An empirical analysis of franchise system in Thailand focused on fast food business : case study of the Pizza Public Co., LTD. success franchisee in Thailand

Abstract

Nowadays franchise has an important role to Thais lifestyle both goods and services business l.e. Mobile phone’s service center, beauty center, dry cleaner, restaurant, pharmacy, etc. Although franchise has been introduced in Thailand for several years, people might confuse about the concept of franchise, advantage and disadvantage that franchisee might receive from franchise system. This study intends to analyze the advantage and disadvantage of franchise from both thefranchisor and franchisee’s viewpoints. The study further examines the key of success franchisee in Thailand. Case study of The Pizza Public Co., Ltd. A qualitative approach is taken towards the method of the study and analysis. Data comes from both primary and secondary sources. Primary data from interviews with the consumer and franchisee concentrated in Bangkok Metropolitan area. The secondary data is drawn from various publications of government offices, business magazines and newspapers. This study discovered that most of well-known franchise operations in Thailand are foreign franchises l.e. the United States of America, Japan The major sectors of franchise are fast food and retailing business. This study also found that most of the franchisees take a franchise because of brand name, know-how and economies of scale. In examining case study of The Pizza Public Co., Ltd. franchisee of Pizza Hut Inc., Group Company of Tricon International Restaurant Inc. The Pizza has effective management performance, systematically operation and continuous research and development which intended to reach 100% customer's satisfaction. The aforesaid are the crucial factors leading to success in franchise business. The Pizza also established Minor Cheese Co., Ltd. to produce and supply raw material to their group company. Having their own manufacturing facilities for cheese and ice cream has become a very strong competitive advantage of the company. From this study found that the success of franchise business is consisted of cooperate and intention of franchisor and franchisee.