Thai food giant plans aggressive Australia expansion

[webfact]

Thai food giant plans aggressive Australia expansion

SYDNEY, July 22, 2014 (AFP) - Thailand's Charoen Pokphand Foods is planning to roll out up to 500 quick-service Thai restaurants in Australia, a market it sees as ripe for a fast-food explosion, reports said Tuesday.

The food arm of Thailand's largest agriculture-based company also plans to expand into the booming ready-to-eat meals segment as its Australian investments grow to more than Aus$200 million (US$188 million) over the next five years.

"The best-practice model for restaurants and franchises globally is in Australia," regional general manager Richard Lovell told The Australian newspaper ahead of opening the company's first restaurant in the country, 1000Wat, in Melbourne.

"Over the next four years our target is 300 to 500 stores with a modern Thai, fast-food, great value-for-money offering."
Australia has no shortage of fast-food restaurants, but few large-scale quick-service ones that can replicate the McDonald's brand.

Lovell said the company, the leading agro-industrial and food conglomerate in the Asia-Pacific region, planned to open more stores in Melbourne this year before moving to other state capitals.

CP Foods said it wanted to boost its revenues from fast food from three percent currently to 10 percent within in a decade.

"After 28 years' experience in Thailand and following our expansions into markets like India, Vietnam, Cambodia and Myanmar, we want to grow our fast-food concept in Australia," Lovell added.


-- (c) Copyright AFP 2014-07-22

[laolover88]

So Oz, unlike the rest of the world, continues to think that CP food, particularly prawns, is edible?

[lostsoul49]

A new way to lose loads of money and face.

Go for it.

I don't think the Ozzies will go for your 50% water low quality crap..

[laolover88]

I devote an unnecessary amount of time trying to avoid CP CPAll etc. 7-11 must peddle a collection of the most unhealthy food on the planet; well I use the word 'food' advisedly. The only part of the empire I can't avoid is Makro..and that is only because where I live there is no other sea fish!

[shirtless]

CP i wish you luck as i have tasted your products and I dont think you will get the results your after in Australia .

[Rorri]

I hope they are only allowed to hold a 49% share in any company they form and must employ Australian employeess, along the same lines and conditions applied to foreigners in Thailand.

[ezzra]

CP, what you sold to Thais with impunity with barely a quality control in sight will be very hard

to sell to the Aussies, you can try and dump tone of investment cash and see...

[chooka]

Thai food is big in Australia and there are a number of quality Thai restaurants in Melbourne. Aussies aren't really big on T.V dinners and if they want quality sausages then they can go to any butcher or Deli and choose from a vast range of delicious tasting smallgoods. The stuff that C.P sells is tasteless rubbish. Sorry but is just won't succeed

[laolover88]

Thai food is big in Australia and there are a number of quality Thai restaurants in Melbourne. Aussies aren't really big on T.V dinners and if they want quality sausages then they can go to any butcher or Deli and choose from a vast range of delicious tasting smallgoods. The stuff that C.P sells is tasteless rubbish. Sorry but is just won't succeed

And, whatever CP may be good at, I don't think they have much expertise in running restaurants. I mean Chester Grill...say it properly Chesser Glill..hardly counts as a restaurant

[WitawatWatawit]

CP i wish you luck as i have tasted your products and I dont think you will get the results your after in Australia .

You over-estimate Australian judgemental abilities and under-estimate the bottom line of the fast food market. But I do hope you are right. :)

As an aside - a female security guard stopped at my house for a chat the other day. I offered her some horapa, mint and lettuce leaves from my garden, but she declined, saying she did not have time to cook. Such is the life of many local workers. Easier to pop into the 7/11 for a microwaved meal.

[shanahan]

It seems to me that the many successful and quality Thai restaurants in Australia are ones that cook fresh and have authentic Thai cooks.

[simple1]

Usual dull Thai bashing. With a proposed investment of this size you don't think CP would have done extensive market research into the very competitive Oz Thai restaurant market, required standards of food quality and so on

CP would be paying, at the very least, minimum wage, usual HR policies and so on. Fact, not uninformed opinion, so many Thai restaurant owners do not come anywhere near to acceptable wages, nearly zero tax compliance, very exploitive "management" practices etc

Edited July 22, 2014 by simple1

[Katipo]

They sell crap here because they can. As corrupt as CP are, I think they should have enough common sense to know that even Australian won't buy the low quality rubbish they peddle in Asia.

[Travel Dude]

Will the food served come from labor by Asian slaves?

