The Profits of Fast Food Restaurants in Thailand

[GLCQuantum]

Please bear in mind that a burger from 1 of these outlets on say Pet'buri Rd in BKK is 30% cheaper than the very same item in HH.

I didn't know this...

So, the same fast food restaurant can't even follow the same pricing structure - Amazing Thailand.

One question though still. Does anyone have any idea of the opening cost of these kind of fast food joints? They all have different machinery needed (some may be more expensive than others) but they all have the same staffing costs.

If I can join the slave labour train, like all other successful businesses do in Thailand (yes, many of our forum members too), I'm gonna do just that.

[Chromeman]

A Big Mac in Norway is supposed to cost (just the burger) 48 NOK or 257 baht.

[GLCQuantum]

A Big Mac in Norway is supposed to cost (just the burger) 48 NOK or 257 baht.

I honestly didn't realise they had become that expensive anywhere. With the cheaper rent and a tenth (at least) of the staffing costs here, while still being just as popular if the location's right, a Macdonalds here still gives you a massive profit in comparison.

[Chromeman]

A Big Mac in Norway is supposed to cost (just the burger) 48 NOK or 257 baht.

I honestly didn't realise they had become that expensive anywhere. With the cheaper rent and a tenth (at least) of the staffing costs here, while still being just as popular if the location's right, a Macdonalds here still gives you a massive profit in comparison.

I guess the McThai corporation takes a big piece of that surplus...

[Takiap]

I think if there was that much money to be made, we'd see more rich Thais opening these places. KFC might be a good deal, but I doubt McD and BK are anywhere close in turns of profit.


Also, as the previous poster pointed out, McD Thailand probably take most profit anyway. I know that 7/11 in Thailand is firmly in the hands of CP, and they are ruthless towards those who run a 7/11 store. In fact, if you open a 7/11 here you are nothing but a store manager.

[Pleng]

If I can join the slave labour train, like all other successful businesses do in Thailand (yes, many of our forum members too), I'm gonna do just that.

Good luck. I think you should totally do it. I image you'll be a great success.

[GLCQuantum]

I think if there was that much money to be made, we'd see more rich Thais opening these places. KFC might be a good deal, but I doubt McD and BK are anywhere close in turns of profit.


Also, as the previous poster pointed out, McD Thailand probably take most profit anyway. I know that 7/11 in Thailand is firmly in the hands of CP, and they are ruthless towards those who run a 7/11 store. In fact, if you open a 7/11 here you are nothing but a store manager.

Rich Thais generally just open factories. A lot more money to be made there but a huge initial investment to start it up. You're probably right about the company itself taking most of the profit in regards to the fast food outlets. Ho hum...

I think I'll just open up 10 of those 'Gai Haa Dow' (Five Star Chicken) places as I've been told that, after paying a daily rate to the seller, they pull in around 15,000 baht a month on average (some are obviously more profitable depending on location) so that would bring in a cool 150,000 a month while doing pretty much nothing. Only problems of course would be finding 10 reliable staff.

[STEVE G]

From what I've seen, the biggest problem to operating any kind of retail business in central Hua Hin is the price of property. Buying it is a pretty large investment out of most peoples reach and renting leaves you at the mercy of unscrupulous landlords with little protection which makes spending a lot on fitting a business out a bit of a risky proposition.

[oakdale160]

Retention of staff is a huge problem, may of course be related to low wages. I knows couple of farang who have opened businesses with the attitude---- first six months will be hard, i'll have to work every min that we are open till the staff are trained, then I can scaleback--- never happens.

[J.J.B.]

If I can join the slave labour train, like all other successful businesses do in Thailand (yes, many of our forum members too), I'm gonna do just that.

Good luck. I think you should totally do it. I image you'll be a great success.

[kendo]

Mac Donald's in Hua Hin were giving away extra breakfast muffins last week we just paid for our meals and got the extra muffins. I have never come across a promotion like that in Thailand before happy days .

Kendo.

[GLCQuantum]

From what I've seen, the biggest problem to operating any kind of retail business in central Hua Hin is the price of property. Buying it is a pretty large investment out of most peoples reach and renting leaves you at the mercy of unscrupulous landlords with little protection which makes spending a lot on fitting a business out a bit of a risky proposition.

Very true that, so I think the 'Five Star Chicken' option would be easier as you just pay a thousand or so in rent a month to stick the stall on the street somewhere. Dot a few around Hua Hin, Cha-Am and Petchaburi and you should be laughing (I've never seen a 'Five Star Chicken' stall have any leftovers at the end of the night.) The opening of the stalls don't cost much either.

Retention of staff is a huge problem, may of course be related to low wages. I knows couple of farang who have opened businesses with the attitude---- first six months will be hard, i'll have to work every min that we are open till the staff are trained, then I can scaleback--- never happens.

And therein lies the brick wall. I know a fair few owners of 5* Chicken stalls (You can't beat their spicy chicken ) but they mostly have members of their family operate the stall when they want a break. They (the stalls) just need a single person to run it from about 12:00 - 20:00. Problem being is if they up and do a runner you are tied into a contract with CP Group with no-one to sell their chicken and you will be out of pocket until you find a new member of staff.

[Chromeman]

Probably better to sell QuantumChicken?