Rotiboy Proves A Taste Sensation

[Sunbelt Asia]

This restaurant that has taken Bangkok by storm. I know one rival for sure will be entering the excitement. My wife feels it will be around 6 months before the crowds taper off.

BAKERY / IN DEMAND

Rotiboy proves a taste sensation

PITSINEE JITPLEECHEEP

Rubbing shoulders with the jet-set at elite restaurants in Bangkok isn't the only way to keep abreast of the latest dining trends. By sweating a bit and queuing in a long line you can get a bite out of the latest craze _ a coffee-flavoured baked bun at a Rotiboy outlet.

Days after entering the Thai market, Rotiboy, the Malaysia-based bakery chain has became a big hit with consumers by peddling its unique buns which have a coffee aroma.

Every day, from 8 am to 9 pm, there's the same astonishing scene on Silom Road and in Siam Square. That's a long line of people waiting in front of a Rotiboy outlet for their special buns.

It takes buyers about half an hour on average to queue before they can make a purchase, and each shopper is also limited to up to 10 buns at 25 baht apiece.

Pornpen Aungkavanich, managing director of Lottyboy Khanompangob Co, the authorised franchisee of Rotiboy in Siam Square, said she opened the business after a successful partnership with an Indonesian who opened her Noodie noodle outlet in Indonesia last year.

''I had never anticipated that a bun priced at 25 baht could become a million-baht business for me. At first bite, I instantly thought about the business opportunity and bought around 200-300 buns to distribute to my friends as a trial. After all of them said they liked it, I went back to the Malaysian founder and opened our first outlet in only a few months,'' she said.

The first Rotiboy outlet opened with an investment of more than four million baht at Siam Square Soi 4 last December.

At first, consumers weren't that excited. So Ms Pornpen tried a sampling strategy. She gave away hundreds of buns to prospective customer groups, ranging from politicians to singers, businessmen and students.

Through word of mouth, demand for the buns rapidly increased and her company soon had to limit the number of buns per purchase to 10 to avoid disappointing other customers who were still in the queue.

As demand keeps rising, the company plans to open more Rotiboy outlets, with one planned for Central Plaza Lat Phrao on the third floor by the end of this month and another at Central Rama II later on. Additional outlets may open at other department stores and BTS stations.

Rotiboy is the first company to offer this type of baked bun locally. However, it expects that two rivals will soon begin offering the same kind of food as Rotiboy, targeting the same market segment in Bangkok under their own brands in the coming month.

Chalit Limpanavech, chairman of Abac University's Marketing and Communication Department, said Rotiboy could prove a case study as it demonstrates the power of the right four Ps _ product innovation, price, place and promotion.

www.sunbeltasia.com

[baht&sold]

This restaurant that has taken Bangkok by storm. I know one rival for sure will be entering the excitement. My wife feels it will be around 6 months before the crowds taper off.

BAKERY / IN DEMAND

Rotiboy proves a taste sensation

SNIP/

Chalit Limpanavech, chairman of Abac University's Marketing and Communication Department, said Rotiboy could prove a case study as it demonstrates the power of the right four Ps _ product innovation, price, place and promotion.

www.sunbeltasia.com

I always read these "entrepreneur makes good" articles with great interest. The 4 P's are key of course, plus a whole lot of luck (and a large bankroll/connections doesn't hurt in TIT;).

I was at the Tesco on Rama 4 last week and noticed a long winding queue for a new kiosk selling a similar product- BUNS. These one's from Singapore (Singapores Best Buns I think the sign said). They couldn't seem to bake these things fast enough but they looked like just a common swirly bun.

The 5th "P" could be a form of Plaigarism (in this case just copying someone's ideas). Look for more of these Bun on the run places popping up and we'll see if this fad has a longer run than say, fake braces (6 months) in the super fickle world of Thai 'dern' pop consumersim... sell by date anyone?

[Sunbelt Asia]

I understand Buns was here before them. Not much demand but now they have taken off with Rotiboy giving them the boost. It's only 10 baht a bun!