[chooka]

Usual dull Thai bashing. With a proposed investment of this size you don't think CP would have done extensive market research into the very competitive Oz Thai restaurant market, required standards of food quality and so on

CP would be paying, at the very least, minimum wage, usual HR policies and so on. Fact, not uninformed opinion, so many Thai restaurant owners do not come anywhere near to acceptable wages, nearly zero tax compliance, very exploitive "management" practices etc

I don't it is Thai Bashing. There is no way that C.P could possibly compete with the well established Deli scene in Australia. Delis that serve an enormous variety of foods and smallgoods. Foods infused from around the world and are an art form. Huge businesses like Starbucks tried to break into the café scene in Aust failed because of the already well established baristas. C.P has absolutely no variety and is bland in taste it doesn't even come close to what is already on offer in Aust. They will fail and I don't think they will sell to many franchises.

[simple1]

Usual dull Thai bashing. With a proposed investment of this size you don't think CP would have done extensive market research into the very competitive Oz Thai restaurant market, required standards of food quality and so on

CP would be paying, at the very least, minimum wage, usual HR policies and so on. Fact, not uninformed opinion, so many Thai restaurant owners do not come anywhere near to acceptable wages, nearly zero tax compliance, very exploitive "management" practices etc

I don't it is Thai Bashing. There is no way that C.P could possibly compete with the well established Deli scene in Australia. Delis that serve an enormous variety of foods and smallgoods. Foods infused from around the world and are an art form. Huge businesses like Starbucks tried to break into the café scene in Aust failed because of the already well established baristas. C.P has absolutely no variety and is bland in taste it doesn't even come close to what is already on offer in Aust. They will fail and I don't think they will sell to many franchises.

The OP talks to the planned opening of 500 Thai fast service restaurants. Future plans for "ready-to-eat meals" segment, that I suggest is very different to the specialist deli scene in Oz.

You're making an assumption that CP will not take the necessary measures to meet Oz consumer expectations. Even though small traffic the website for their new establishment in MLB is getting positive customer reviews.

Edited July 22, 2014 by simple1

[Glock3am]

The problem with the argument of the critics here is that you're all basing your opinions on the processed snacks that CP sell at 7-11. CP offer many more higher quality offerings in other areas which would likely be what they are going to use in an operation like this. An example would be the quality meat that is sold for a premium in supermarkets like Tops, e.g. the Kurobuta Pork or various marinated chicken fillets. They are delicious. If you ever see one of the CP "butcher" shops around (there's one in Thonglor for instance) they also sell a large range of the same high quality meat.

It's not all frozen ready meal crap. They have fingers in many, many pies.

I can see this being very successful in Australia. Aussies LOVE Thai food and are huge consumers of quick and easy fast food. Usually when something like this other than boring burgers and fries comes out, it does well (e.g. Subway and Nando's have done very well in the last decade or so.)

Edited July 22, 2014 by Glock3am

[BlackJack]

Maybe some would consider CP foods a luxury item in OZ and it may attract a tax of 200-300% like OZ wines attract in Thailand

[scotbeve]

Nobody has mentioned WHERE CP gets it "quality" foods and meats from.... ? I think there are quite a number of TV members that are aware of CP's biz tactics are where they destroyed 1000's of poor farmers with their monopolistic-aggressive "food" (using the term very loosely...) industry!Also... look into the quality of the feeds and fertilizers they "push"...

[MK1]

I guess by entering the fast-food market quickly, Australian consumers probably won’t notice that their foods are heavily laced with Monosodium Glutamate (MSG –food additive no.621) just like the other fast food chains.

More so for CP food products, which predominantly relies on the flavor enhancer in almost all their processed manufactured foods so as to disguise the real quality of their food.

Edited July 22, 2014 by MK1

[BookMan]

According to this article they are looking at 100 stores within 5 year. The Australia market likes these types of noodle take away stores. If they can get the price right they should do well.

CP Foods’ Thai takeaway delivers for Melbourne couple

Agricultural giant Charoen Pokphand Foods, Thailand’s fifth-largest company by revenue, has partnered with a husband-and-wife team owning just two Melbourne noodle bars to roll out a chain of quick-service Thai restaurants that it plans to expand into a chain of 100 nationally within five years.

CP Foods, which last year had revenue of 400 billion baht ($13.2 billion), on Tuesday opens1000WAT, a Thai fast food restaurant in Melbourne’s newly completed Emporium shopping centre, in premises shared with Konfir Kabo and Monica Lim’s Ramen Ya outlet.

http://www.afr.com/p/business/companies/cp_foods_thai_takeaway_delivers_EozO5eMbB6WwtO4rQd8M1J

[WitawatWatawit]

The problem with the argument of the critics here is that you're all basing your opinions on the processed snacks that CP sell at 7-11. CP offer many more higher quality offerings in other areas which would likely be what they are going to use in an operation like this. An example would be the quality meat that is sold for a premium in supermarkets like Tops, e.g. the Kurobuta Pork or various marinated chicken fillets. They are delicious. If you ever see one of the CP "butcher" shops around (there's one in Thonglor for instance) they also sell a large range of the same high quality meat.

