To be a global operator of multiple food brands with
the objective of providing 100% satisfaction to all stakeholders
  • Overview of
  • Sector Overview
    and Competition
  • Performance Highlights
    and Development Plans

Through its subsidiary, Minor Food Group Pcl., MINT has one of the largest quick service restaurant operations in Asia, with almost 2,000 restaurant outlets in Thailand, the Middle East, Asia and Australia. As the first to introduce international-style pizza to Thailand in the early 1980's, Minor Food has always been recognized as an innovator and pioneer in the Asian food services sector, with a passion for developing its restaurants into market leaders. Today, the restaurant brands include:

Quick Service Restaurant Portfolio

  1. The Pizza Company
    When it opened in 2001, The Pizza Company was quickly recognized as a one of the pioneers in the Asian food service industry. It introduced a fresh and innovative approach to pizza by offering customers over 20 different delicious toppings that are richer and zestier than the competitor's, together with a selection of great-tasting cheese blends and inviting appetizers to enhance the total pizza experience. From the first day that it opened, The Pizza Company has been the market leader in the dine-in, delivery and take-away businesses, with its delicious food and attentive service consistently being recognized by diners as the very best in the market. Not one to rest on its laurels, The Pizza Company has continued its commitment to customer satisfaction by introducing new innovations, and in 2004 began to expand its franchise internationally. Today it is well on its way to becoming one of Asia's best known pizza brands.
  1. The Coffee Club
    From a single store, which opened in November 1989 at Brisbane's Eagle Street Pier, to more than 400 outlets across Australia, New Zealand, Maldives, China, Egypt, Thailand, Malaysia, Indonesia and United Arab Emirates, The Coffee Club has established itself as an iconic household name and preferred venue for millions of coffee drinkers throughout the Asia Pacific region. The idea was to create more than just a place where people could meet for coffee; it aimed to provide a relaxed meeting place that is casual but sophisticated, stylish yet affordable. With over 6,000 employees serving more than 40 million cups of coffees annually, The Coffee Club is Australia's largest home-grown café group, and is widely known for its good food, great service, and excellent coffee. The Coffee Club offers three types of dining experiences: a fully-licensed, extended-hour café bar/restaurant with full table service and an extended menu that includes chef's choice options; a Club Store, which is typically located in high-pedestrian areas that focuses on light meals and snacks with counter service; and The Kiosk, a counter service shopping centre option. Today, Minor Food holds 70% stake in the company, fueling its international growth.
  1. VGC Food Group
    owns three retail food brands, namely (1) Veneziano Coffee Roasters; (2) The Groove Train; and (3) Coffee Hit. Veneziano is a leading specialty roasting house supplying over 500 tons of freshly roasted coffee annually. The Groove Train is a casual dining franchise system offering quality food and beverage in a ‘funky/modern' atmosphere, while Coffee Hit is a specialty coffee franchise system offering an enhanced retail coffee experience to customers via beverage and whole-bean trade.
  1. Thai Express
    Established in 2002 in Singapore, Thai Express is one of the world's largest modern Thai restaurant chains. The concept is inspired by the needs of customers who want to enjoy authentic Thai cuisine at reasonable prices in a relaxed yet contemporary environment with no strict rules on decorum. At present, Minor Food holds 100% stake in Thai Express, which has since expanded to six other countries in Asia. In addition to its leading Thai Express brand, Thai Express also operates Hong Kong concept restaurant Xin Wang Hong Kong Café, French concept restaurant Poulet, and other brands.
  1. Riverside
    Established in 2005, Beijing Riverside & Courtyard (“Riverside”) is a distinctive chain of casual-concept restaurants in China, specializing in Sichuan barbecue fish. It has built up strong brand equity and customer loyalty for traditional sizzling fish dishes, combining countryside cooking with well-groomed service and contemporary decoration. With its popularity, it has expanded its restaurants rapidly across Beijing and Shanghai.
  1. BreadTalk
    BreadTalk has brought about a renaissance in the bread business, with multiple awards testifying to its branding and business successes. Each BreadTalk bears the urban, clear glass, clean cut look punctuated subtly with detailing of contrasting colours of artworks, unique to each locale.
  1. Swensen's
    In 1986, Minor Food took on the franchise for Swensen's, the beloved ice cream parlor established in San Francisco in 1948, and developed it into Thailand's largest premium ice cream brand. Under Minor Food's direction, the Swensen's brand has evolved from simple scoops to a variety of sundaes, and today it provides consumers all over Asia with an ice cream experience no other brand can provide. Minor Food acquired the master franchise rights to 32 countries across the Middle East and Asia, with the first launch of the international franchise in 2004.
  1. Dairy Queen
    Minor Food opened the first Dairy Queen in Thailand in 1996. Dairy Queen is famous for their soft-serve ice cream distributed through kiosks in shopping malls and modern trade outlets throughout Thailand. Minor Food started to franchise the Dairy Queen brand in Thailand in 2011.
  1. Sizzler
    First opened in Thailand in 1992, Sizzler offers a self-service salad bar that few can copy, and a wide range of grilled dishes including steak, seafood, chicken, ribs, combination meals and burgers. In addition to Thailand, Minor Food has a 50:50 joint venture with Sizzler's parent company to license the concept on a long-term basis in China.
  1. Burger King
    Minor Food is the master franchisee of global burger brand Burger King in Thailand, Maldives and Myanmar.
  1. SSP
    Minor Food has a joint venture with SSP International, the Food Travel Experts with over 60 years of experience, to operate restaurants in airports in Thailand under Minor Food, as well as various other external brands.

