Restaurants Development Company

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Keeping KFC at the top of Thailand’s QSR industry

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DIFFERENCE Restaurants Development Co. Thailand is making huge strides with the KFC brand, and is on course to reach 200 stores by the end of 2019 Writer: Tom Wadlow | Project Manager: Lewis Bush

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hailand is enjoying something of a love affair with chicken.

By 2025 average per capita consumption is set to reach 16.2 kilograms, double the amount Thais were eating in 2011.

And it is easy to see why. A healthy, affordable and extremely versatile protein source, chicken is rivalling pork in terms of the nation’s most popular meat.

It is therefore little surprise that KFC commands the number one spot in Thailand’s quick service restaurant (QSR) charts. Occupying more than

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700 stores up and down the Southeast Asian country, this footprint is more than two and half times that of nearest competitor McDonald’s and shows no sign of slowing up.

For Andrew Norton, CEO of Restaurants Development Co..

Thailand (RD), franchise operator of 178 KFC restaurants, this rollercoaster speed of the industry makes it an enticing, addictive arena to work in.

“I love businesses that everyone can relate to, fast-moving, consumerfacing and highly engaging,” he says.

“My background was in professional

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services working as an accountant for PricewaterhouseCoopers. It was a good training ground, but in 2001 I took my first move out of that profession in a finance role for Disney Corporation – it was a game changer.

“I instantly loved that the product was relatable, so on a personal level, as a consumer, I could engage in what I was doing and what the company was selling.

“I decided that I wanted to continue working in a retail and FMCG style environment, and QSR is the perfect blend of retail, FMCG

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product innovation and multi-site manufacturing in a very fast-moving business. The pace of work is relentless and exciting, and the rate at which we can innovate and respond to consumers is far faster than in FMCG.”

People business

Another draw for Norton is that the nature of the QSR industry means it is unequivocally a people-centred enterprise.

Indeed, for RD’s CEO, meeting the company’s growth ambitions will come from its commitment to having

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the right mix of capital, capability and culture.

The second of these is of particular importance as the business expands rapidly.

“On capability, we have made significant investments in our restaurant support team to make sure we have the best teams to open successful new restaurants fast,” Norton says. “Functions like market research, site acquisition, design and construction are critical, of course, but growing this fast requires support from every function in the business.

We have made sure we have got great people as stewards of our growth.

“Capability is also required in our restaurants. A restaurant is only successful with a well-trained team and a fantastic restaurant general manager.

“We have invested very heavily in developing and promoting our in-restaurant teams into leadership positions – shift supervisors are becoming assistant managers, assistant managers are becoming managers, and managers are becoming area coaches. The rate of promotions and development for our

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people is rapid and lines up with our unprecedented growth.”

This is encapsulated in RD’s ethos of “Everyone makes a Real Difference”.

From free food and small gifts to corporate thank you cards and even a few kind words, Norton and the company’s leadership take time out to celebrate the contributions of all their employees.

“This is something I am hugely passionate about,” Norton says. “We say that RD stands for Real Difference, and myself and my leadership team absolutely believe that everyone in RD contributes to our success, to a great customer experience and to a great place to work for our team members.

“Everyone has a critical role to play in making sure we can serve our customers and grow our business.

Every role and every team member make our success and should share in our success.”

That KFC is enjoying reduced turnover in its restaurants and almost no turnover in support functions is testament to this mantra, no mean feat given the competitive employment market for retail and restaurant professionals.

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infox International Group is the largest privately-owned logistics company in Asia Pacific with over 60 years of history. Linfox operates 600,000 square metres of warehousing space and 6,830 vehicles in eight countries. Further, it employs 13,000 people to deliver supply chain services to a wide range of companies.

Its expertise includes customised transport solutions, distribution management, warehouse design and build, cross-border, multi-temperature, food and dangerous goods standard compliance.

Linfox’s reputation has been built on excellence in safety, service, efficiency, security and compliance. Its state-ofthe-art Operations Centre in Bangkok features custom-built real-time monitoring infrastructure and systems with 24-seven enhanced visibility of fleet movements.

We keep our team and customer’s products safe while streamlining supply chain and optimising costs.

PATUM VEGETABLE OIL COMPANY

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stablished in 1975, Patum Vegetable Oil Company has become a leader in cooking palm oil, biodiesel and refined glycerine.

The company continually focuses on improving standards through its integrated management system, and is a long-term holder of international certification for its modern process facilities at its factory in Pathum Thani, central Thailand.

“We continuously strive for excellent services through professional human resources to serve our valuable customers. Having customers’ satisfaction in mind, we offer varieties of products, specifications and pack sizes to meet your requirements.”

T +662-424-1165, +662-424-2168, +662-434-8384-7 E cs@patumoil.co.th

www.patumoil.co.th

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BRAND POWER KFC carries tremendous brand appeal across Thailand. For Norton, this is down to three major reasons: 1. The brand is relevant to Thai consumers – chicken is the most relevant and fastest growing protein source in the country. KFC’s product range has also been tailored to suit Thai tastes and preferences.

2. Ease of access – with more than 700 outlets and a huge delivery network, KFC’s footprint means it is within a very short distance for millions of customers.

3. Distinctive offering – KFC’s products are unique to the market and of a high standard, comments which are often fed back to the company by its consumers.

RD has played its part in uplifting the KFC brand across Thailand, its work recognised in the form of numerous awards, as described by Norton.

“Not only have the team accomplished a lot, but they have become thought leaders for KFC in Thailand by always pushing new thinking and new opportunities for the brand,” he says.

