Mcdonald's Thailand Smells Recovery

[george]

RESTAURANT

McDonald's smells recovery

BANGKOK: -- McThai, operator of McDonald's restaurants, believes the economy has bottomed out, with tourists returning, especially to Phuket and Samui.

"We saw positive signs from the improvement in the occupancy of hotels. Our stores in tourism provinces such as Phuket and Samui have rebounded in line with the tourism recovery," chairman and CEO Hester Chew said yesterday.

The recovery of the tourism business this quarter would help the company's sales this year to beat last year, he said.

McThai had targeted sales to grow by 20 per cent this year, |the same as last year, but the figure will be more than 20 per cent because of the impressive double-digit sales pace in the first nine months, he said.

The outstanding performance was driven by unit expansion, product introductions and sports marketing, he said.

McThai has opened eight branches nationwide in the first nine months and nine more will be launched this quarter.

"Despite the economic downturn, McThai will not stop growing. Our branch expansion this year is 17 units, compared to 13 last year," he said.

The company plans to open 13-15 branches next year, and projects sales to grow by more than this year.

A key success factor this year is the company's commitment with customers, as exemplified by the message of a balanced and active lifestyle, which the company has aggressively relayed to consumers since last year.

McDonald's provides a wide variety of food choices to consumers and informs them that they should eat food and burn off calories with exercise.

"At McDonald's restaurants consumers can select salads, yoghurt or milk, when they don't want to eat cheeseburgers. This is an example of menus that emphasise on the balanced and active lifestyle," he said.

Sports marketing has also helped consumers gain more experience in the balanced and active lifestyle.

McDonald's has entered into a three-year contract to sponsor the Thailand national football team as an official partner of the Thai Football Association under royal patronage.

The Bt30-million sponsorship starts next month and runs to 2012.

"We consider football as a mass sport and more popular in Thailand. It can respond to our balanced and active lifestyle," Chew added.

-- The Nation 2009-10-06

[basjke]

Thailand has 88 McD branches and they will open 17 new ones this year.When opening 20 % more branches it is not so difficult to have a 20% sales increase,but that has hardly anything to do with tourist figures going up.

[ilyushin]

Traditionally the tourist arrivals increase during October, November and December and I expect Micky D's to get some of the business. New locations located in key areas will certainly get the increase in business.

With Thai fast food being so good and cheap they will need to have good quality and cheaper prices to gain 20% growth.

[surangw]

McDonald's smells recovery

I smell something when driving by md's but I doubt its recovery

[Brigante7]

McDonalds is crap at the best of times but they are even worse in Thailand, not sure why.

Surangw is right, there is a smell from McDonalds but it sure ain't of recovery, and greasy food, fu_ck me.

Brigante7

[BSJ]

What kind of rabbit goes to Thailand and eats that sort of sh1t?

[gotlost]

McCrap

[Publicus]

Go Burger King!

[horsewell]

Atleast it almost seems that there is a salad in a Burger King burger. In Patong, Phuket we have 2 Burger Kings and 3 MacDonalds and 3 KFCs (all in walking distance from one another)... I remember about 4 years ago when the only KFC in Patong closed it's doors and they had a "Thai Thai" restaurant, which didn't last long.

When I can get a burger on the street made with real meat for 60B and Thai meal for about the same price, it's a rare day when I indulge in my childhood vice of the 200-300B fake meat burger! Most all you can eat BBQ and buffet places are about 200B / person.

[mca]

To my eternal shame I've always enjoyed McDs fish filet burgers.

[007]

McThai had targeted sales to grow by 20 per cent this year, |the same as last year, but the figure will be more than 20 per cent because of the impressive double-digit sales pace in the first nine months, he said.

Shouldn't be difficult, considering that they raised prises for many of their products (e.g. hamburger from 19 to 23 baht, double filet-o-fish from 55 to 65 baht (??)) by about 20% very recently. Raising prises by 20% can lead to 20% higher sales, if they can keep sales volumes up and costs low.. Simple 101 of economics.

Edited October 6, 2009 by 7

[egg]

Go Burger King!

l agree , ,,,, as far as good healthy junk food goes it takes some beating ,,

[Heng]

I'm sure anyone on the TV board could easily do a better job at being CEO at McDonald's. In fact, I wouldn't be surprised if he's actually a member here and is anonymously critiquing himself.

[lazygourmet]

[bkkjames]

McThai had targeted sales to grow by 20 per cent this year, |the same as last year, but the figure will be more than 20 per cent because of the impressive double-digit sales pace in the first nine months, he said.

Shouldn't be difficult, considering that they raised prises for many of their products (e.g. hamburger from 19 to 23 baht, double filet-o-fish from 55 to 65 baht (??)) by about 20% very recently. Raising prises by 20% can lead to 20% higher sales, if they can keep sales volumes up and costs low.. Simple 101 of economics.

While in principle this would be true if they had exactly the same number of customers. But by raising the prices it may cause some people to give it a miss.

If this guy wants to take the lead on the 'recovery and tourists are coming back campaign', what would be more interesting is statistics on the number of customers not sales. Suffice to say, hoteliers in Samui and Phuket would probably be a better source for the number of tourists +/-.

But by positioning himself this way, Mr. Big Mac got a chance to plug away.

[Meridian007]

What kind of rabbit goes to Thailand and eats that sort of sh1t?

