Minor Food Launches Chiho Ramen Brand Starting at 99 Baht

Minor Food is expanding its business portfolio by launching Chiho Ramen, its first Japanese food brand in the portfolio, with prices starting at 99 baht to target consumers who are cautious about spending. The company is also opening franchise opportunities from the outset, aiming to rapidly expand to 100 outlets within three years amid economic pressures and rising restaurant operating costs.

New Brand Entry Targets Affordable Ramen Market Thanat Ekvechavit, Chief Business Development Officer of The Minor Food Group Public Company Limited, stated that Chiho Ramen is the first Japanese food brand in Minor Food's franchise portfolio in Thailand. The brand is positioned with easy-to-understand menu items, accessible pricing, and flavors adapted for Thai consumers. The first branch is scheduled to open on October 30 at Lotus Sukhumvit 50, with starting prices of 99 baht and additional price points of 109 and 119 baht to provide more options for consumers during a period when purchasing power remains a key factor in spending decisions. The restaurant format uses approximately 80-100 square meters with an investment of around 4 million baht. The company targets 90-100 branches within three years. Minor Food will use the first self-invested branch as a prototype to build confidence before offering franchise opportunities from the brand's early stages.

Accelerating Franchise Growth for Business Agility The launch of Chiho Ramen is part of a strategy to create new brands and add growth channels through franchising, which allows the company to expand more nimbly. Currently, Minor Food operates over 3,000 outlets across 27 countries with more than 40 brands. In Thailand, the company has seven franchise brands: The Pizza Company, Dairy Queen, Swensen's, Bonchon, Kaga, Steak & More, and now Chiho Ramen. Franchise outlets account for roughly 50% of all branches, and increasing this proportion is seen as a key path for future expansion. Additionally, Minor Food is collaborating with partners such as Bangchak Corporation Public Company Limited (OR) and CP Extra, operator of Makro-Lotus wholesale and retail, under a Corporate Franchisee model to increase consumer access through petrol stations and retail locations. This partnership could potentially extend to international markets if opportunities and suitable business models arise.

Challenging Economy Drives Sales Growth and Cost Management Thanat noted that overall business in the first half of the year grew about 4-5% amid economic challenges and weakened purchasing power. The company is pursuing multiple parallel strategies: launching new brands, expanding outlets, increasing same-store sales, and creating differentiation to gain market share. At the same time, the business faces pressure from raw material costs rising approximately 3% after price risk management, and logistics costs increasing around 10%. Although logistics represents a small portion of total costs, it remains a factor requiring close monitoring and management. The company is therefore developing brands and store formats to serve diverse customer groups, particularly the concept of affordable food paired with a franchise model that enables faster network expansion. Beyond Chiho Ramen, Minor Food is also expanding the Bonchon business overseas, leveraging the Korean culture trend and opportunities in new markets as growth drivers. This reflects Minor Food's direction to leverage its restaurant business expertise to expand through both brand creation and international growth.