HAMBURGER CHAIN
Big Mac of a takeover for Vicha


Vicha, at a press conference yesterday where Major Ceneplex Group launched what it dubs the world's first private members' club cinema, 'Enigma The Show Screen', at its Paragon Cineplex complex.
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Cineplex chief buys into McDonald's
Major Cineplex Group chairman Vicha Poolvaraluck has shaken up the local quick-service restaurant market with his personal takeover of the McDonald's franchisee in Thailand. He expects to use the fast-food network to further the theatre group's aim to broaden its lifestyle service range. Vicha and his partner Hester Chew, ex-managing director for Thailand, Singapore and Indochina of Tricon Restaurants International, have acquired the entire stake in McThai Co Ltd, the local franchisee for McDonald's restaurants in Thailand. Vicha himself owns more than 70 per cent of the retail hamburger firm. He did not disclose the value of the transaction. In 2001, Chew left Tricon Restaurants International, which has changed its name to Yum Restaurants International. Yum operates KFC and Pizza Hut restaurants. "The acquisition of McThai Co Ltd will create on-top value to our Major Cineplex Group, which is moving beyond being just an ordinary cinema operator and towards an entertainment lifestyle," said Vicha. "McDonald's is part of this entertainment lifestyle. When you talk with landlords about projects, you will now longer offer them not only cinema any more but also other entertainment magnets such as fitness centres, bowling and even this McDonald's business." Vicha owns 37 per cent of Major Cineplex. He said he would like to challenge himself with this new fast-food business as he wants to rebuild McDonald's as the number one hamburger chain and fast-service restaurant in Thailand. McThai currently operates 90 McDonald's restaurants in Thailand. The company has frozen expansion for three years. However, with the new shareholders, McThai will open a new outlet in December this year at the Esplanade complex on Ratchadapisek Road. "McDonald's is now a leading international fast-food brand. And from now on, the McDonald's business will be wholly owned and run by the Thai franchisee," said Vicha, adding that the strength of McDonald's is its strong product differentiation from other fast-food restaurant chains. McThai was formed in 1982 by Dej Bulsuk, who originally held a 50-per-cent stake while McDonald's held the other half. In 2004, Dej quit as managing director of McThai and sold his remaining 26-per-cent stake to the US-based McDonald's. The original franchise contract ended in 2004 when McThai wholly owned and operated 105 McDonald's restaurants in Thailand and employed 4,000 people. Vicha revealed the deal at a press conference yesterday where Major Cineplex Group launched the world's first private members' club cinema", the so-called "Enigma The Shadow Screen" at its Paragon Cineplex complex. Brian Hall, chief cinema business manager, Paragon Cineplex, said the new Enigma theatre, with its own private screening room and lounge, has been created to serve both corporate and individual customers who demand privacy. Membership fees will range from Bt30,000 per year for a "Pink Stone" package, Bt50,000 for "Purple Gold", and up to Bt100,000 for "Black Diamond". About 400 members are expected to be recruited in the first 12 months.
Kwanchai Rungfapaisarn The Nation
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