Johannesburg - Chai Lekcharoensuk, MD of Cape Thai Restaurant Holdings, talks to My Business about the challenges of growing his Thai-themed business and gives advice to small- and medium-sized enterprise owners on how to cope during the recession.
What is Cape Thai Restaurant Holdings?
We are a group which manages three Thai restaurant chains - Wang Thai, Chai Yo and Simply Asia. All three have a presence in the Western Cape, while Simply Asia also operates in Gauteng. Some Simply Asia stores are owned by franchisees.
Who are your business partners?
I run the business on my own, but view the suppliers and franchisees as my partners.
How did the business start?
Cape Thai Restaurant Holdings started after the first Wang Thai opened in September 1993. This chain expanded, with more branches being opened.
Eventually Chai Yo restaurants were opened to aim at a different market and soon the Simply Asia concept was born.
We decided to franchise the Simply Asia stores, as we already had too many (21) to manage. We knew that franchisees who had a vested interest in the store's performance would be more hands-on and look after their customers.
What has been the biggest challenge getting the business off the ground?
Our biggest challenge has been trying to get the brand recognised, and to maintain high food quality and service at all branches in all three chains.
What challenges does the company face and how is it trying to overcome them?
We are a young franchise group, so our challenge is learning how to work with franchisees. To overcome this, we have employed a consultant firm to advise and give us the right strategy.
How many people do you employ?
In our central kitchen and head quarters we employ about 100 people.
Any business person you admire?
Allan Ambor, for the way he has built and run Spur Corporation. He also gave me very valuable advice two years ago which I often take into consideration.
Have you always wanted to be self-employed?
Yes, there is great satisfaction that comes with that. I like the fact that I can set my own goals.
Do you have any business achievement you are particularly proud of?
The restaurant chains have achieved many awards for making great food, but I am very ambitious and would like to continue to improve on food quality and growth within the group.
Do you have advice for budding entrepreneurs?
Turn every loss or mistake into a gain by learning from it and not repeating it. Listen to all good advice, no matter who it comes from.
Looking back, are there any skills you wish you had developed before you went into business?
If I had known then what I know now, I think I would have been a lot closer to my goals.
The business environment is extremely tough for small businesses. Do you have suggestions on what SMEs could do to see through the tough times?
I would suggest they relook their expenses and determine where they can trim down, without compromising on quality or transferring expenses to their customers.
They should prepare and follow a strict budget and train staff to be more efficient and become more productive.
What makes you get up in the morning?
I'm a very driven person and love the idea of trying to reach my goals. I enjoy working with my suppliers and franchisees to work out ways to improve our business and overall turnover.
- Fin24.com