Bonus Suki, a subsidiary of the MK Restaurant Group, will be opening their first branch on Wednesday, July 16, in Saraburi province, in order to challenge sukiyaki chain Suki Teenoi.
According to a Bangkok Post article, the hot pot restaurant business is booming as many brands want to gain market shares in the lower income group. “MK faces competition from up-and-coming players, especially Suki Teenoi, which competes through cheaper prices and opening hours of noon to 5AM, catering to people working odd hours, such as night shift employees”, said the report.
Most of MK’s branches operate during mall hours, which might have factored the drop in sales earnings compared to the previous year’s report.
Pi Securities has attributed the drop party to rising competition in the sector.
Bonus Suki is set to follow the same strategy by opening from 10AM to 5AM, with prices set below 300 baht.
The decision to open Bonus Suki in Saraburi was to test the water before expanding to other locations, said some analysts.
MK shares reached highs after the news of Bonus Suki’s entry to the market with the 2.3 baht gain, or 13% at the end of the morning trade at the Stock Exchange of Thailand.