Jtepa paves way to fast expansion of Oishi

The Oishi Group, operator of Oishi Japanese restaurants, has benefited by the trade agreement, which took effect last November 1. The group plans to spend Bt200 million this year to open new restaurant outlets.

Under the expansion, the group will open about 20 new Delco delivery and carry-out restaurant outlets this year. It will also open four or five Shabushi restaurants and another six new outlets of its Oishi Buffet, Ramen and Sushi restaurants.

At the end of last year, the group signed a memorandum of understanding with Maido Ooikini Shokudo for a local licence to operate its franchised home-style restaurants in Thailand.

The group is also negotiating with another two Japanese restaurant chains for the rights to operate their franchised restaurants in the Kingdom.

The first Maido Ooikini Shokudo restaurant will open by the second quarter, with three more expected to open this year.

The Oishi Group now operates 84 Japanese restaurant outlets: three Oishi Buffet, eight Oishi Express, one Oishi Grand, 14 Shabushi and more than 30 Oishi Ramen restaurants.

The group expects the number of its restaurants to increase to more than 106 outlets this year.

The Kasikorn Research Centre said there are currently more than 700 Japanese restaurant outlets in Thailand. Japanese restaurants are the most preferred by Thai consumers, followed by Chinese, American, Vietnamese and Italian restaurants.

The total market for Japanese restaurants is expected to show dramatic growth, from more than Bt5 billion in sales value last year to about Bt7 billion this year.

Oishi expects to increase its market share in the local Japanese-restaurant market from the 35 per cent now to 38 per cent by the end of the year. Oishi last year achieved 13-per-cent growth in its restaurant business and expects growth of 15-17 per cent this year, to more than Bt2 billion in sales.

Oishi Group vice president Paisarn Aowsathaporn said Jtepa would lead to lower prices of food ingredients directly imported from Japan. The group also said it was quite convenient for them to expand existing Japanese restaurant outlets and take out licences for new Japanese restaurant brands in Thailand.

Paisarn said that with Jtepa, Oishi plans dramatically to increase imported food ingredients from Japan.

He said that previously, about half of all food ingredients used by the group had been imported from Japan and the rest sourced locally. However, with Jtepa, the Oishi Group plans to increase the ratio of imported food ingredients from Japan to 70-80 per cent this year. For example, the group currently imports 18 tonnes of salmon a month from Japan.

With more diversified products imported directly from Japan, Oishi will be able to offer more diversified menus to its clients during every season, Paisarn said.

Kwanchai Rungfapaisarn

The Nation