In anticipation of a decline in Chinese tourists to Thailand, Burger King (Thailand) Co is revising its business approach by introducing more non-burger items to attract a broader audience and increase revenue.
As stated by general manager Tanawat Damnernthong, the firm will prioritize establishing new outlets in upcountry areas across the nation in the forthcoming five months.
This growth will encompass regions like Phuket and Pattaya, aiming to attract those unfamiliar with burger offerings.
The firm has inaugurated four new outlets in Bangkok and various tourist spots this year, with plans to launch another six locations over the next five months.
The decision to establish more restaurants in Bangkok in the upcoming year has been put on hold; the focus will shift to upcountry regions.
Currently, Burger King serves customers in 20 provinces, underlining a significant room for potential expansion.
Notably, provinces like Ayutthaya, Phitsanulok, and Nakhon Sawan, where the Burger King name isn’t widely recognized, present promising opportunities.
“We have to offer value-for-money products through promotional deals to entice these potential customers,” Mr Tanawat stated.
Additionally, Mr. Tanawat conveyed the brand’s intention to satisfy diverse customer tastes by presenting a plethora of local dishes. This strategy aims to serve patrons with different palates who patronize Burger King.
In a new move, the brand rolled out “Hatyai Chicken King,” a dish inspired by Thai Southern-style fried chicken, as a staple in their menu.
This dish is accessible in all Burger King outlets countrywide, with the exception of airport locations and tourist-centric provinces. Internal studies show that Hatyai fried chicken enjoys particular favor among local fried-chicken aficionados.
“Thailand’s fried chicken market is estimated to be worth 25 billion baht, 2-3 times larger than the burger market,” he elaborated.
On a recent visit to Shanghai, China, Mr. Tanawat observed a downturn in the property market there.
“Therefore, the new menu items will help us build growth without relying on Chinese tourists. Both of the two new products launched to the market recently set new sales records in April and July.”
“We believe our Hatyai Chicken King will take Burger King’s sales to another new high in the fourth quarter of this year,” Mr Tanawat shared.
Mr. Tanawat highlighted that the primary demographic for Burger King consists of individuals aged between 30-39 with a higher income bracket (A level).
The introduction of Hatyai Chicken King aims to expand to those in the medium income category (B level).
Moreover, these product additions align with the company’s long-term vision of deepening the bond consumers feel with the Burger King identity. Exploration is underway to potentially introduce a Burger King Mala offering in upcoming menus.
The recent introductions aim to increase the revenue share of non-burger items to 10% this year from a consistent 3% in previous years, as stated by Mr. Tanawat.
