Table of Contents WHAT IS A THAÏ EXPRESS FRANCHISE?... 3 THE THAÏ EXPRESS STORY... 6 WHY IS THAÏ FOOD SO POPULAR?... 7 WHAT ARE OUR FRANCHISE MODELS?... 8 HOW DO WE HELP FRANCHISEES GROW?...11 HOW DO YOU GENERATE REVENUE?...12 WHERE ARE AVAILABLE GROWTH MARKETS?...13 MEET OUR FRANCHISE OWNERS...15 NEXT STEPS...16 2
What Is A Thaï Express Franchise? Our Thaï food QSR Concept Delivers Popular, Affordable And Delicious Foods To An Eager, Wide-Open Market Thaï Express is an Asian restaurant franchise that provides made-to-order Thaï cuisine from fresh ingredients, cooked in front of customers while they wait. A vibrant environment, simple menu of more than 300 individual dish options, and inviting customer service took Thaï Express from a humble five stores to 285 locations in Canada in just 12 years. Now, we re bringing Thaï Express to the U.S. market. This is a first-to-market QSR restaurant unlike any other, says John Wuycheck, Sr. Vice President of Development for Kahala Brands. Thaï Express is a tested and proven model with a long performance history to back it up, and we are introducing it to a new, untapped market with tremendous growth potential. When customers visit Thaï Express, they ll be amazed by what they find. Think about the last time you ate in an Asian QSR restaurant. Approaching the counter, you saw a steam table filled with cooked meals of varying degrees of quality. Customers have no way of knowing how long before their visit those foods were prepared, let alone what ingredients went into each dish. That s not the case with a Thaï Express franchise. Customers watch as a skilled cook selects fresh ingredients from a cold table and then cooks their dish while they wait, delivering to them a beautiful, flavorful and authentic Thaï dish in as little as a minute and a half. Food theatre meets fast food, and customers know they re getting a quality meal, healthy food, and fresh ingredients. Asian foods account for more than $150 billion in sales around the world each year. The Washington Post points out that most of that more than 90% in fact come from mom-and-pop restaurants. In the U.S., though, roughly half of all Asian food sales come from chains. Thaï food chains exist, but they follow the table model. No other Thaï food chain provides the made-to-order experience of Thaï Express. Our Thaï food restaurant combines the best of several worlds a fast food QSR restaurant, freshcooked authentic dishes, and a pent-up demand for Thaï cuisine. All the while, you benefit from being the first-to-market with a brand that has explosive potential in a high-demand market segment while also enjoying the tried-and-tested concepts, dishes and branding that are usually reserved for legacy QSR brands. 3
Why Thaï Express Is A Great Investment Opportunity Experts from across the QSR industry agree: Asian food is exploding in popularity, including Thaï food. Yet, finding authentic Thaï typically requires customers to visit fine-dining style mom-and-pop restaurants where customers pay more and visit less because it s expensive. Thaï Express customers visit more frequently because our food is wholesome, fresh and affordable. We make eating Thaï an affordable option for all customers, which means customers can eat a more healthful diet for roughly the same cost of a value meal at one of the burger chains, all the while offering sit-down quality food at an affordable price in an approachable yet trendy environment. One of the biggest benefits of owning a Thaï Express franchise is that we ve tested each dish, all of our processes and procedures, and every aspect of business operations to great effect in the Canadian market. From controlling food and labor costs to providing a popular product, Thaï Express franchise is a great opportunity to enter a market with tremendous growth potential. The core of our business lies in the simple complexity of Thaï cuisine. That may sound like a contradiction, but consider: the Thaï Express menu features just eight dish choices, yet through various options ranging from spice level to choice of protein, those eight dishes yield a staggering 300+ individual dishes. The menu is so simple, yet it s incredibly diverse, says Dennis Ng, Thaï Express Brand Vice President for MTY Group in Canada. Customers can come back multiple times a week over the course of an entire year and never once have the same dish. Yet, the menu is not overwhelming with options. There are only those 8 core dishes. Thaï Express Builds A Repeat Clientele Quickly This is precisely what multi-unit owner Sami Haddad sees in the Laval, Quebec, store he owns and operates. He has a host of regulars who know his face, greet him by name and visit his stores more than once a week. One trend he particularly appreciates is that Thaï Express appeals to a wide audience and attracts a younger clientele than other QSR brands. It s a popular brand, Sami says. Young people like our food, know our brand. They re health conscious and they love good food, but they re also aware of the expense of eating out. So when they come to Thaï Express and get fresh, delicious and healthy food, that s a home run. With so many options on the menu, customers are surprised by how approachable Thaï cuisine can be. They see the dish on the menu, they order their dish and customize it to their liking, and then they come back to try different variations of the same. 4
