Baskin Robbins Franchise Closes its Last 4 Locations in Thailand

Baskin Robbins Franchise Closes its Last 4 Locations in Thailand

Baskin Robbins has ceased all operations in Thailand after the ice cream retailer was decreased from ten to 4 areas by the top of 2022. Its stake in Mud & Hound has dropped from 3% to 1%.

Baskin Robbins, the US ice cream chain, will stop operations in Thailand on March 13, 2023, closing all 4 remaining areas. The Baskin Robbins brand is not seen on the web site of Mud & Hound, the model’s Thai proprietor.

In keeping with the model’s official Fb web page, Baskin Robbins Thailand, has a ‘completely closed’ standing.

The ice cream brand just isn’t displayed on the Mud & Hound web site. In Thailand, the corporate owns 100% of the franchise rights.

Baskin-Robbins isn’t the one meals franchise to fail in Thailand; in March 2022, Carl’s Jr. closed all six of its areas in Bangkok and Pattaya. The R&R Restaurant Group, which owned the franchise rights to run Carl’s Jr. eating places in Thailand, introduced that it might not function.


The Restaurant franchise group acknowledged that it was compelled to supply key substances solely from the US, citing restrictions imposed by CKE Eating places Holdings, the guardian firm of Carl’s Jr. and Hardee’s.

The corporate claims that they tried to remain afloat till 2022, however then determined to shut as a result of they may not afford the working prices.

Along with the excessive price of imported substances, there was a decline in international vacationers, a key marketplace for the burger chain.

The burger chain opened its first Thai location in Central Competition Pattaya Seaside in 2012.

As well as, as a result of financial penalties of Covid-19, American fast-food franchise A&W closed all of its branches in Thailand in 2022.

International Client Plc, the proprietor of the Thai franchise A&W shops in Thailand, misplaced greater than 70 million baht. A number of lockdowns and altering buyer behaviour are being blamed for the losses, with nearly all of branches situated in buying malls that have been closed for a lot of the pandemic.


A&W has roughly 1,000 franchisee worldwide and opened its first Thai location in 1983

Marugame Seimen, a Japanese udon (noodle) store franchise chain that first opened in Thailand in 2000, has additionally introduced the indefinite closure of its three Thai areas in March 2022.

The departure of those multinational companies reveals the deeper structural points which were festering in Thailand’s meals service business over the past decade. Dine-in restaurant high traces have been grappling with wafer-thin revenues amid rising prices as competitors heats up. Moreover, Thai youths are much less loyal to their predecessors’ manufacturers and are more and more gravitating towards newfound eateries in quest of novel consumption experiences.

Youths who’re pressed for time, cash, or comfort are selecting cheaper prepared meals and snacks from comfort shops over established dine-in eating places.

Whereas on-line meals ordering elevated through the pandemic, the excessive commissions charged by on-line meals aggregators like Uber Eats, Seize, Gojek, Meals Panda, LineMan, Robinhood, and TrueFood are additional eroding restaurant high traces.

GlobalData’s 2022 survey captures the dilemma afflicting the Thai hospitality business, with a far better proportion of respondents consuming meals at the very least as soon as every week from meals supply companies and stores than from full service eating places or fast service eating places (QSRs). Meals supply companies seem to dominate meal occasions, with a share of practically 4 in 5 (79%).

When the worldwide well being disaster hit the hospitality business, most meals service operators have been left with little money readily available as a result of low income inflows.

On the plus facet, the QSR channel recovered rapidly from the pandemic-induced lull in 2021, helped by elevated vaccination protection and the relief of pandemic restrictions on eateries.

Nevertheless, the QSR channel’s post-COVID-19 restoration will probably be hampered by underlying challenges, significantly low revenue margins. In consequence, GlobalData expects Thai QSR revenues to stay properly beneath pre-pandemic ranges for the foreseeable future.

Lastly, it’s as much as HoReCa operators to achieve an settlement on ground costs for meals and companies so as to guarantee long-term enterprise sustainability and resilience within the face of shocks just like the pandemic.

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