Five Star Chicken Restaurant Chain To Add 150 Outlets In 2016

Five Star Chicken, the Thailand-based restaurant chain is all set to expand its outlets by 150 this year. The quick service restaurant will be opening new outlets to add to its existing 353 outlets in the souther markets. Five Star Chicken also has plans to introduce new items on the menu as well as selling processed and packaged chicken meat items to hotels and restaurants to diversify its portfolio. 

Southern Hit

Five Star Chicken is part of CPF India, a subsidiary of Thailand’s Charoen Pokphand Foods, and has several outlets primarily focused on the Southern regions. The outlet has a huge presence in Karnataka, specifically Bangalore and Kerala. Speaking to The Hindu, Rijoy Prabhakar, Assistant Vice President of CPF India, said, “We have established ourselves as a neighbourhood brand offering quality chicken at affordable prices. We have a huge market share in Bengaluru, Karnataka and Kerala. We could not replicate it in Chennai as some of the outlets are located deep inside the residential areas. We are reassessing the situation and will come out with more offerings.”

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Increasing Its Reach

CPF India has continued to invest on expanding its reach to its wide ranging customer base in the country. With tie-ups for home delivery with online-based platforms like Zomato and Foodpanda and with plans to open several retail outlets this year, CPF is hoping to increase its market share in the fast growing QSR segment in India. “In 2016 we plan to increase our network adding around 150 outlets. The focus will be mainly on the southern markets where we will be consolidating our presence before reaching out to other regions,” said Prabhakar. 

New Menu

The company also has plans to expand and differentiate its menu from similar restaurant chains like KFC by introducing new flavours, with a distinct focus on regionally flavoured items. On diversifying its menu, Prabhakar noted that “right now, the outlets sell ready-to-eat chicken items such as crunchy masala, Thai crispy and burgers. As some of the customers do not eat chicken every day, we will start offering regional flavoured menu such as biriyani, snacks and parathas along with a whole new range of burger products. This will alter the menu and 30 per cent of it will be vegetarian items.”

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Franchise Favourite

Nearly 90 percent of the outlets are owned by franchisees and CPF plans to enter other markets by setting up outlets on its own in hopes to lure potential new franchisees in several cities. Currently, there are over 350 outlets present across the South region with more planned this year. Of the planned 150 outlets, Chennai will be getting close to 50 outlets taking the number up to 95 total in the state of Tamil Nadu. Prabhakar revealed that “from January to December 2015, we clocked sales of Rs.52 crore and this year, we expect to do Rs.60 crore. The investment for the opening up of new stores will be about Rs.18 crore and this will be done by the franchisees.”

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