Nippon Pack Acquires A&W Franchise Concession in Thailand, Pursuing Offensive Marketing Strategy to Challenge Major Competitors
The company expects to add 100 new branches and capture market share in 60 billion baht QSR sector. A&W CEO unveils plans to penetrate into the ASEAN markets, aiming to double its branches.
Nippon Pack that has recently acquired an exclusive master franchise license of A&W restaurants in Thailand joins forces with its parent company A&W US to bring the brand back to its former glory. A&W is ready to challenge major brands in a bid to capture a big market share in the QSR sector, which is worth 60 billion baht. In the next five years, it will introduce 100 new branches at prime locations, shopping malls, communities, business areas, and gas stations. Its highlight products are Golden Aroma Chicken and Root Beer Float. A&W CEO unveils the company’s plan to expand its ASEAN markets by doubling its branches in Southeast Asian countries within five years.
Suraphong Triamchanchai, managing director of Nippon Pack (Thailand) Public Company Limited, manufacturer and distributor of plastic packaging, said, “It’s good news for Thailand and a great opportunity for Nippon Pack to work with A&W Restaurant Inc. USA. We have been chosen as the exclusive licensed franchisee of A&W in Thailand.
“The goal is to bring high-quality and delicious food to the Thai consumers with great support from its head office in the US. A&W will once again become a favorite brand among Thai people.
“The company has established NPP Food Incorporation to manage its restaurant business, which is a new business for Nippon Pack, starting with A&W as its first brand.
It is managed by experienced professionals who have been in the QSR (Quick Service Restaurant) industry for several years and have successfully managed QSR brands.
It is managed by experienced professionals who have been in the QSR (Quick Service Restaurant) industry for several years and have successfully managed QSR brands.
“Our diversification into a new business line came from our intention to bring great brands to Thailand. Existing QSR brands in Thailand are now strong – some are known for their burgers, some for their fried chicken. However, we are confident in A&W’s menu, and there is room for new brands. Whether the economy is good or not, the food industry never suffers. Consumer behavior might change, but the frequency doesn’t. QSR is priced in the same range as regular food, but offers high quality. We have a wide target group, so we don’t see this as a difficult competition, but a fun challenge,” said Suraphong.
Dr Wichai Charoenthanmanon, chief executive officer of NPP Food Incorporation Company Limited, said, “A&W opened in Thailand 31 years ago, with its first branch at Central Plaza Ladprao. According to our market research, we found that those who are 35 years old or more are familiar with the A&W brand, but those under 35 are not. Most of them know the Siam Square branch and the root beer. This is a challenge for us. We know that A&W root beer is recognized by Thai consumers, and this is our strength on which to build our success.
“Its main target groups are customers who already know and like A&W food and new customers or those who are under 35 years of age, such as young adults (25-35 years old), first jobbers, and families. The highlight is A&W’s signature fried chicken enjoyed with root beer. A&W was the pioneer of crispy fried chicken, whereas other brands sell soft fried chicken. A&W has improved its recipe to create Golden Aroma, flavorful crispy fried chicken that will please the palate of Thai consumers.
“Moreover, A&W also has an extensive menu, offering main dishes and desserts. Its Core Menu includes fried chicken and hamburger. For dessert, there are waffles and root beer. Each menu features an innovation – its waffle is seasonal and original, as no other competitor offers waffles, while its root beer float is made with rich soft serve ice cream.
“A&W will open 100 new branches inThailand in five years. The branches are divided into three types – 200 sq m full shop in shopping malls, 80-120 sq m standard standalone in communities and business areas, and 20-40 sq m kiosk at gas stations. As for its existing branches, the company has renewed the license for 21 branches.
“There are many full shop QSRs in the market, but there is no counter shop offering both food and desserts. A&W will introduce such shop in Thailand for the first time. Thailand’s food industry is worth 120 billion baht – 60 billion from chain restaurants and 60 billion from QSRs. A&W is confident that it can win a market share.
“In the future, the plan will introduce a new type of A&W shop, which is being launched in the US. The hip nostalgic concept will present stories that will make the menu more special. There will be retro décor, old jukebox, or reminisces of World War II era when root beer was a groundbreaking innovation. The concept is being implemented in the US.” said Dr Wichai
Mr Kevin Bazner, president & CEO of A&W Restaurants, Inc., said, “We granted the franchise license to Nippon Pack because we are confident in its experienced team. Surapong’s personal passion for the A&W brand also impressed us. We will offer assistance in every way to help the A&W brand grow in Thailand as much as possible because Thailand is an important market. A&W want to be successful in the Thai market again after having been inactive for a while because we were in the process of finding the right partner. Now that we have a partner we can trust like NPP Food Incorporation, we are ready.”
Mr Bazner continued, “After we bought A&W from Yum! Brand Inc. four years ago, we see a lot of potential for double growth in Southeast Asia. A&W has been in this region since 1963, and we have more than 300 branches. We will focus on expanding in the markets where there already are A&W shops, such as Indonesia, Malaysia and Thailand, as well as Okinawa in Japan. We are discussing our expansion into CLMV countries (Cambodia, Laos, Myanmar, and Vietnam). We plan to double the number of branches in this region within 5-7 years.”
Get ready to experience the new look of A&W Restaurants, managed by NPP Food Inc, at department stores, shopping malls, and gas stations near you.