Dairy Product Manufacturing

To ensure the availability and reliability of its key raw materials, Minor Food has two manufacturing plants which produce high quality, specialized cheeses and ice cream for Thai and international markets. Minor Dairy Limited and Minor Cheese Limited were founded in 1991 with manufacturing facilities in Nakornratchasima province.

  • Minor Dairy Limited
    MDL produces a variety of premium ice cream products and toppings for food brands under Minor Food such as Swensen's, Dairy Queen and Burger King, as well as supplying the same quality ingredients to leading customers outside the group.
  • Minor Cheese Limited
    MCL produces a wide range of cheeses and cheese blends including mozzarella, cheddar, string cheese, Parmesan, mascarpone, cream cheese and sour cream. MCL is not only a key supplier to various restaurant operations of its parent, Minor Food, but is also a major supplier to companies in the Thai and regional food services sector.
Extract from Annual Report 2015

In 2015, Thailand's economic recovery remained lackluster. Growth continued to be reined in by weak private consumption and investment and the absence of growth in exports. Household debt remained high and the country's future political path was still uncertain. Consequently, consumer confidence had tumbled, declining for nine consecutive months to a 16-month low in September 2015. The abovementioned challenges took a toll on several smaller restaurant operators across the industry. Nevertheless, Minor Food Group remained comparatively resilient, given our dominant market share in most food categories/segments in which we operate and our solid operational platform and business network.

Nonetheless, consumer confidence rebounded in the last quarter of the year, following a series of government stimulus measures, which enhanced economic growth prospects. Such indicators suggested the economy had bottomed out and began to recover. The National Economic and Social Development Board (NESDB) projects the economy will grow by 2.8 - 3.8% in 2016, supported by an acceleration of government expenditure and investment, positive contributions from stimulus packages and depreciation of the Thai Baht. Low oil prices will provide room for an accommodative monetary policy, while growing tourism will also be a positive factor for the prospects of 2016. Minor Food Group's scale and efficiency have always proven a boon when facing headwinds. Likewise, we expect these advantages to propel us into the economic rebound of 2016.

Outside of Thailand, the long-term economic trajectories of countries in which we operate remain favorable. The economic growth of Australia is projected to recover to around 3% in 2017. Ongoing decline in resource sector investment will be compensated by increasing consumption, nonresource sector investment and exports. Weakening of Australian dollars, historically low interest rates and lower oil prices should stimulate faster growth in household spending and business investment.

In China, growth will gradually soften to approximately 6 - 7% in 2016 and 2017. Nonetheless, growth will remain higher than other developed economies and China still has considerable room to grow in the long run. Its future success, like its past accomplishments, will hinge on continuous execution of essential yet often difficult policies and reforms.

