How to build a street food delivery brand of 'Kheang', successfully expanding to over 80 branches in 2 years
As consumer behavior changes, many entrepreneurs should be well aware of the importance of Food Delivery, which is the 'survival' of restaurants today. But looking back a few years ago, before COVID-19, the food delivery trend had not yet become this popular, there was a new street food brand that was born and became a rising star. Currently, there are more than 85 branches. Can you believe that this remarkable success took only 2 years!?
Today we have a good opportunity to talk and open up lessons of success with'Khun Bass-Siruvattana Chachawan', the creator of the billion-dollar somtam brand beloved by the public, 'Tum Muea'This young man is also the Executive Director and Vice President of Thai Brand Business ofZen Corporation Group Company Limited (Public Company)The people behind the brand's success'Chopping board'Also
'Kheang', a street food brand invented for delivery
“I must say that in the ZEN Group, most of our businesses are in department stores.Whether it's a brand like ZEN, AKA, Tam Mua, Lao Yuan or On The Table, I received this challenge about 2 years ago from observing sales. In the past, we sold less than 5 percent of our delivery. When it started to hit 10 percent, the new challenge was thatThe type of food and our location are not suitable for delivery.With the proportion of rent and labour cost”
“There are restaurants that have been designed for Dine In from the beginning.For example, in our existing brands, AKA is a buffet, while ZEN is sushi, etc., the food they sell alone is not suitable for delivery. What we still have to face is the inconvenience for riders who have to pick up food in the mall and the location that is not conducive to delivery. We also have to face the GP (Gross Profit = commission that restaurants have to pay to food ordering apps).
Even the packaging was not designed for delivery. The rental cost of the place did not match the income, so we had to think again that if we wanted long-term sustainability, we would have to come up with a new brand that focused specifically on delivery. This was the origin of the brand 'Khiang' (Khiang by Tummour).Which was designed from day one that if 50% of sales were to come from delivery.Where should our shop be? How much should the rent be? And what type of food should we sell?”
Choose to do what you are good at…not follow the trend.
“Our challenge at that time wasWe don't choose trendy food because anything that follows the trend tends to be a 'Red Ocean' where there are many competitors and trends come and go.But we want to enter a more sustainable 'Blue Ocean' market.”
“One important reason for choosing to create the ‘Kheang’ brand, which is a made-to-order food brand, is because of our own expertise. I think that when making a decision to do something, entrepreneurs must always ask themselves first:What are we good at?At that time, I asked myself and found out that I was good at Thai food. Everyone will remember me well in terms of Thai food and remember ZEN in terms of quality. So we chose to take a la carte dishes that Thai people often eat, such as Pad Krapow, and upgrade them to be accessible to everyone with standards. Every dish tastes the same, can be delivered to customers quickly and at the right temperature, and the functional design of the packaging is the same in every branch.”
Strategy for placing chess pieces…unlocking the secret to success
Today, having been around for only 2 years, the street food brand 'Khiang' has already reached 85 branches, and by the end of 2021, it is likely to expand to 150 branches (in just 3 years). Khun Bass also confidently stated that the ZEN Group aims to expand 'Khiang' to 1,000 branches in the future.
When asked about the key success factors of the 'Kheang' brand, Khun Bass said:It is about doing research until finding that the trend of Street Food & Delivery is gaining popularity.Adding the accumulated experience, you can 'place your chess pieces' accurately as follows:
Think comprehensivelyFor example, when we knew from the beginning that we would create 'Kheang' as a flagship brand that would expand to many branches nationwide, when we knew the scale of what we were going to do, we were prepared in every aspect, such as:Invent and order the production of Pre Mix Sauce or the brand's own special sauce to maintain the quality of the food to have the same taste in every branch. Choose packaging that meets the usage needs.For example, it must be microwavable, can be eaten in the car, must be environmentally friendly paper, the spoon must be a short spoon, not a fork and spoon, for the convenience of customers in scooping and eating, etc.
Store functionsFocus on food delivery rather than dining in
The location of the shop is an important strategic point.In addition to having rental fees that match income, the price structure can compete with GP fees. In addition, when rent is saved, such as rent for shophouses or gas stations, which is many times less than renting space in a shopping mall, it also helps save costs and allows for faster branch expansion.
Must be in the Trade Zone, which is a community area with many users.For example, shophouses near housing estates, gas stations, and convenience stores are points where a large number of customers can be reached and where it is convenient for riders to pick up and deliver products, so it is possible to promise that food can be delivered to customers within 30-45 minutes.
Something to think about…on the day when COVID-19 may not exist.
“Don’t trust that delivery will be sustainable because COVID is not going to last forever.If one day COVID-19 is over, customers may want to come back and enjoy themselves at the restaurant.What brands and stores need to think about today is:Optimizing the income ratio between dine-in and deliverySo in the long run, brands and individual stores will have to revisit and consider that:What will we survive on?We need to properly separate the 'dine in' and 'delivery' portfolios and develop our own strategies.”
Advice before starting a business
“For all entrepreneurs, I would like to recommend doing good research before doing anything.For example, what do Thai people really like to eat? What type of menu do they eat most often? How much income do Thai people have to spend money, etc.Try to find as much information as possible to do your homework.I think that entrepreneurs should do their homework on this information first because the worse the economy is, I wouldn’t recommend that small entrepreneurs do it first and then change after they fail, right?”
“But how do we do it most accurately and not jump into something that is our passion? I must say that now that I sell Pad Krapow, small and large entrepreneurs have all turned to selling Pad Krapow, right? Instead of being a Blue Ocean, it has become a Red Ocean for small entrepreneurs. And now we have to look at the expertise of the entrepreneurs as well. In reality , you are good at noodles, but you saw that Pad Krapow is popular, so you turned to selling Pad Krapow?Or should you really do what you are good at and excel at it? I would like to ask you to do your homework and find information carefully before deciding to do anything.”
Did You Know?
The model of the cutting board shop is divided into 2 types:Standard and low costConsisting of 8 formats: branches in food courts, community malls, gas stations, Lotus, MRT stations, shophouses, stand-alone, and in department stores, spread across Bangkok and in major economic provinces such as Chiang Mai, Hat Yai, etc.
