say that Zen group businesses are mostly in department store branding such as ZEN, AKA, Tummour, Lao Yuan or On The Table. Personally, I received this preposition approximately 2 years from the view of sales growth. In the past our delivery got only 5 percent, but when it reached to 10, the new preposition was the sort of food and the location were not suitable for delivery with its proportion of rental and costs.
The thing is that there are restaurant designed for dine-in in the first place like our brand we got was AKA – buffet dining, ZEN – sushi cuisine etc. Especially for the type of food is not suitable for delivery. Another thing what we found was inconvenience for rider to pick up food at department store as the location was not meant for delivery service. We also found challenge of Gross Profit charge, even packaging wasn’t designed for delivery as well.
Rental wasn’t match with income, these brought us to rethink of what we want for long-term sustainability. It brought us to create new brand with its aim to delivery. This is the story of Khiang by Tummour designed at the beginning of hypothesis of 50% revenue from delivery – where should our restaurant locate? What is the maximum of rental? And What kind of food are we going to sell?
Location and function of Khiang, every branchs must be in trade zone that reaches a large number of customers focusing on delivery rather than dine-in, easy for rider to pick up and deliver. Do not focus on sitting and eating. But focus on delivery for the rider to get – send easily
Choose to do what you’re good at not catching up on trend
“At that time our preposition was we don’t make trendy food because what is on trend mostly be ‘Red Ocean’ come with many competitors and trend will come and go. But the market that we want to get in was ‘Blue Ocean’ which is more sustainable.
“The reason of choosing to do branding of ‘Khiang’ as read-to-cook menu was first important thing as our profession. I think spending time before doing something, entrepreneurs must always have to ask themselves first is that what we’re good at. Then when I asked myself and found that I’m good at Thai cuisine as every would recognize me very well on that and remember Zen in the matter of quality, we choose to put menu of read-to-cook that Thai people could have all the time like stirred-fired basil menu – level up for everyone to taste it standardly with the taste stability of every dishes. With fast delivery and perfect temperature to customers and functional design of packaging set as standard to every branches.
Strategy to go – unlock secret to success
We have only started for 2 years to level up street food like ‘Khiang’ with more than 85 branches. And before the end of 2021, we expect to have 150 branches (only within 3 years) Khun Bas stated confidently that Zen group also expect for Khiang’s distribution to reach 1,000 branches in the future.
Asking about key success of ‘Khiang’ Khun Bas stated that it depends on Research till you found the influent trend of Street Food & Delivery with your experience that you got so far formulating to ‘precise step’;
- Think all around like when I know at the beginning that I will build up leading brand called ‘Khiang which will launch severy branches throughout country. After knowing the scale of what I was going to do with preparation of every parts, for example, inventing and manufacturing Pre Mix Sauce or special sauce of the brand to maintain quality of food in every branches, selecting package that answer our usage like possibility to put in microwave, perfect carrying for eating in side a car, environmental friendly with small spoon for the convenience in dining etc. Restaurant function – focusing on delivery rather than dine-in
- Restaurant location – primary strategy – In addition of having a rental matches income and rather making the price structure to meet GP charge. This will save the rental such as the rent of shophouse or patrol station which is several times less compared to renting space in the mall. It helps saving costs and enable for faster branch distribution.
- Location in Trade Zone – community of million users like shophouse nearby village, patrol station with Convenience Store as sport for customers to come by. Its convenient provides rider to pick up and deliver as he could make a promise to customers to deliver within 30-45
Leave this to think – No more COVID-19
“Do not trust that delivery will sustainably last because this pandemic will not last forever either. If Covid-19 was over, customer may come back and enjoy dinning at restaurant. From now on what brands and restaurants should keep in mind is to precisely adjust proportion of income between dining at restaurant and delivery. Hence brands and restaurants would come back and brainstorm on how we are going to survive in long term as the mentioned to seperate dine in and delivery suitably fit with your own strategy.
Suggestion before start up your business
“For all entrepreneurs, I would like to leave you the matter of good info researching to think before start doing something like what Thai people love to eat, what is the most popular dish, how much average of Thai people income etc. Endeavour of searching information as the most you can get is what I think entrepreneurs should prepare because the more worsen situation of economy’s gone, I would rather not recommend small business to do – if it doesn’t work then change, Am I right?”
“But what we could do most accurately and not jumping into passion stuffs, I could say that right now I’m salling stir-fried basil menu, you could see many restaurants have turned to do it as well, Am I right? As first this should be like Blue Ocean in business but it turned to be Red Ocean for small entrepreneurs. As such this got to see The profession of them that actually you are good at making noodle soup, but when you see stir-fried basil menu became popular, you dicided to start selling it as well. Literally, you should do what you are good at and make it the best. I would like to leave you for this like homework to search for more informations before you start doing something.”
Did You Know?
Model of Khiang is categorised into 2 forms – Standard and Low-Cost, consists of 8 types; branches in food court, community mall, patrol station, Tesco Lotus, MRT station, shophouse, stand-alone, department store distributing throughtout Bangkok and important economic cities of other provinces such as Chiang Mai, Hat Yai etc.