Training And Support You Need To Grow You don t have to hire Thaï cooks to prepare the food at Thaï Express. Our training programs can make a gifted chef out of any candidate, taking the guesswork out of making delicious, consistent Thaï cuisine. You don t have to be a chef, Sami says. They teach you how to make every dish, how to prep your kitchen, and how to work the business systems. If you follow the systems, you will grow. Each franchisee receives advanced training in food preparation and customer service. Then, after completing the training, our expert support staff test them on their knowledge and skill. Before you leave our training kitchen, you ll know how to make each and every dish on our menu, how to plate it in an appealing fashion and how to describe those dishes to the customer. We provide similar training for business systems, where we teach you how to manage your inventory, review your books, and maximize revenues. When challenges arise, we provide additional training and resources to help keep you up to speed and performing at your absolute best. And it s all backed up by some of the most visible and recognizable marketing and branding in Asian cuisine today. We work with the franchisees to make sure they understand the ins and outs of their business before they open, says Tim Le, development director for MTY Group in Canada. Tim oversees the training program for each new Thaï Express franchisee, and her enthusiasm for our brand and the people who make it successful is infectious. With our training and support, anyone can own and operate a thriving Thaï Express. 5
The Thaï Express Story From a humble 5 stores, we became a major Canadian brand in just 12 years. Now, we re going to do it again in America Since joining MTY Group in 2004, the Thaï Express restaurant franchise has become one of the most recognized names in Canadian franchising. If it seems you can t go ten feet without seeing a Thaï Express restaurant franchise, that s pretty close to accurate. In one bustling downtown Montreal shopping district, there are no less than five locations within just a couple minutes walk. The popularity of the Thaï Express brand lies in the way MTY Group revolutionized the product when it purchased the company. Once we opened a couple in the top malls across Canada, people took a liking to it quickly, he says. Customers recognized the changes in the restaurant s aesthetic and more importantly, they took note of the improved product. The design is nice and the details are great, but if the food is great they re going to come back. A Brand That Honors Its Roots While Innovating Into The Future The design of each Thaï Express restaurant franchise location is a labor of devotion to Thaï culture and Asian history. Though each location is unique, with individualized elements to fit the style of the restaurant and the aesthetic of the community in which it s situated, our restaurants are instantly recognizable as authentic, inviting, and uniquely Thaï Express. This brand identity is the result of two guiding principles: be unique and be faithful to Thaïland s roots. We didn t want to do a typical Asian theme where you see bamboos and chopsticks, says Loune Tonvang, director of design and development for Thaï Express Canada. We really wanted to build an identity that shows what Thaï is all about. Applying time-tested principles of Feng Shui, where traditional elements and aesthetics are aligned according to ancient practices, the design team creates a Thaï Express layout and design that is at once unique to the location it occupies and true to our brand s iconic identity. A New Era Begins Hip, fresh designs combine with high-quality marketing to build a QSR restaurant experience customers don t find in other Asian restaurant concepts. Built on our company s four principles, and in no small part thanks to the devotion of an eager and loyal clientele, we grew to more than 285 stores in Canada in a little more than a decade. Now, as Thaï Express is poised to take on the U.S., momentum here is already building. Ten Thaï Express locations are already under development, from Minnesota to Arizona, and our first location will open in the Mall of America in early 2017. Multi-unit franchise owner Eddy Hassan is excited about the prospect of being the first-to-market in the U.S. I m actually opening my own Thaï Express in the U.S. because this is a system that works perfectly, he says. It was tried and tested, and it s something that excelled in the field. It has no real competition, and it s something that people love. That drives revenues year after year. Backed by two of the biggest names in international franchising Kahala Brands and MTY Group, Thaï Express is coming to America. Now is a great time to join what will soon be one of the most popular destinations in Asian QSR franchising. 6