Finally, growth in Singapore is likely to be modest going into 2016, with the economic forecast to expand between 1 - 3%, as the country navigates through a challenging external environment and enters the next phase of economic restructuring. Singapore is facing hurdles as the country transitions towards a growth model that relies less on low-wage foreign workers, which has resulted in a tight employment environment that has put pressure on labor-intensive businesses. The economic restructuring should lead to productivity gains that are underpinned by knowledge and skill upgrades, which should be beneficial to the country in the longer term.

Comparative Market Share of Western Casual Dining in Thailand
Revenues (Baht million) 2013 2014 2015F
Revenue (%) Revenue (%) Revenue (%)
Café 4,833 10.1 5,288 10.5 6,235 11.1
Casual Dining 20,271 42.2 20,715 41.1 22,164 39.5
Fast Food 17,679 36.8 18,642 37.0 21,278 37.9
Ice-cream & Bakery 5,277 11.0 5,756 11.4 6,458 11.5
Total Market 48,060 100.0 50,401 100.0 56,135 100.0

Source: Top 500 food & beverage companies from Ministry of Commerce and company estimates
Remark: Minor Food Group sales include sales of its domestic franchisees
Note: F = Forecast

2015 Estimated Market Share of Minor Food Group (MFG) in Thailand

Minor Food Group Revenue
Extract from Annual Report 2015
Performance Highlights and Development Plans

In 2015, revenue of the Minor Food Group increased by 21% to Baht 20,339 million from Baht 16,754 million in 2014, primarily attributed to outlet expansion of 8% during the year, particularly in Thailand and China, while same-store-sales were flat compared to last year. Most major food brands exhibited favorable performance with total system-wide sales increasing by 12% to over Baht 40 billion in 2015. In spite of domestic and overseas challenges, the Group's EBITDA increased by 70%, mainly as a result of the gain on fair value adjustment of change in status of investment in Minor DKL, strong growth of franchise business and solid performance of Thailand hub. The gain on fair value adjustment reflected the Group's successful effort in enhancing the value of its restaurant investment in Australia. Our leading market position and proactive strategies to stay ahead of competition, as well as our diversified portfolio of brands, food categories and geographies also contributed to our resilience, particularly in Singapore where we saw consumption slowdown and intensifying competition. Minor Food Group currently operates 1,851 restaurants in Thailand, Singapore, Australia, China and 15 other countries under a diverse portfolio of over 20 brands. Of total restaurants, 957 are company-owned while the remaining 894 outlets are franchised.


Collectively, our Thailand business achieved a 2.1% average same-storesales growth and 11.0% system-wide sales growth in 2015, despite sluggish economic backdrop and a slowdown in consumption, which had an industrywide impact on many restaurant operators in the country, particularly smaller ones. Most of our brands in Thailand reported positive total system-wide sales growth, with Burger King, The Coffee Club and The Pizza Company leading the pack, attributable to our dynamic expansion and agile marketing strategies to sustain market lead. While Thailand continued to be our principal market, its contribution to total Minor Food Group revenue declined from 81% in 2008 to 66% (excluding gain on fair value adjustment) in 2015, as a result of our overseas expansion and diversification strategies. We currently operate 1,184 outlets in Thailand mainly under The Pizza Company, Swensen's, Sizzler, Dairy Queen, Burger King, The Coffee Club and BreadTalk brands, capturing a significant share of the Thai casual dining restaurant market. Among our total outlets in Thailand, 775 are company-owned while the remaining 409 outlets are franchised.

The Pizza Company, which continues to make the largest revenue and profit contribution to our Thailand business, saw its total-system-sales improve 12.5% partly as a result of the launch of the Crispy Thin Pizza and the new 48 dine-in menus, which were well received by consumers. The campaign's success underscores our ability to offer the right product at the right time and price, all amidst an increasingly competitive market. As for other international brands in our portfolio, we also continued to open new outlets of Burger King in local-driven locations, primarily in the suburbs of Bangkok, resulting in higher traffic of local customers. The broadening of our focus from mainly tourist-driven locations to those that capture more domestic consumers, together with our initiative to open drive-thru outlets, yielded satisfactory results, with the brand exhibiting a strong 28.6% growth of total-system-sales. Sizzler continued its reign as a local favorite and consistently exhibited steady and strong performance with both samestore- sales growth and total-systemsales growth staying in positive territory for more than seven years in a row. The brand's effective customer targeting and product offering resulted in traffic increase of over 5% in 2015. Notably, Sizzler achieved growth in all regions of Thailand.

