Chennai: Thailand-based multi-national $45 billion Charoen Pokphand (CP) group is expanding its quick service restaurant (QSR) Five Star Chicken network in its core Indian markets while adding new items on the menu, a senior official said.
The group will also start selling processed and packaged chicken meat – sausages, patties, and nuggets – to institutional segments like hotels and restaurants.
The multi-product conglomerate CP group is an integrated player in the hatchery business, starting from feed mill, breeding, farming (live animals), processing and QSR generating revenue of around $13 billion.
The group also has interests in telecom, retail and other sectors.
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“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 Rijoy Prabhakar, assistant vice president CPF (India) and head, Five Star Chicken business.
He said the company is looking at small towns, amusement parks and malls for housing the QSR.
Currently there are around 353 Five Star Chicken outlets spread across the southern states.
“Nearly 90 percent of the outlets are owned by franchisees while the remaining by the company. We set up our own outlet when we enter a new market so as to prove the concept to potential franchisees,” Prabhakar said.
Stating that the cost of food at Five Star Chicken outlets are around 30 percent cheaper than other fried chicken outlets, Prabhakar does not agree that CPF (India) is a price point player.
“Ours is a small outlet format and hence the outgo towards lease rental is low. Further the economies of scale derived by being an integrated player are being passed on to the customer,” he said.
According to him, supplying processed meat to hotels and restaurants will not result in conflict of interest though the group runs the fried chicken chain.
“We have been supplying chicken to even leading fried chicken chains in many other markets,” Prabhakar said.
Queried about the menu card he said a bigger pack chicken and vegetable biryani while the focus will also be on burgers and rolls.