Why Is Thaï Food So Popular? $206 Billion QSR Market, Meet Thaï Express A Thaï Express franchise is the kind of investment that comes along once in a lifetime a first-tomarket QSR restaurant that s affordable to open, easy to operate and that taps into a vast, pent-up demand for a unique product that is healthy and fresh. Asian food is the fastest growing segment of the restaurant market in the world. In fact, a recent story in The Washington Post notes that Asian cuisine, once a niche food, has grown at a rate of 500% since 1999 a rate of growth larger than the next four categories (Middle Eastern, pizza, chicken and Latin) combined. When customers seek out international cuisine, one of the hallmarks they re looking for is an authentic dish that reflects the culture of the region from which it comes. A key component of the Thaï Express model is the Thaï Heart, a model of compassionate thinking, friendly interaction and purpose-driven action that exemplifies Thaï culture as much as it accentuates Thaï cuisine, the region from which it comes. A key component of the Thaï Express model is the Thaï Heart, a model of compassionate thinking, friendly interaction and purpose-driven action that exemplifi es Thaï culture as much as it accentuates Thaï cuisine, the region from which it comes. Thaï Express Is Scalable, Manageable And Fun At the center of the Thaï Express franchise is an easy-to-manage, owner-operator QSR restaurant concept with the business support systems, training and branding franchise owners need to drive revenue and scale their businesses. For those who have no experience with Asian food, they re going to find Thaï Express to be simple, exciting and adventurous, says multi-unit owner Eddy Hassan, who will open the first U.S. Thaï Express in Minneapolis in 2017. The business is very organized. The product is very simple to prepare and manage. Running a Thaï Express requires fewer employees than other similar brands, and that means costs stay lower. 7
Thaï Food Ranks High On The Healthy Scale A recent CNN report notes that Thaï cuisine ranks in the top 10 of healthy diets. Americans are consistently seeking healthy alternatives for dining on-the-go, which makes a Thaï Express franchise an attractive option for QSR investors seeking new growth opportunities. One key area of interest for savvy investors is Thaï food popularity among millennials one of the fastest growing segments of the restaurant market. According to Edelman Digital, some 23% of millennials say they eat Thaï food regularly. Combining a healthy food with a growth market in high demand among a core demographic, Thaï Express is a franchise QSR built for the now and ready to scale for the future. American QSR market driven by the expertise that comes with navigating diverse brands ranging from Cold Stone Creamery to Blimpie. Kahala brands are synonymous with quality, customer service and popularity, says Sr. Vice President of Development John Wuycheck. We have a diverse family of both new and legacy brands, and we re excited to bring Thaï Express to American diners. I believe Thaï Express is going to quickly become a leader in the Asian QSR segment, and we re already on track for an explosive growth of the brand. The Thaï Express franchise debuts in the U.S. in 2017 with the first location in the Mall of America in Minneapolis, Minnesota, and more stores are already set to open across the country. We have 10 stores in development, and numerous other franchise owners are exploring bringing Thaï Express to their markets. A proven QSR with the backing of Kahala s more than 3,000 stores, massive revenues, buying power, and star brands, Thaï Express is an exciting opportunity with a powerful potential to take on the U.S. QSR space. What Are Our Franchise Models? With Thaï Express franchise designs for both mall food courts and in-line restaurants, there s a franchise model for every location An Iconic New Brand Backed By The Top Management Team In American Franchising Whether you re looking to open a popular dine-anddash lunch spot in a busy food court or an inviting restaurant where people are encouraged to sit a spell and enjoy the fellowship with friends, Thaï Express has a franchise model right for you. We offer two franchise models, a food court model and an in-line or endcap model. Kahala Brands is one of the most trusted names in American franchising today. More than 3,000 locations of 18 popular brands produce annual sales of almost $750 million a huge chunk of the 8
Food Court Model Thaï Express took Canada by storm largely through its invasion of food courts in malls across the country. Easy to run with a smaller crew, and with no need to maintain a restaurant dining space, our food court model is an attractive addition to any mall or shopping center where you find Chinese or Japanese cuisine or sushi. In virtually any food court, Thaï Express stands out as a far cry from your run-of-the-mill cafeteria counter with a steam table. We maximize the customer s experience with food theatre, preparing the dishes on the line while customers wait and watch, a stark comparison to the mystery-meat-and-sauce Chinese joints that abound. 9
In-line or Endcap Model In-line, endcap and freestanding Thaï Express models have proven popular in locations near busy shopping centers and in quiet, off-the-beaten-path locations alike. The in-line model is great for the restaurateur who wants to offer customers a dine-in experience away from the bustle of a mall food court. Many of our in-line locations boast a drive-thru, a popular addition that boosts business and increases repeat customer visits. Meanwhile, some of our most popular locations exist along busy pedestrian routes, in the middle of shopping, commerce and tourism. And Thaï Express has a proven track record in locations in shopping centers, on mall endcaps and outparcels, and in free-standing neighborhood eateries, making Thaï Express perfect for essentially any location. 10