In the second half of 2014, Minor Food Group established a joint venture company, BTM Thailand, with the BreadTalk Group, a listed company in Singapore, to operate the bakery business under the BreadTalk brand in Thailand. The joint venture currently operates 24 BreadTalk outlets in Thailand. Leveraging on Minor Food Group's established platform and solid operational excellence in Thailand, BTM Thailand achieved total sales growth of 56.1% and comparable sales growth of 31.8% in the fourth quarter of 2015 compared to the same period last year. Additionally, its operating profit turned positive in 3Q15 and the future outlook appears promising. With the combination of BreadTalk's strong brand recognition and Minor Food Group's profound local knowledge and solid operational excellence, BTM Thailand sees vast growth potential over the next few years through new outlet expansion, initially with the company-owned business model and later with franchised model.

We are also proud to be a big part of the newly renovated section of Don Mueang International Airport, as we have successfully secured more than 2,000 square meters of space to operate restaurants under numerous brands. Our trusted brands, professionalism and operational excellence have afforded us this great opportunity. Through our associated company, Select Service Partner Limited (SSP), we opened 13 restaurants at the end of 2015 with over eight more restaurants scheduled to open in 1H16. With bright tourism outlook from both domestic and international travelers, we expect this project to contribute well to the Group, potentially bringing in up to Baht 1 billion in revenue to our associate, SSP.

For our expansion activities, regional hub structure was established in countries where we have a cluster of our restaurants, including Australia, China and Singapore, with an aim to mitigate business risk and ensure business continuity. Additionally, we have expanded our footprint under international franchise and jointventure business models into 15 other countries across the Middle East, India, Indian Ocean, Southeast Asia and the United Kingdom. Our sights are set on building a geographically diversified portfolio that will safeguard us from market-specific disruptions. This diversification strategy has already helped us overcome country-specific economic fluctuations and allowed us to deliver profit growth to our shareholders. To date we have a total of 667 outlets outside of Thailand, of which 182 are company-owned and 485 are franchised.

In 2015, we increased shareholding in our Australian arm, Minor DKL Food Group (Minor DKL) from 50% to 70%. Following the transaction, we have consolidated Minor DKL's financials into the Group's account, further boosting our near-term and long-term earnings growth. With our larger stake and support, we believe Minor DKL can further leverage on our global operating platform, operational excellence system, supply chain management, product development and international franchise expertise. Since we acquired 50% of Minor DKL in 2008, Minor DKL's restaurant operations expanded from 160 to over 440 outlets and system-wide sales increased from AUD 150 million to over AUD 640 million and it is now one of Australia's largest restaurant businesses. From a single brand of The Coffee Club in 2008, Minor DKL expanded to own a portfolio of multiple restaurant brands, ranging from The Coffee Club, Ribs and Rumps, the Groove Train, and Coffee Hit. It also expanded into coffee roasting by acquiring Veneziano Coffee Roasters which is a leading specialty coffee roasting house that supplies more than 1,500 tons of coffee each year to retail and wholesale customers across Australia. Recognizing the importance of world-class coffee standards, Veneziano Coffee Roasters also provides competition training and support to many of Australia's best known and awarded baristas. In 2015, Minor DKL achieved revenue growth of 14% in Australian dollar term compared to last year. Its profit accounted for 11% of Minor Food Group's profit (excluding gain on fair value adjustment) in 2015. Our further support in the form of an increased stake, together with a vertical integration benefit from Veneziano, lead us to believe that Minor DKL will continue to record stable and strong profitability in the years to come.