So much for the wisdom " Thais don't eat bread"

www.sunbeltasia.com

[dannishgung]

I tried one time and it is really disgusting stuff. It is so oily, incredibly oily, all butters, and way too salty and sweet. I think only Malays and thais may like this stuff. I will never eat this stuff again if given to me for free.

[GuestHouse]

I think it is a fair bet that we can look for branches of 'Rotigirl' 'Rotiguy' 'Rotiladyboy' springing up all over Thailand.

OK a sucess story, but once again, someone selling an established idea in Thailand.

Few real Thai ideas about.

[gurkle]

I think it is a fair bet that we can look for branches of 'Rotigirl' 'Rotiguy' 'Rotiladyboy' springing up all over Thailand.

OK a sucess story, but once again, someone selling an established idea in Thailand.

Few real Thai ideas about.

It's shocking to see how some farangs can take an innocuous subject like buns and twist it in order to insult the Thai race. Oh well, I guess jealousy will always exist. I personally like the buns and am glad those entrepreneurs are succeeding.

Edited February 12, 2006 by gurkle

[bendix]

I walk past the Silom Rotiboy every morning on the way to work. The queues . . even at 8 am . . are about 200 people long.

They are still queueing up at lunchtime.

An amazing story.

The messengers at my work have made a little business from it also. They take orders for our staff and charge people 5 baht extra per bun. Good luck to them.

[BKKGuitar]

Aaaah, i saw that line when i was up on the BTS walkway, and wondered what that was. They're waiting to buy buns???!!! Hmmm, i thought Thais didn't really eat bread.

Personally i love a good chewy bread in the morning, but most of the bread i've tried here is tasteless. Found one i like at the foodstore in Emporium, long loaves of bread with raisins in it, shaped like that long French bread, wrapped in paper.

[britainmal]

It's shocking to see how some farangs can take an innocuous subject like buns and twist it in order to insult the Thai race.

How about when the Thais insult the farangs , but do it behind their back in Thai.

[GuestHouse]

It's shocking to see how some farangs can take an innocuous subject like buns and twist it in order to insult the Thai race. Oh well, I guess jealousy will always exist. I personally like the buns and am glad those entrepreneurs are succeeding.

If you don't like what I have said, take it appart bit by bit.

For example.

You might want to challenge my statement that this is selling an established idea (This is yet another franchise)

You might want to challenge my statement that there will be copycat start-ups. (Time, and I suggest not much time, will bear that one out)

You might want to challenge my assertion that there are few Real Thai ideas about (You could give me examples of home grown Thai businessness ideas)

I am not attacking the Thai race (whoever they might be). I am making observations about Thai business practice.

Feel free to offer alternative views, but try to avoid playing the 'race/nationalist card', the issue is business practice, not race.

[Sir Burr]

It's shocking to see how some farangs can take an innocuous subject like buns and twist it in order to insult the Thai race. Oh well, I guess jealousy will always exist. I personally like the buns and am glad those entrepreneurs are succeeding.

If you don't like what I have said, take it appart bit by bit.

For example.

You might want to challenge my statement that this is selling an established idea (This is yet another franchise)

You might want to challenge my statement that there will be copycat start-ups. (Time, and I suggest not much time, will bear that one out)

You might want to challenge my assertion that there are few Real Thai ideas about (You could give me examples of home grown Thai businessness ideas)

I am not attacking the Thai race (whoever they might be). I am making observations about Thai business practice.

Feel free to offer alternative views, but try to avoid playing the 'race/nationalist card', the issue is business practice, not race.

Nice return volley!

[Phil Conners]

Ewww, a coffee-tasting bun? Yuk!

[Sing_Sling]

This restaurant that has taken Bangkok by storm. I know one rival for sure will be entering the excitement. My wife feels it will be around 6 months before the crowds taper off.

BAKERY / IN DEMAND

I was at the Tesco on Rama 4 last week and noticed a long winding queue for a new kiosk selling a similar product- BUNS. These one's from Singapore (Singapores Best Buns [/b] I think the sign said). They couldn't seem to bake these things fast enough but they looked like just a common swirly bun.

Yes, we have the best buns!

[JimmyGreaves]

Sorry but my g/f has the best buns!