How Do We Help Franchisees Grow? Training And Support, Freshly Made Dishes And High-Quality, Visible Marketing And Branding Make A Winning System We spent more than 12 years perfecting the Thaï Express franchise model in Canada. All that work shows in our comprehensive training programs, simplified business operations systems, and high-visibility marketing and branding. We re bringing these winning combinations to the U.S. market, where we re poised to duplicate the explosive growth seen in Canada in the much larger U.S. market. Throughout the process, from decision to grand opening, the Thaï Express management team is there to help you achieve each benchmark and prepare you to grow and scale your business. Here are just a few of the many ways we help franchisees get prepared for their Thaï Express careers. Establish skills and prove yourself with our training and testing program Deciding you want to own a Thaï Express franchise doesn t require you to know how to cook Thaï food beforehand. We ve perfected rigorous culinary training programs and testing to back those systems up. Though Thaï cuisine is easy to prepare, we nevertheless focus a significant portion of the training on getting you ready to make Thaï food, and once you re ready, we then test you to make sure you meet the Thaï Express standards both for business systems and cooking. The exam verifies they ve incorporated the knowledge, and a cooking test verifies their food, says Tim Le, Operations Director for Thaï Express Canada. The result: when you leave training, you re an expert in all aspects of owning and operating a Thaï Express franchise restaurant including how to cook each and every dish on our menu. 11
Franchise Owners Have Confidence In A Tested System With Proven Growth Potential MTY Group s rapid expansion of Thaï Express across Canada shows this brand has a tremendous potential for growth. Franchise owners are a vital part of that growth, and our U.S. operations are no different. We value franchisee input, and we encourage them to provide regular feedback on our franchise system what s working and what could be working better. The first part is respect, says Dennis Ng, brand Vice President for Canada. We have open doors and anything that is said is valid. As long as that is what they ve said and how they feel, they are heard. We want to make the experience the best possible for the clients, for the franchisees, for the home office. We ve invested considerable energy in streamlining operations, so each Thaï Express location can operate on as few employees as possible. An in-line restaurant typically requires 5 or 6 employees per shift, and many of our mall food court locations operate on as few as 2 or 3 employees per shift. Meanwhile, as your business grows, so too can your operation. The Thaï Express business model is ideal for both individual unit and multi-unit ownership. So whether you re wanting an owner-operator single restaurant, or you have designs to become a Thaï cuisine mogul, Thaï Express is a great fit for you. How Do You Generate Revenue? Opening A Thaï Express Franchise Is A Great Way To Open A Scalable Business In A Growth Market The verdict is in: the market for Asian food is exploding. Globally, The Washington Post reports that demand for Asian food has increased more than 500% since 1999. During that same period, American demand has increased more than 135%. Meanwhile, customers are demanding unique and authentic international cuisines. Among the coveted millennial demographic, 23% of respondents to a recent survey indicate they regularly consume Thaï food. Yet, there is no major Thaï food chain in the market. Together, these factors make owning a Thaï Express franchise a great investment for savvy entrepreneurs who are seeking a growth business. Here are just a couple of points to consider. Thaï Express Is A Proven Concept In A Wide Open Market The demand for Thaï food is there, yet getting authentic Thaï cuisine usually means visiting a momand-pop fine dining establishment. Expensive dishes and longer wait times can deter customers. Thaï Express brings this healthy, fresh-cooked food to the masses through our food court and in-line models, where customers can come to experience authentic Thaï foods with far less expense and time than the mom-and-pop restaurants. We ve spent more than 12 years perfecting the business systems and recipes that enable our franchise owners to deliver high-quality, low-cost, authentic Thaï food to customers, made fresh while they wait, in as little as a minute and a half. 12
With high-design brand identity, a modern, hip feel, and a devotion to providing excellent customer service, we re a proven concept that offers you a first-to-market opportunity to join a multi-billion dollar segment of the QSR industry. Food Cost Controls Drive Margins At its heart, Thaï food is simple enough a protein coupled with either a rice or noodle, spices and herbs, and sometimes a sauce, served in a single dish. Because our systems streamline labor a typical Thaï Express freestanding store requires no more than 5 or 6 employees at any given time ingredients themselves become an important component of cost control. Dennis Ng is the Vice President of Thaï Express Canada for MTY Group, the parent company of Kahala Brands. Dennis notes the care and consideration that go into each dish and each ingredient, beginning with the food costs. Food costs are important, Dennis says. Whether it s deciding to purchase pre-sliced chicken and beef or having the meats sliced in the