EVENT COVERAGE: QSR MEDIA CONFERENCE
From left to right: Krispy Kreme Thailand’s Ausanee Leonio, PizzaExpress HK’s Helen Leung, and Kebab Turki Baba Rafi’s Hendy Setiono
Adapting to Southeast Asia’s booming and diverse restaurant sector
Executives from three of the region’s biggest QSRs talk about what it takes to expand in nearby markets.
D
ue to the outstanding and sustained economic growth of the region, Southeast Asia has become a magnet for foreign investment. In particular, many QSR locators looking for opportunity have come to the region, attracted by consistent economic outperformers such as Indonesia, Thailand, Singapore, and Malaysia. However, newcomers should be prepared to meet stiff competition and an unpredictable market. A certain adaptability and a knack for current technological and cultural trends will go a long way in securing a foothold in the region, according to a panel of executives during the QSR Media Asia Conference and Awards. Improvise, adapt, overcome Hendy Setiono, founder and chief executive officer of Indonesian chain Kebab Turki Baba Rafi, noted the importance of knowing the market
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HONG KONG BUSINESS | JULY 2019
In Hong Kong, Leung said more consumers would like to be served by human workers.
conditions of the country you are doing business in. “The interesting thing about doing business in Indonesia is that it is a massive market,” he says. He says that with a population of over 250 million, and rising middleclass income and consumer spending, a sound marketing and operations strategy can help a brand connect with both an audience and potential business partners. “The way we grow internationally is through a master franchisee strategy. We work with local partners as the master franchise and after we deliver our know-how technical training, then they are able to open their own shop as well as a franchise model. We tap into what we call the young generation, the millennials.” There is opportunity to be found in similar markets like Thailand. “We are a growing country. The economy this year will forecast
better than the previous year. We see a lot of positive things coming in,” KDN Company Limited president Dr. Ausanee Mahagitsiri Leonio says. KDN Company Limited is the master franchisee of Krispy Kreme in Thailand since 2010. Technology and delivery Technology can often bridge the gap between a brand and the market, especially among the younger generation. In addition, being aware of the culture in a country’s technology space can bring an awareness of certain factors that could affect your brand. Leonio mentions that there is an emerging trend of independent brands selling home-cooked meals on social media platforms such as Instagram. “Technology is the focus for all of us,” Helen Leung, finance director of PizzaExpress Hong Kong, adds. “It’s