[steveromagnino]

You might want to challenge my statement that this is selling an established idea (This is yet another franchise)

You might want to challenge my statement that there will be copycat start-ups. (Time, and I suggest not much time, will bear that one out)

You might want to challenge my assertion that there are few Real Thai ideas about (You could give me examples of home grown Thai businessness ideas)

I am not attacking the Thai race (whoever they might be). I am making observations about Thai business practice.

Yes, this is indeed a franchise from Malaysia I believe, and is doing very well.

It is innovative to bring a franchise to Thailand; there are many franchise type operations in business here, and this is one that was well selected, a good location was chosen, and they did some great guerilla marketing to launch it (the first few days of queues were paid people to stand and wait, then it fed on itself Afaik).

Within Thailand, do we see innovation and, as you put it, 'real Thai ideas'? Well it depends, I suppose you could say that Land and Houses are innovating in the way that they do housing; well enough for them to command a pretty decent price premium on the stock market, and become one of SE Asia's darlings among the foreign funds. You have Hahn and Thann in the Thai spa product market going global with their products. You have a Thai guy marketing siam fighting fish around the world. Restuarants like Brew Pavilion (since closed), Dawandaeng and so on reinventing the pub genre. A company called Narai making gifts and also going global. The Food Loft style food courts and various restarant concepts like Greyhound. Oishi green Tea. A ton of game shows (and not the crap imported ones). You've got chains like Coffee World, Black Canyon, BSC, MK, BBQ Plaza, Index, Oishi and so on spreading throughout the Kingdom.

There is this idea held by some that innovation means inventing new stuff. Since IBM takes out pretty much more patents than anyone else, that would logically mean they should be totally dominant, and yet they are not...why? Because there is innovation required in marketing and taking things to market, based on my own dealings with Big Blue I'd have to say they have the ideas, and not the execution ability. By comparison, you don't see the Japanese say inventing the car, but they have innovated in production and providing the small incremental improvements that leave them in another league now. I'd say Thailand's innovation is mostly in the 'not inventing the wheel' category, but there is innovation occuring nevertheless with a few new ideas around to boot.

I'd say looking at America, they have excellence in mass market marketing; look at the success of bad coffee with Starbucks, bad food with McDs and bad music and TV. All marketed well enough to overtake other firms who have the better products (and there are plenty of American firms with better food, coffee, music and film, but they are not as competent at marketing). There are also firms genuinely doing something new like the Sedgeway :-)

So... where is Thailand? I'd have to say we have a long way to go to move up the value chain into value innovation, where we think of new ways to do existing things, or ways to do new things. It is happening in the examples above, but not systematically; indeed the mind set of so many companies is to simply do the same thing as somewhere else leveraging off cheap labour. And ironically a TON of the foreigners I have to deal with here, complain continuously about the lack of innovation and ideas here....then their own idea is so unique - let's get rich using the cheap labour here and do a 'XYZ company' copy. Nice one.

After all, within a developing market, it is not necessary to reinvent the wheel to become rich; a lot of people are getting rich simply bringing products into Thailand that would otherwise be not available. In a developed country, more innovation than that is often required. So, in summary, I'd say Thailand may be a nation with many entrepreneurs, but relatively few genuine new ideas. CSF here is simply to execute well, and for most industries that is enough to get by.

I don't view Guesthouse' comment as an attack on the 'Thai race' but rather a comment on the state of innovation which is not worth debating.

In the case of Rotiboy, I think it will prove long term to be yet another damaging factor for Thai health; if someone can figure out a way to make something a hit that is tasty yet healthy, they will be rich AND be doing something for the waistlines of this country. (and Subways is close, but only when you don't have the cheese and mayonaise, which is the best bit ).

###### foreigner ideas with bad food resistance is futile

[gurkle]

I don't view Guesthouse' comment as an attack on the 'Thai race' but rather a comment on the state of innovation which is not worth debating.

Guesthouse's explanation is fair enough. I thought he originally used the term "Thai" to refer to the inherent ability of the race versus the country's current business practices. I'm used to seeing a lot of disguised Thai bashing here so I misinterpreted the connotations of his message.