Our China hub contributed 14% of Minor Food Group's revenue (excluding gain on fair value adjustment) in 2015 and remains in expansion mode, with the short-term goal of increasing scale of operations and the medium- to longterm goal of improving profitability. Having reached break-even in 2013, the hub reported profit from operations in 2014 and 2015. Total system-wide sales growth of the China hub was robust at 24.1%, as active outlet expansion, particularly of the Riverside brand since our acquisition at the end of 2012, more than offset negative same-store-sales growth. In the second half of 2015, we launched proactive marketing campaign and branding initiatives for Riverside to position the brand as the authentic grilled fish purveyor with 10 years of heritage. The campaign was created to establish leadership position in the grilled fish product category to fend off competition. We also enhanced the overall facilities, both front- and back-end, of Riverside outlets, in response to rapidly changing dining trends, increased sophistication of consumers, and industry benchmarks in China. At the end of 2015, we owned 66 restaurants in China, including 53 Riverside outlets, nine Sizzler outlets, three Thai Express outlets and one The Pizza Company outlet. With Riverside's successful local concept and Sizzler's unique position as a western steak house, we aim for China to become a meaningful contributor in the future, as favorable demographics of an expanding middle class, wealth accumulation, and increasing consumption bode well for Minor Food Group.

Singapore as a country has seen its Food & Beverage Index of the restaurant segment drop year-on-year every month since April of 2015. The casual dining restaurant market was put under pressure by the deceleration of the domestic economy, the decline in international visitors to Singapore, especially Chinese tourists, and the constant flux in consumer taste resulting from intense competition of new food concepts. Despite the lackluster operating environment, our wholly-owned MFG Singapore continues to be one of Singapore's largest and most successful restaurant companies. With 76 company-owned and 15 franchised outlets, MFG Singapore made up 15% of Minor Food Group's revenue. In order to stay ahead of the competition, we proactively took the opportunity afforded by the sluggish macro backdrop to do a major refreshment of our key Thai Express outlets, including new decor, ambiance and menus as well as service and quality improvement to enhance the customer dining experience. The renovation of the first three key outlets has been completed, while remaining outlets are expected to complete in 2016. Following the roll-out of new Thai Express brand concept and Xin Wang's new menu, MFG Singapore reported an improvement of its samestore- sales and total-system-sales in the latter half of the year. The newly renovated Thai Express outlets witnessed traffic improvements within their month of opening.

Apart from Thailand, Singapore, Australia and China, Minor Food Group has grown to operate 124 restaurant outlets in 15 other countries in Asia, the Indian Ocean, the Middle East and the United Kingdom. In 2015, we continued to pursue opportunities to expand internationally through our franchise business model and joint venture partnerships. We, together with S&P, have reached an agreement to form a 50/50 joint venture, Patara Fine Thai Cuisine, in the United Kingdom that will have the franchise rights to develop the Patara and Suda restaurant brands in the UK. We believe the UK market represents an exciting opportunity to expand concepts like Patara and Suda, which have already garnered excellent reputation in London. While direct Thai restaurant competitors do exist, few have expanded to achieve meaningful scale. Thus, we plan to be a leader in driving the development of Thai cuisine worldwide. At the same time, the investment in the UK may eventually support our ambition to expand beyond our core markets of Asia, Australia and the Middle East. Furthermore, we are delighted to have this opportunity to further partner with S&P in a deal that comes almost one year after both companies announced the exciting partnership to launch a culinary institute under the name of “MSC Thai Cuisine Company Limited”. The institute, which comprises MSC Thai Culinary School and the consulting unit, MSC Thai Cuisine Academy, is the premier learning institution in Thai cuisine for both professional and non-professional individuals. MSC Thai Cuisine Company Limited will support the development of the Patara and Suda restaurants in the UK by serving as a training center and overall center of excellence.

Elsewhere, we continued to add three equity-owned restaurants under The Coffee Club brand in the United Arab Emirates under the joint venture partnership with Al Nasser Holdings, whose main objective is to expand the restaurant business in the Middle East and North Africa region, bringing the total number of The Coffee Club outlets under this joint venture to four currently. We added one equity-owned restaurant in the Maldives, resulting in a total of nine outlets in this country. We also aim to further expand our operation in India after we assumed a 70% ownership in Swensen's operation in the prior year. Same-store-sales of MFG India exhibited a strong growth of 40.9% in 2015. In the future, with a view to achieve a greater degree of diversification and globalization, Minor Food Group will continue to develop businesses in the markets where we currently operate and also actively explore overseas development opportunities.