Issue 52

 

 

With consistent annual growth of 20%, Thailand’s franchise industry offers great opportunities for budding entrepreneurs.

“A franchise can be a good option for anyone wishing to make their own business, especially a new graduate who doesn’t want to be an office worker,” Saward Mitaree, president of Franchise & License Association and Founder of Smart Brain, says. “Being a franchisee could help them learn how to do business and later they can initiate their own ones.”

The franchise industry has grown rapidly in the past decade, and Mitaree anticipates there will be greater growth and fiercer competition in the future as many new franchises enter the market and people are eager to have their own business.

Data from the Business Development Department of the Ministry of Commerce reveals that the franchise market totalled US$7 billion (250 billion baht) in 2015. This represents about 9% of Thailand’s total retail business.

According to Thaifranchisecenter.com, Thailand has 505 franchise brands in 2016, with food, beverage and ice-cream brands accounting for 45.15% (or 228 brands) of the total and educational franchises accounting for a further 17.43% (or 88 ). In terms of the number of brands, the industry has grown on average 20% each year over the past 10 years.

“To be successful in this business, you must have good planning, learn the franchise system thoroughly and work according to your plan,” Mitaree explains. “Thai food is well-known in the global market and we have a lot of capable chefs. Now, several famous Thai restaurants and coffee shops have expanded to CLMV countries, such as Chokdee Dimsum, Black Canyon and Chai See Bamee Giaw. Thai people are famous for their great service-minded attitude, and this benefits our service sector.”

Smart Brain is an international mental arithmetic franchise founded in Thailand in 1996. Mitaree believes there is much potential for educational franchises, such as cooking schools, spa academies and elderly care services.

As for the Smart Brain franchise, Mitaree plans to establish business hubs in particular regions, for example it will use Kuwait as the hub for the Middle East, and the UK for the European market.

“With our strengths in efficient courses and activities, quality control, R&D, and well-trained instructors, Smart Brain has helped develop children’s concentration, thinking, memory, reading and writing skills,” he adds.

Currently, Smart Brain has 421 centres in Thailand as well as franchisees in Tunisia, Pakistan, Saudi Arabia, the UK and India. It plans to open new centres in Qatar and UAE in July 2016.

For more information, please visit www.smartbrain.com and www.fla.or.th

Words by Somhatai Mosika