Agree with steveromagino about innovation. The entrepreneurs that created Microsoft, Google, and Dell did not have the most original ideas in the world, but did pretty well for themselves through superior execution.

Also, Red Bull is an original Thai product which is being emulated throughout the world now. Yes I know a farang helped bring the energy drink to a worldwide audience, but it is still majority owned by the Thai company and has made the original Thai entrepreneur a billioniare ($US).

Edited February 14, 2006 by gurkle

[steveromagnino]

I don't view Guesthouse' comment as an attack on the 'Thai race' but rather a comment on the state of innovation which is not worth debating.

oops! I actually meant to say is WORTH debating, not, not worth debating. My bad; I won't edit the original since it is now quoted. Sorry 'bout that.

[English Noodles]

This restaurant that has taken Bangkok by storm. I know one rival for sure will be entering the excitement. My wife feels it will be around 6 months before the crowds taper off.

BAKERY / IN DEMAND

Rotiboy proves a taste sensation

PITSINEE JITPLEECHEEP

Rubbing shoulders with the jet-set at elite restaurants in Bangkok isn't the only way to keep abreast of the latest dining trends. By sweating a bit and queuing in a long line you can get a bite out of the latest craze _ a coffee-flavoured baked bun at a Rotiboy outlet.

Days after entering the Thai market, Rotiboy, the Malaysia-based bakery chain has became a big hit with consumers by peddling its unique buns which have a coffee aroma.

Every day, from 8 am to 9 pm, there's the same astonishing scene on Silom Road and in Siam Square. That's a long line of people waiting in front of a Rotiboy outlet for their special buns.

It takes buyers about half an hour on average to queue before they can make a purchase, and each shopper is also limited to up to 10 buns at 25 baht apiece.

Pornpen Aungkavanich, managing director of Lottyboy Khanompangob Co, the authorised franchisee of Rotiboy in Siam Square, said she opened the business after a successful partnership with an Indonesian who opened her Noodie noodle outlet in Indonesia last year.

''I had never anticipated that a bun priced at 25 baht could become a million-baht business for me. At first bite, I instantly thought about the business opportunity and bought around 200-300 buns to distribute to my friends as a trial. After all of them said they liked it, I went back to the Malaysian founder and opened our first outlet in only a few months,'' she said.

The first Rotiboy outlet opened with an investment of more than four million baht at Siam Square Soi 4 last December.

At first, consumers weren't that excited. So Ms Pornpen tried a sampling strategy. She gave away hundreds of buns to prospective customer groups, ranging from politicians to singers, businessmen and students.

Through word of mouth, demand for the buns rapidly increased and her company soon had to limit the number of buns per purchase to 10 to avoid disappointing other customers who were still in the queue.

As demand keeps rising, the company plans to open more Rotiboy outlets, with one planned for Central Plaza Lat Phrao on the third floor by the end of this month and another at Central Rama II later on. Additional outlets may open at other department stores and BTS stations.

Rotiboy is the first company to offer this type of baked bun locally. However, it expects that two rivals will soon begin offering the same kind of food as Rotiboy, targeting the same market segment in Bangkok under their own brands in the coming month.

Chalit Limpanavech, chairman of Abac University's Marketing and Communication Department, said Rotiboy could prove a case study as it demonstrates the power of the right four Ps _ product innovation, price, place and promotion.

www.sunbeltasia.com

I would have thought credit should have been given to the original source (Bangkok post)

[Cassandra]

I think it is a fair bet that we can look for branches of 'Rotigirl' 'Rotiguy' 'Rotiladyboy' springing up all over Thailand.

OK a sucess story, but once again, someone selling an established idea in Thailand.

Few real Thai ideas about.

It's shocking to see how some farangs can take an innocuous subject like buns and twist it in order to insult the Thai race. Oh well, I guess jealousy will always exist. I personally like the buns and am glad those entrepreneurs are succeeding.

I ccouldn't give a flying wotsit about Rotiboy but on a point of information there's no such thing as "the Thai race".It may seem a bit pedantic to point this out but Thai kids are still being taught the fantasy that the "Thai race" originated in Southern China and marched south to claim their inheritance.It's just not true!