In the midst of uncertainty, many businesses are fighting for survival amid pandemic, especially the hotel industry, which is among the hardest hit. To recover from the crisis, hotel entrepreneurs need to find new ways to bring in revenue as only one core business isn’t enough, and the food and beverage business is one of the answers.
Central Plaza Hotel Public Company Limited (CENTEL) has recently invested in Brown Dessert Co., Ltd., which operates the dessert cafe “Brown Café”, through its subsidiary Central Restaurants Group Co., Ltd. (CRG). The total investment represents 51% of total shares with the total investment of 65-70 million baht.
In late 2019, CENTEL invested 137 million baht in Green Food Factory Co., Ltd., which operates Thai Restaurants named “Salad Factory”, representing 51% of total shares. At present time, there are 6 outlets in operations.
As of lately, CENTEL has been continuously boosting its food portfolio by exercising mergers and acquisitions (M&A) in order to strengthen the business foundation amid intense competition.
Investors believe that even though Brown Café is a small business, the café has growth potential as milk tea is still popular in Thailand.
Brown Café is a dessert café found in 2017, the first branch is located in Chiang Mai. Meanwhile Brown Dessert Co., Ltd., was incorporated on February 19, 2020. At present time, there are 11 branches, but 1 branch is operated under franchise. Recently, the company has signed a management license agreement in Malaysia.
This transaction is expected to further enhance CENTEL business apart from hotel business. Moreover, CENTEL will have its own dessert band and café.
By the way, It is worth keeping in mind which company will be CENTEL’s next target…