CRG targets students amid labour crisis
Central Restaurants Group (CRG) sees Thailand’s labour shortages as a critical challenge for the restaurant business this year due to ageing demographics.
To tackle the issue, the company is working with educational institutes to provide job opportunities for students and elderly people, said Piyapong Chitchumnong, head of QSR & Western cuisine and head of KFC for CRG.
He said about 70% of KFC employees are casual employees, while the majority receive wages higher than the new planned daily minimum wage of 400 baht, scheduled for October this year.
With an ongoing manpower shortage, the company might have to increase its daily wage to attract workers, which could even exceed the 400-baht threshold regulated by the government, said Mr Piyapong.
“The wage hike would only slightly impact our bottom line, as costs would rise by less than 1%,” he said.
Mr Piyapong said customers’ behaviour had reverted to what it was before the pandemic, with most people opting for dine-in or takeaways.
Takeaways contributed roughly 40% of KFC sales, while dine-in sales accounted for 35%, followed by home delivery at 25%, he said.
Mr Piyapong said the company plans to renovate 35 branches this year, in a bid to accommodate more customers.
He said the renovated stores will be equipped with digital menu boards to enhance guest experiences.
It is also introducing a new service model called “Grab & Go” in hightraffic areas, such as at mass-transit stations, with plans to open new stores later this year.
Mr Piyapong said the company is preparing to launch 23 new branches in 2024.
Of the new branches, over half will be located in second-tier cities to cater to the growing demand for quick-service restaurants (QSR) in those areas.
As of May 31, CRG operates 338 KFC stores, with 50 of them located in secondary cities.
Its new branches this year have been in provinces such as Ubon Ratchathani and Nakhon Sawan, Mr Piyapong said.
In 2023 the value of QSR business in Thailand was around 45 billion baht, while this year it is expected to grow by 3%, he said.
For KFC stores under CRG, sales reached 7 billion baht last year, increasing 6% from 2022.
In 2024, the company aims to achieve 8% growth, led by the new stores and the new service model.
‘‘ With an ongoing manpower shortage, KFC might have to increase its daily wage to attract workers. PIYAPONG CHITCHUMNONG Head of QSR & Western cuisine, Central Restaurants Group