Opportunities for Dusit Thani: Thai Restaurant Expansion in the Philippines

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Market Overview

Filipino Dining Habits

- Local consumers normally perceive restaurants as ideal venues for spending time with family and friends.

- Increasing number of Filipinos rely on social media recommendations

According to Euromonitor 2015, Filipinos have the habit of researching a restaurant before actually eating there. They rely on reviews they find in the internet also like to share their experience in a restaurant via social media.

- Middle class and young professionals are increasingly dining out and willing to pay extra for quality food.

Young professionals, aged 22-30, comprised 20% of the total population. They are increasingly dining out and willing to pay extra for quality food in restaurants that charge 100%-500% more than fast-food restaurants whether at casual dining establishments or high-end restaurants, With new restaurants opening frequently, young professionals are easily lured to dine out during their lunch breaks or after-work hours for social activity. They also tend to chronicle what they eat by sharing it on social media, particularly through Instagram.

Market and Competitor Analysis

Due to the fact that Filipinos rely on social media, the analysis will be based on collecting data from review sites: Tripadvisor and Zomato.

Restaurant Segmentation in Manila

- Casual dining in midscale segment

Menu offering: Focus on a particular ethnicity or a specific food type (seafood, barbecue, noodle)

Price range: 350-700 Peso/person

Popular areas: Quezon City, Makati city and manila

Establishment: Standalone outlets or in shopping malls (SM city, SM Aura Premier, Ayala Center, Robinson)

Remark: Tightening competition with no key differentiator

2. Casual dining in upscale segment

Menu offering: focus on a particular ethnicity or a specific food type

Price range: 700-P1000 Peso/person

Popular areas: In high-end malls/areas (e.g. Greenbelts, Mall of Asian complex (MOA), Bonifacio Global city, SM Megamall, SM Aura Premier, Ayala Center)

Remark: Differentiate with Innovative menu and food quality

3. Luxury fine dining segment

Menu offering: Buffet serving with wide selection of International dishes (European, Filipino, Japanese, Chinese) or focus on a particular ethnicity.

The price range: 1250-3000 Peso/person

Popular areas: Alongside the Manila bay, Makati City and Taguig City.

Establishment: Mostly are hotel outlets

Remark: Location limited in urban and prime areas with strong established hotel players such as Marriot, Sofitel, other international and domestic hotel operators.

Overview - Competitor

Competitor Criteria: Full-service Thai restaurant in Metro Manila with an average cost per head more than 700 peso.

Summary

- High competition in midscale segment – about 50 outlets in Manila listed on Tridadvisor, the majority are mall outlets offering Thai fusion. No leading competitor in this segment.

- Low competition in upscale segment -- Only 3 players in this segment, establishment types could be found as standalone outlets in CBD areas or located high-end shopping malls.

- Chain player-- Only 2 chain brands in the upscale segment, no leading player with high quality & service in the market.

- Independent player-- People's Palace is the most popular brand with highest in overall rating and number of reviews.

- According to reviews on the sites, most common citations for low ranked restaurants are:

- Unauthentic in taste and ingredients

- Inconsistent in quality and service

- Overpriced for quality and service

Key competitors in upscale segment

*price - average price on Zomato.com

Name

Chain

Location

Positioning & Pricing

Differentiator & Selling point

Customer rating

Benjarong

No

Dusit Thani Manila, Makati

Fine dining

~1250P/person

- Serving Royal Authentic Thai dishes

- Thai chefs

Zomato: 4.6/5

Tripadvisor: 4/5

*low ratings on value factor

People's Palace

No

Greenbelts, 3, Areya center, Makati

Casual dining ~750P/person

-Authentic Thai dishes

- Nice atmosphere with outdoor seating, lounge area

- Good for special occasion, late night dinner, business meeting

- Vegetarian Friendly menu

Zomato: 4.4/5

Tripadvisor: 4.5/5

*Low ratings on service factor

Just Thai

Yes