“To this end, the team has been presented with a number of regional and global awards including the global Best New KFC Franchisee award, and KFC Franchisee of the Year for Thailand.

Other awards are for contributions and thought leadership in brand development, such as Best Squad of the Year from an Asia-wide industry event and Best New KFC Restaurant Design across Asia.

“It is heartening to see that the team’s extraordinary work in setting up this strong and impactful business so quickly is recognised by our industry and brand peers.”

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Rapid rise

And it is the strength of RD’s team which has enabled it to enjoy a packed period of growth since its inception.

The company was formed in late 2016 by a consortium of Thai, Japanese and Southeast Asian investors who won the bidding process to acquire 128 KFC restaurants in Thailand. The restaurants were being sold by Yum! Brands, as part of its global strategy to have outlets owned and operated by franchisees.

In less than three months the firm successfully executed what Norton describes as the most exciting, challenging and rewarding chapter of his career.

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I started by putting together an awesome leadership team to head up the key functions. That team and I have been together since day one and we have built this business together”

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“We have invested very heavily in developing and promoting our inrestaurant teams into leadership positions”

He explains: “In the time after winning the bid we had to quickly set up a restaurant support team responsible for the functions that work with operations to run the restaurants – functions like training, payroll, finance, marketing, supply chain, construction, real estate management and so on.

“I started by putting together an awesome leadership team to head up the key functions. That team and I have been together since day one and we have built this business together. We work incredibly well as a team with a mix of skills and styles that complement and balance each

other, and everyone has the same commitment and passion to RD and to KFC. “We quickly built a strong corporate structure to support our restaurants and almost everyone who joined us in those first few months over two and a half years ago are still with us today.”

The initial group of 128 stores were concentrated in Bangkok and southern Thailand, the company now expanding into the populous north eastern part of Thailand and continuing to strengthen its core geographic presence at the same time.

“We have grown significantly since that first day,” Norton continues. “We

have added over 1,000 employees and more than tripled our restaurant support team headcount. We now have nearly 4,000 people working in RD and that is growing literally every day as we continue to rapidly expand.”

Gaining momentum

Such rapid expansion is evidenced in last year’s figures.

Through 2018 RD opened 29 new KFC restaurants, far more than other QSR brand in Thailand and in line with the company’s ambition to reach 200 outlets by the end of this year.

Quality is equally as important as quantity, however, and Norton

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Andrew Norton, CEO of Restaurants Development Co.

SHARING IN SUCCESS As well as staff, local communities have also benefitted from the company’s successes.

Its CSR activities are coordinated with other KFC franchisees in a bid to deliver a consistent and impactful programme.

This includes provision of financial support to staff and communities impacted by natural disasters, while RD is using its kitchen design expertise to support many local charities in the upgrade their facilities so they can continue to feed those in need.

The most significant initiative, however, is called Harvest, a programme which runs across Thailand and other KFC markets around the world. Through this scheme RD donates surplus food to local charities and organisations who help deliver meals around the country. RD is currently expanding this programme to support more charities in the south of Thailand.

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outlines the example of an ongoing store remodelling programme as a key priority running alongside raw expansion.

He adds: “By the end of 2019 virtually every restaurant in our portfolio will have the latest customer experience which includes a faster service system, a modern and distinctive restaurant design and, something our customers love, a free refill beverage station giving them unlimited refills with their meal purchase.”

The success of this upgrade and growth phase will be a testament of RD’s network of suppliers, companies which the CEO is quick to commend.

“We have a fantastic relationship with our suppliers,” Norton continues.

“Most of them have been working in partnership with us since day one.

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“As we are a rapid growth business, we offer suppliers the chance to grow with us and many suppliers are reporting rapid volume increases as a result of our success. We believe that any relationship has to be a win-win opportunity for both parties, and we are happy to see our suppliers share in our success.”

An example of this joint journey concept is with logistics provider Linfox, an important cog in the RD operation ensuring supplies reach their stores in a timely manner.

Hungry for more

A reliable network of partners coupled with a loyal, motivated workforce will ensure RD grows even more strongly than it did in 2018, Norton stating plans to open 30 more restaurants and for a second year in a row increase

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“We provide people with great tasting, freshly prepared meals in a way that is convenient and affordable to as many people as possible”

turnover and profits by double digit rates.

“We will continue to be one of the fastest growing restaurant companies in Thailand and a leading innovator and operator of the brand in the region,” he adds.

Indeed, the unequivocal appraisal of the QSR scene that Norton gave at the beginning is just one of several factors keeping him motivated to work towards these goals.

He concludes: “I believe in the value of what we do. We provide people with great tasting, freshly prepared meals in a way that is convenient and affordable to as many people as possible. By doing so we bring people together to enjoy meals all around Thailand.

“Our business is also a people business. More so than most. Our

build great careers and reach their true potential.

“I think, above all else, the story of RD’s success and rapid growth is what happens when you bring together a team of talented committed individuals with a shared passion and a shared goal to make an awesome brand even stronger. When we do this right all of our stakeholders win – our employees, our suppliers, our customers and our investors.”

people make our products, deliver our service and support our restaurants.

I am extremely motivated every day to have a strong and fast-growing business to create career opportunities for all. In doing so, our employees

Restaurants Development Co. Tel: +66 2-030-0079 www.rdthailand.com

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Restaurants Development Co..

8 T-ONE Building 18th Floor, Unit 1-4 Soi Sukhumvit 40 Prakanong, Klongtoey Bangkok 10110 Tel: +66 2-030-0079 www.rdthailand.com

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