2017 was a year that the Company has faced the number of challenges due to economic situation and intense competition in restaurant business. High number of new entrants to the restaurant business resulted in varieties of restaurants with various brand identity. Plenty of new restaurant brands open as an alternative choices for customers. The Company exercised our strategies to improve our brand image, new menus, offer sales promotion, and improve our services including resources management to pursue effectiveness.
The Company’s operations in 2017 can be summarized as follows:
- Launching a new brand: Toomato Italian Kitchen, an authentic Italian food restaurant in the 4th quarter with the successful introduction, the Company plans to expand in locations that will serve both the expat and local community.
- Planning and in the process of launching new brands to diversify the portfolio with the introduction of more new brands which will serve different target group of customers as well as aim to expand the growth of business to the premium market by changing the brand identity and increasing food quality and services to meet customer requirement.
- Focusing on cost management and control together with improvement of services, menu and the taste of the food. The measure includes reducing the square meter in some stores to reduce proportion of rent, closing the stores that are missing sales target to reduce the burden of loss. Moreover, the Company renovated 2 stores to improve the brand image, menu and service to make the stores a pilot and prototype of other stores in other locations.
- Issuing capital increase ordinary shares offer to the existing shareholders proportionate to their respective shareholdings (Right Offering) and to specific person (Private Placement), then the paid-up capital of the Company is Baht 121,800,000, an increase by Baht 20,300,000 to enhance the financial position.
- According the Company’s operating performance in 2017, the Company’s total revenue was Baht 1,847,880,284 decreased by 10.67% compared to 2016, net loss was Baht 222,304,114 increased by 49.98% compared to 2016. The Company has total assets of Baht 533,167,185 and total debt of Baht 499,783,106 on December 31, 2017.
Thailand economic in 2018 is expecting to further expand benefit by the recovery of the world economic and higher number of foreign tourists were forecasted to travel to Thailand accompanying by the accelerate investment supported by the government and the better trend of local consumption. However, among these positive factors to restaurant business, the Company is still cautious on effective cost management system, quality of service as well as quickly adapt its’ strategies to high competition.
On behalf of the Board of Directors, we are gratefully thanks to our Board members, Executive Committee, employees for your performance, dedication and initiation, as well as the moral support and full effort in this transition period of the Company. We would like to express our sincere appreciation to our shareholders, customers, financial institutes, business alliances and all stakeholders for your support and be by our side throughout the year. Lastly, the Company promises to insist and develop consistently for the stability and growth of the business along with adhering to principles of good governance.