It's not all frozen ready meal crap. They have fingers in many, many pies.

I can see this being very successful in Australia. Aussies LOVE Thai food and are huge consumers of quick and easy fast food. Usually when something like this other than boring burgers and fries comes out, it does well (e.g. Subway and Nando's have done very well in the last decade or so.)

They have fingers in many, many pies.

Oh, jesus, no, keep em away from Aussie pies. They're an institution, a reason for living and procreating. I'd kill for a Four 'n Twenty right now.

[chooka]

Nobody has mentioned WHERE CP gets it "quality" foods and meats from.... ? I think there are quite a number of TV members that are aware of CP's biz tactics are where they destroyed 1000's of poor farmers with their monopolistic-aggressive "food" (using the term very loosely...) industry!Also... look into the quality of the feeds and fertilizers they "push"...

Actually C.P say they will be importing all products from Thailand, except the prawns which are banned but CP is the biggest prawn farmer in Australia so it doesn't matter.

C.P wanted to buy steggles poultry in Australia and Don pigs farm but they decided that production costs in Aust were to high. They have decided to import everything they need for this venture. Everything in the new CP will be 100% Thai and all profits go to Thailand.

[chooka]

Maybe some would consider CP foods a luxury item in OZ and it may attract a tax of 200-300% like OZ wines attract in Thailand

CP is definitely not a luxury food item. Anyone who has ever been in a CP store will agree. Their so called sausages are nothing more than paper wrapped in plastic, void of taste and as hard as rocks. Their chicken is underbelly grey meat, what farangs feed to dogs. The bacon is disgusting stringy stuff with no actual meat just fat and a hint of bacon, it is also saturated in water and when you try to cook it you end up boiling it.

The worst and most disgusting example of smallgoods on the planet

[Ulic]

It is going to be a tough slog for CP in Australia. Trying to cash in on the popularity of Thai food without providing

the high quality fresh cooked service. I would not bet on a successful outcome.

[deecee10]

The problem with the argument of the critics here is that you're all basing your opinions on the processed snacks that CP sell at 7-11. CP offer many more higher quality offerings in other areas which would likely be what they are going to use in an operation like this. An example would be the quality meat that is sold for a premium in supermarkets like Tops, e.g. the Kurobuta Pork or various marinated chicken fillets. They are delicious. If you ever see one of the CP "butcher" shops around (there's one in Thonglor for instance) they also sell a large range of the same high quality meat.

It's not all frozen ready meal crap. They have fingers in many, many pies.

I can see this being very successful in Australia. Aussies LOVE Thai food and are huge consumers of quick and easy fast food. Usually when something like this other than boring burgers and fries comes out, it does well (e.g. Subway and Nando's have done very well in the last decade or so.)

'...They have fingers in many, many pies'.

Now that explains it.

[kinmaew]

If I need some good Thai food in Oz I know where to go and it wont be with CP foods ever.

[markt7081]

Maybe Oz can charge them a billion% duty on the stuff. Same as they do with our wines.

[TimCM]

Maybe some would consider CP foods a luxury item in OZ and it may attract a tax of 200-300% like OZ wines attract in Thailand

CP is definitely not a luxury food item. Anyone who has ever been in a CP store will agree. Their so called sausages are nothing more than paper wrapped in plastic, void of taste and as hard as rocks. Their chicken is underbelly grey meat, what farangs feed to dogs. The bacon is disgusting stringy stuff with no actual meat just fat and a hint of bacon, it is also saturated in water and when you try to cook it you end up boiling it.

The worst and most disgusting example of smallgoods on the planet

Let them open a few places Chooka. Then when they have invested a decent sum of money, ACA or Today tonight can run a story on how they use slavery to keep costs down. That will be the end of their business as Australians have some morals. We can then all say TIA

[Glock3am]

Nobody has mentioned WHERE CP gets it "quality" foods and meats from.... ? I think there are quite a number of TV members that are aware of CP's biz tactics are where they destroyed 1000's of poor farmers with their monopolistic-aggressive "food" (using the term very loosely...) industry!Also... look into the quality of the feeds and fertilizers they "push"...

Maybe so, but they still pale in comparison to the likes of Tyson Foods in the U.S.A. and their dealings over the years. They are the biggest meat conglomerate in the world with a track record of controversies.