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Thai franchises look to get foothold

Chhut Bunthoeun / Khmer Times Share:
An Inthanin Coffee outlet in Bangkok. The Thai cafe chain will soon open its first branch in Cambodia. Supplied

The president of RCG Retail Cambodia has said franchises from Thailand are looking to expand their businesses in the Kingdom to successes brought by the model.

Jiranun Wongmongkol, president of RCG Retail Cambodia, last week told Khmer Times that there are currently ten Thai franchises operating in the Kingdom.

Ms Wongmongkol, who previously served as a Counselor Minister, said some franchise brands have gained popularity among young consumers.

“Some Thai food, beverage and apparel franchises are successful in Cambodia because those brands are popular among young Cambodians,” she said.

A franchise is a business model in which investors pay royalties to use a company’s identity, trademark and way of operation.

RCG Retail Cambodia signed an agreement with Thailand’s Bangchak Retail Company to operate Inthanin Coffee shops in the Kingdom.

Their first store opened in Phnom Penh last year.

According to local media, the company is planning to open about 100 outlets by 2022.

RCG Retail Cambodia previously said a license to operate an Inthanin Coffee Shop will cost investors about $200,000 with about 20 staffers working in each outlet.

Op Rady, director of the intellectual property rights department at the Commerce Ministry, told Khmer Times yesterday that most franchises operate in the food and beverage sector, but did not disclose how many foreign franchises have been recorded by the ministry.

Mr Rady said franchises should register their business model at the ministry so it can help intervene if there is an infringement.

Ms Wongmongkol previously echoed Mr Rady’s comment, noting that a local coffee shop called “Amazing” is similar to Thailand’s “Amazon”.

A law to regulate franchises called the Contract Law is now being reviewed by ministries.

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