Kaiten Sushi (Thailand) Company Limited: Battling For Growth

By Chan Teng Heng and D. G. Allampalli

Abstract

In 2000, Kaiten Sushi (Thailand) Company Limited (KST) opened its first franchised sushi restaurant in Bangkok. The company opened three more outlets in the next four years so as to enjoy economies of scale. While the outlets initially attracted large crowds, customer arrivals and sales declined with time. Price discounts, loyalty programmes, new menu items and joint promotions with shopping mall were some of the measures that were introduced to sustain customer arrivals, albeit with limited success. In the first 10 months of 2004, the chain's daily sales declined from a range of 10 to 47 percent and its operations suffered losses. BL Van, director of KST had to decide how he could boost customer arrivals and turn around the chain's operations.

Issues: Marketing and Sales Management, Financing Growth and Business Strategy

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