The tourist kind. I haven't eaten anything from Mcdonalds (aside from 1 order of their breakfast eggs a while ago) for around 10 years, but a lot of the tourists that come here would never try street food, or any Thai food that isn't almost exactly like their own cuisine. I don't presume to understand it, but I asked a colleague of mine why he doesn't eat Thai food, and he said that he didn't come here for the food, and that he doesn't trust Thai restaurants and their strange ideas of what food is. This narrow view is held by many tourists I'm afraid.

Personally, I prefer Thai cuisine to most western food, but I think a lot of the budget tourists here tend to be quite xenophobic and ignorant.

As to discounting McThai's estimates of a rebounding economy, if they want to spin things that way, we should let them. If enough big companies start saying "economic recovery", people start to believe them, they start to spend more, and the economy recovers. This is not a bad thing...

[Donnyboy]

McDonald's provides a wide variety of food choices to consumers and informs them that they should eat food and burn off calories with exercise.

as opposed to eating?

[toptuan]

[tig28]

What kind of rabbit goes to Thailand and eats that sort of sh1t?

I don't presume to understand it, but I asked a colleague of mine why he doesn't eat Thai food, and he said that he didn't come here for the food, and that he doesn't trust Thai restaurants ......

There must be quite a few TV members who do actually eat Mcdonalds . All the bodies I see in there whilst passing cant be 100% tourists can they??? .... come on ... own up!!

I would be interested to learn why anyone in any part of the world would actually choose to eat the stuff -- but here it simply confounds me!!

[livinthailandos]

1. McDonalds Thailand Smells Recovery . Only thing I smell is grease and crap. Someone pointed this out already, you want a real idea on tourist recovery talk with the hoteliers but answers you get vary from

Brand vs Non Brand & Star Rating of Hotel

2. Personally agree with other posting I mostly eat thai food

3. Question for those of you out there in regards to mcdonalds & burger king, I haven't eaten either in a long time, I did notice when I did go eat it, main I can tell you I felt a heart attack coming on, from eating there food, its true eat there food and die early in life

[salty]

A full English (or Irish) breakfast for an extended period is also quite helpful in fast forwarding cardiac arrest.

[PoorSucker]

A full English (or Irish) breakfast for an extended period is also quite helpful in fast forwarding cardiac arrest.

Does that include a Stout?

[007]

What kind of rabbit goes to Thailand and eats that sort of sh1t?

The tourist kind. I haven't eaten anything from Mcdonalds (aside from 1 order of their breakfast eggs a while ago) for around 10 years, but a lot of the tourists that come here would never try street food, or any Thai food that isn't almost exactly like their own cuisine. I don't presume to understand it, but I asked a colleague of mine why he doesn't eat Thai food, and he said that he didn't come here for the food, and that he doesn't trust Thai restaurants and their strange ideas of what food is. This narrow view is held by many tourists I'm afraid.

Personally, I prefer Thai cuisine to most western food, but I think a lot of the budget tourists here tend to be quite xenophobic and ignorant.

That's interesting, cause in my case it's just the other way round. I ate Thai food only, back when I was a tourist in Thailand. But having lived here for seven years, my diet now is more like 2/3 western or western-style food, and only 1/3 Thai dishes.

[losworld]

There's nothing a Rotten Ronnie's Gut Bomb in the morning after a round of drinking .

[Payboy]

chairman and CEO Hester Chew

What's the Burger King CEO called then - Ivan A. Byte?

[Publicus]

What kind of rabbit goes to Thailand and eats that sort of sh1t?

I don't presume to understand it, but I asked a colleague of mine why he doesn't eat Thai food, and he said that he didn't come here for the food, and that he doesn't trust Thai restaurants ......

There must be quite a few TV members who do actually eat Mcdonalds . All the bodies I see in there whilst passing cant be 100% tourists can they??? .... come on ... own up!!

I would be interested to learn why anyone in any part of the world would actually choose to eat the stuff -- but here it simply confounds me!!

I myself see that the Thai diet has produced a LOS of large, strong, trim and fit people--not!

Before I left for this part of the world a prof I'd had who'd lived eight years on Taiwan specifcally advised me to "watch your nutrition." So I asked him what he meant, to which he said "get your usual balanced diet, especially protein and stay away from Asian fast food restaurants." I'd now add to pick out all of the million bones in each whole fish one almost always gets and to say to your Thai hostess that the three foot heap of rice she's still piling on the plate is quite enuff thank you.

Then there the Thai restaurants with their foot of rice on the plate with 10 tiny pieces of pork/chicken/shrimp/beef.

I spent two years in S Korea and saw few out of shape or oversized Koreans (very few) so I dunno whether its genetic or the food but pizza is more popular there than Mc, KFC or Burger King type places. It was essentially unanimous Korean food was either great or pure slop, so it was pot luck there until we got to know our way around (never order spaghetti there unless you like ketchup instead of sauce ).

Mickey D is raising prices and expects an increase of volume? TiT.

[rabcbroon]

I think it is so unfair to critisize Mcdonalds when they have so many health options now available. Me and the wife have lost lbs and lbs since the healthy option range was introduced. Pictures dont lie

[rabcbroon]

Sorry wrong picture

[Scott]

I know it's not really good for you, but I seldom pass one without stopping for a bite. Fortunately there aren't any close to where I live, so it's really a treat.

[Publicus]

Sorry wrong picture

Some European royals visiting Australia?