Baiyoke Group grows bakery line with launch of Pablo cheese tarts
BAIYOKE Group yesterday announced the strengthening of its food and bakery business after the launch of Pablo, a well-known Japanese cheese-tart brand, which has joined the growing premium bakery market in Thailand.
The group plans to increase the number of its franchised restaurant brands to 10 by 2019, from the current six.
Baiyoke Group’s subsidiary PDS Holding has six international food brands in its portfolio, mainly Japanese. They are Pablo cheese tarts from Osaka, Ikkousha Ramen from Fukuoka, Sekai no Yamachan from Nagoya, Uchidaya Ramen, which is Yokohama-style ramen, and Miss Siam Restaurant, a Thai restaurant in Fukuoka.
Piyalert Baiyoke, chairman of PDS Holding and vice chairman of Baiyoke Group, spent Bt50 million to acquire a master franchise from Masamitsu Sakimoto, chief executive officer and founder of Pablo.
The first Pablo outlet was opened recently on the ground floor of Siam Paragon shopping complex in Bangkok. The branch is expected to serve 1,500 customers per day and generate Bt100 million in its first 12 months.
According to Euromonitor Inter-national, the bakery market in Thailand since 2011 has grown by an average of 7.6 per cent a year. It was valued last year at Bt25.8 billion.
Although this market is highly competitive, PDS Holding has seen opportunities because of Baiyoke Group’s extensive experience in food business.
“Our company has an advantage in restaurant operation, human-resource management and negotiating franchise agreements.
“We have selected Pablo to increase our profits in the final quarter of this year, amid the high purchasing for the Christmas and New Year celebrations. This brand has a very strong concept, high product quality, creativity, and exceptional deliciousness. Therefore, it should be a strong player to compete against other brands in the imported bakery market,” said Piyalert, who is in the second generation of the founding family of Baiyoke Group.
Before coming to Thailand, Pablo has also been available in many markets in Asia, including South Korea, Taiwan, the Philippines, Indonesia and Malaysia.
“We expect the sales of our food and bakery business to reach Bt120 million this year, excluding the new Pablo brand. However, with Pablo, we expect our sales to reach Bt300 million next year,” Piyalert said.
He added that the company would open another Pablo outlet in Bangkok next year. About eight branches will be opened in total in Bangkok and other cities over the next 10 years.
He said Baiyoke Group’s total revenues were expected to grow by only 5 per cent this year because of a decline in its hotel business due to the sluggish economy.
“Over the past two years, the number of our hotel clients dropped significantly, by 20 per cent. Our hotel occupancy [rate] also declined from 85 per cent to only 70 per cent,” he said.
Piyalert said that the group would open two new hotels next year. They are |the 200-room 3.5-star Bangkok |Mid Town Hotel in Yommarat, to be opened in the second quarter of 2017, and the 80-room, three-star Justice Hotel on Ratchadaphisek Road, to be opened in the fourth quarter of next year.
