Central kitchens suffer from inundations

A number of leading restaurant chains and beverage firms have no choice but to shut down some outlets temporarily, as their central kitchens have been deluged by the severe flooding.

The Navanakorn Industrial Estate, a cooking hub with 12 food factories including for popular Japanese chains Thai Hachiban Co and MK Restaurant Co, has become the latest victim of Thailand’s worst floods in 50 years.

Thai Hachiban Co, operator of the Hachiban Ramen chain, said up to 80 outlets have already been closed nationwide since last week.

A company executive said operations at the central kitchen, which supplies all its branches, has been disrupted.

“Now we’re down to only six ramen shops in the South, which is still dry. But these have only enough food to last until this Friday,” said the source.

Thai Hachiban will assess losses after the floodwaters recede.

Paisarn Aowsathaporn, the Oishi Group’s executive vice-president for the food, said his company last week moved its central kitchen from Pathum Thani-based Navanakorn to the Amata Industrial Estate in Chon Buri.

It also doubled its stock inventory to a two-week supply in preparation for a worst-case scenario, said Mr Paisarn.

He said Oishi is lucky that its suppliers are all in Bangkok and still safe from flooding. Some vegetables may disappear from the menu, but they can be replaced with others.

However, the Japanese buffet restaurant chain has suffered a 10-15% drop in visitors at its Future Park Rangsit branch due to growing flood concerns in that area.

Mr Prasarn said lost revenue from that branch could be offset by increased sales at other outlets.

He expects full-year sales of 4 billion baht, up by 25% from last year.

“Last year’s political violence taught us to take risk management for fires, flooding and terrorism seriously,” said Mr Paisarn.

For the present crisis, the company has rented warehouse space in Chon Buri, Samut Prakan and Chiang Mai provinces in case of transport difficulties.

MK Restaurant Co, a leading suki restaurant chain, was forced close its central kitchen in the Navanakorn Industrial Estate and move 220 workers to another factory on Bang Na-Trat Road.

Metha Junhasiri, a senior vice-president, said MK has not yet been affected by the disruption, as the Bang Na-Trat factory can supply 300 outlets.

Yum Restaurants (Thailand) Co, the local operator of KFC and Pizza Hut, is suffering a shortage of some food ingredients, as many suppliers are in deluged Ayutthaya industrial estates.

Menu choices have been scaled back to 60-70% of normal.

Main menu items such as fried chicken and french fries remain available, but some Thai-food selections have had to be suspended.

Malee Sampran Plc, the maker of Malee fruit juices, has informed the Fuji Restaurant Group of a temporary halt in the production of Fujicha green tea for the restaurant branches due to flooding at its factory in Nakhon Pathom’s Sam Phran district.