Minor International Public Company Limited (“MINT”) announced today that it has acquired an effective 70% stake in Spoonful Pte. Ltd., Singapore (“Spoonful SG”) and Spoonful (Thailand) Co., Ltd. (“Spoonful TH”) in the total amount of Baht 2,483 million. Spoonful SG is the master franchise rights holder of Bonchon in Thailand, while Spoonful TH is the operator of future Bonchon expansion in the country. As a result, MINT has effectively become the operator of Bonchon in Thailand, and the exclusive master franchise licensee with long-term exclusive territorial rights, and the ability to expand and sub-franchise.
The acquisition amplifies MINT’s belief in the growth potential of the fried-chicken market and the unique brand proposition of Bonchon. The deal is a strategic fit for MINT, given Bonchon’s strong global brand, superior financials and tremendous potential for further expansion. In addition, Bonchon will leverage on MINT’s strengths to execute current and future strategic plans, in order to ensure strong and sustainable returns. MINT believes in the future success of the Bonchon brand and targets to have over 150 restaurants throughout Thailand by the end of 2024 (5-year CAGR of over 25%). Leveraging on MINT’s outlet and delivery platform, there is significant opportunity for store expansion, whether in terms of geography, channel or type of outlet. In Bangkok, in addition to existing opportunities in shopping centers and community malls, Bonchon can be expanded into other types of retail space, together with delivery format stores to capture the fast-growing delivery trend. Moreover, Bonchon will be introduced in key cities in upcountry, as there are only 2 stores outside greater Bangkok today.
Bonchon’s growth will be further accelerated through synergies with MINT, including taking advantage of MINT’s solid delivery platform, such as delivery app and delivery fleet. Moreover, with MINT’s established supply chain management, Bonchon can leverage on the centralized sourcing not only for efficient pricing, but also to ensure quality and availability of its raw materials and supplies. Bonchon, through MINT’s infrastructure, can potentially improve its productivity through effective marketing activities and new product development.
Bonchon’s same-store-sales remained resilient in the first two months of 2020 amidst the COVID-19 situation, supported by its strong delivery sales. Bonchon’s superior operating metrics to the market, including gross margin and EBITDA margin, will allow it to withstand the negative operating leverage that could potentially arise from this challenging operating environment.
Mr. Paul Kenny, CEO of Minor Food, commented, “This latest investment in the master franchise rights of the Bonchon brand in Thailand emphasizes our strategy to enhance our portfolio offerings and further strengthen the restaurant business in Thailand. With almost 10 years of presence in the country, Bonchon brings a highly loyal customer base of Thai millennials and Generation Z, which we will further build on.” He added, “MINT will bring Bonchon to another level, leveraging on our strong operating infrastructure, operational excellence system, supply chain management and sales and marketing network.”
About Minor International: Minor International (MINT) is a global company focused on three core businesses: hospitality, restaurants and lifestyle brands distribution. MINT is a hotel owner, operator and investor with a portfolio of 535 hotels under the Anantara, AVANI, Oaks, Tivoli, NH Collection, NH Hotels, nhow, Elewana, Marriott, Four Seasons, St. Regis, Radisson Blu and Minor International brands in 57 countries across Asia Pacific, the Middle East, Africa, the Indian Ocean, Europe, South and North America. MINT is also one of Asia’s largest restaurant companies with over 2,300 outlets system-wide in 26 countries under The Pizza Company, The Coffee Club, Riverside, Benihana, Thai Express, Bonchon, Swensen’s, Sizzler, Dairy Queen and Burger King brands. MINT is one of Thailand’s largest distributors of lifestyle brands and contract manufacturers. Its brands include Anello, Bodum, Bossini, Brooks Brothers, Charles & Keith, Esprit, Etam, Joseph Joseph, OVS, Radley, Scomadi, Zwilling J.A. Henckels and Minor Smart Kids. For more information, please visit www.minor.com.