Chaophraya owners cook up turnover increase to £32m

Leeds-based Thai Leisure Group, owners of the Chaophraya restaurant brand, has grown revenues on its way to its £50m target, but aborted restaurant costs have seen it dip into the red.

The company, which also operates brands Chao Baby, Thalkhun and Yee Rah, saw revenues increase to £32m for the year to July 2016, well on its way to its three-year, £50m target.

The restaurant group saw a loss before tax of £859,958 for the year, compared to £1.3m in profits the year before, due to a major investment in expansion and restructuring the business.

Three “aborted restaurants” cost the business £413,128 in legal and planning fees, and have been written off. A property lease had been signed off on one of them, and early termination charges also hit the company.

Despite this, five sites under the “key growth-driving brand” Thalkhun were opened during the year, and a further three following year end, including two of the premium Chaophraya branded restaurants. Total site numbers have now reached 21, with restaurants from Aberdeen to Oxford, well on its way to its target of 28 sites in three years.

The growth has been partially fuelled by additions to the management team, headed by Ian Leigh and Christian Hall. During the year they established a dedicated head office, and increased staff numbers to 747 as well as restructuring and reorganising the business.

Martin Stead and his wife Kim Kaewkraikhot, who founded the business in 2004, remain with the business to spearhead menu and branding.