CPF (India), a subsidiary of Thailand’s Charoen Pokphand Foods, a multinational conglomerate, has embarked on a consolidation drive to cut logistics cost and grow business volume, according to a senior official.
Retail outletsTalking to The Hindu , Rijoy Prabhakar, CPF India Assistant Vice President, said: “Earlier, we decided to open 150 retail outlets by end-2016. But, now it has been scaled down to 125 outlets. Partially because we are not growing as we thought we would be in Quick Service Restaurant (QSR) business. It is a big challenge in terms of logistics to reaching Tier-II and Tier-III cities.” It would cost approximately Rs.10 lakh to set up an outlet. In some outlets, the investment will be less. The investments will be made by the franchisees.
“We see high potential for us in Kerala, Bengaluru and Chennai. We are on a consolidation drive. We think Bengaluru will need at least another 30 to 40 retails outlets and Chennai another 40-50 outlets. However, we have not closed down any outlet,” he said.
In India, CPF operates 353 QSRs under the Five Star Chicken brand. A majority of these restaurants are in five southern states and others in Pune, Navi Mumbai and Goa.