store, or seeking out a source for quality peanuts, MTY Group examines each ingredient down to the penny. Dennis points out, too, that a chief concern for each ingredient is that quality is maintained. And on this, Thaï Express is successful. There s no way anyone can say it s not good, Dennis says. The quality is there, the service is there, and the pricing is there. Customers respond, too. Just look at Canada, where Thaï Express grew from 5 locations in 2004 to more than 285 stores today. Visit any major city in Canada, and you ll see Thaï Express everywhere. Where Are Available Growth Markets? Anywhere you see a Chinese place or sushi bar, there s a spot for a Thaï Express Franchise A Thaï Express franchise is a versatile business opportunity that works anywhere. We offer models for shopping mall food courts, in-line strip centers, and freestanding restaurants, with each location customized to incorporate the ancient traditions of Feng Shui design. This means each location is at once unique to that spot and instantly recognizable as a Thaï Express. Many Thaï Express franchise owners find a blend of location styles works well, and Thaï Express is a great opportunity for an individual seeking to scale a business while growing a brand. The ideal market for a Thaï Express are areas with blended dining experiences, where owners can open freestanding restaurants, shopping center endcap stores and mall food court locations. Thaï Express is the kind of franchise restaurant that works well in virtually any location, says John Wuycheck, Kahala Brands Sr. Vice President of Development. Whether you re interested in opening a popular lunch-and-dinner spot in a busy shopping mall or a destination-restaurant in a hip neighborhood, Thaï Express works because people come for the food, the service and the experience of authentic Thaï cuisine. We say anywhere you see a Chinese joint or a sushi bar, there s a spot for Thaï Express, and we mean that. Even still, Thaï Express works well anywhere you see fast food, family dining or hip, trendy restaurants. 13
An Affordable, Scalable Business Opportunity Ideal for Diverse Markets We believe Thaï Express is the kind of affordable franchise restaurant that customers will flock to for a sit-down meal, and our in-line and freestanding restaurants are designed to foster a sense of community, arranged using time-honored principles of Feng Shui to encourage lingering and with tables arranged in a manner that creates a sense of community. Our franchisees see it every day. Customers visit a Thaï Express with a friend or family member and before they finish their meal, they ve made new friends in the restaurant over the shared experiences of a unique, savory dish. Four Core Principles: 1.) Customer experience 2.) Mutual respect 3.) Thaï Heart 4.) Quality For our most enthusiastic franchise owners, opening a Thaï Express isn t just a business decision. It s also a commitment to the core principles of the Thaï Express experience. That s why, no matter what kind of restaurant you hope to own, there s a Thaï Express franchise model to suit. And because building and opening a Thaï Express is affordable, Thaï Express works in large and small markets alike. Meet Our Franchise Owners 14
Franchise Owners Come From All Walks, Cultures And Age Groups You don t have to have experience cooking or preparing Asian food to run a successful Thaï Express franchise. In fact, our owners come from all segments of the restaurant industry, from QSR super-chains to mom-and-pop Greek restaurants. They know the value of the Thaï Express brand, embrace our core mission, and embody our four core values customer experience, mutual respect, the Thaï heart, and quality. Here s what they have to say about why they love owning a Thaï Express franchise. I was walking by and I saw a huge line I went, I tried it, and I understood why there were all these people. Now, I own 5 Thaï Express locations and will open the first U.S. location in January With the support from the corporate office, our great food and amazing brand and marketing, the potential in America is just enormous, and I wanted to be a part of it. - Eddy Hassan, first U.S. franchise owner We usually have a line during lunchtime, maybe a line of up to 30 or 40 people They know we re going to serve them fast. Customers come again and again, and that helps grow revenues and build the business. - Jacky Chhan, mall food court owner, Montreal, Canada I think the opportunity in the U.S. is huge. I travel there a lot and and get to see the food offerings that are there I ve yet to find a place that offers something that s fresh, that s healthy, that s quick, and that s affordable. Thaï Express hits each of those high notes, and it s going to be huge with American audiences. - Sam Salabi, multi-unit owner in Quebec, Canada 15
Bring The Premier Thaï Food Franchise To Your Community Today Thaï Express Is A Low-Cost Investment With Potential For Growth As We Expand Across The United States Startup costs range from $370,900 to $832,700, depending on the model you choose. Since 2004, we saturated the Canadian market with a business model built for entrepreneurs who are passionate about bringing an authentic and affordable Thaï food experience to their communities. The franchise fee for your first Thaï Express franchise is $30,000, and the franchise fee for multiple units can be discounted if certain conditions and criteria are met. 16