The American who built a Thai business empire

U.S.-born (but now Thai) businessman William E. Heinecke, among the richest in Thailand, explains his business strategy.

Photo above of businessman William E. Heinecke: ‘‘Our executives have to be able to grow, recruit and keep great talent." 

Click button to listen to Minor Hospitality Group to download

EXECUTIVE Q&A

Mint ready wherever opportunity arises

27/04/2012
ShareInvestor, Financial Internet Media & Technology Company

Minor International Plc (MINT), founded in 1978, is one of the largest hospitality and leisure companies in the Asia-Pacific region. With more than 70 hotels and resorts, 1,200 restaurants and 200 retail trading outlets, MINT meets the growing needs of consumers in Thailand and in 21 markets from Africa to Australia. William E. Heinecke, chairman and CEO, discusses the company's strategy and outlook.

What is MINT's business model?

MINT is a global leisure company focusing on food and hospitality. Within Thailand we have a long history in both businesses dating back to the early 1970s where we were early pioneers in the hospitality business, starting in Pattaya and moving in Bangkok.

MINT has been growing aggressively outside of Thailand in both the food and hospitality segments. Why is this? 

This is not because we have lost faith in Thailand, but because given the funds we have for investments, there are more attractive opportunities internationally. We started expanding internationally by acquiring The Coffee Club in Australia and Thai Express in Singapore. We also tend to bring our overseas acquisitions back into Thailand and other markets. For the hospitality business we have also gone into Australia by acquiring Oaks Hotels & Resorts last year and will be looking to develop a hotel in Gladstone which has the largest foreign investment of any city in Australia. Today about 30% of our hotel revenue is generated from Australia which takes MINT away from the realms of local political concerns, terrorism and flooding, which unfortunately have seriously affected Thai tourism

How is MINT's food business progressing?

We are the largest in the food business in Thailand with everything from pizza to ice-cream, and we cover almost every category in the fast-dining segment. We have very strong mass-market brands and what especially sets our model apart is that we have very strong intellectual property and good people. For the food business in China we are making headway and refuse to give up; today there's an S&P there and a Thai Xpress in Beijing in addition to our Pizza Company and Sizzler. All of these are profitable at a store level and as we get more momentum and brands there, we feel it will become extremely profitable, We are committed to China because we want to be a global player.

MINT has developed its own hospitality brands Anatara and Avani. How are they progressing? 

When we first took the step away from managing other people's brands or letting people manage our properties, we set a very clear image of what Anatara stands for. It's indigenous and is meant to give you the experience of the country you are in, which is different from most hotels globally. We focus a lot on the software, our people, and in any hotel you visit, it's the software that makes the biggest difference. For Anatara the reaction is fantastic. It's in its 11th year now with 11 locations and we will have six or seven more this year. Avani was recently launched with two hotels in Sri Lanka and we would like to open one in Thailand soon... [Read rest of article here].

The Executive Q&A Series is presented by ShareInvestor, Asia's leading financial internet media and technology company and the largest investor relations network in the region, with more than 400 listed clients. This interview was conducted by Pon Van Compernolle, editor of www.thaicapitalist.com. For more information, email [email protected] or [email protected] or visit www.thailistedcompany.com

(Source: Bangkok Post, EXECUTIVE Q&A, Mint ready wherever opportunity arises, 27/04/2012, ShareInvestor, Financial Internet Media & Technology Company, link) 

Hospitality Industry Vocabulary

hospitality industry - the hotel and restaurant industry (See Wikipedia)
hospitality - 1. food, drink and entertainment given to customers by a company or organization;; 2. friendly and generous behavior towards visitors and guests

William E. Heinecke - U.S.-born business man who lived in Thailand as a child and started his first business there before he turned 18, a business that now runs more than 1,000 restaurants, upscale hotels and resorts, has recently diversified by investing in businesses in Australia (See Wikipedia and Forbes article)

Minor International - the hospitality company that William E. Heinecke founded that now operates "over 1,000 restaurants and 30 hotels in the Asia-Pacific and Middle East regions and Africa. Based in Bangkok, Thailand, it operates hotels under the Anantara, Four Seasons, Marriott, Elewana and Avani brands, owns The Pizza Company and Thai Express restaurant franchises, and operates restaurants under the Swensen's, Sizzler, Dairy Queen, Burger King and The Coffee Club brands in Thailand and other countries" (See Wikipedia)

Anantara - Anantara Hotels, Resorts & Spas, a luxury resort and spa operator based in Bangkok, Thailand, with a  portfolio of 14 resorts operating across Asia Pacific and the Middle East, with its spa brand expanded into Africa, part of Minor International (See Wikipedia)

executives - a high level manager in a company (making plans and ensuring they executed successfully) ผู้บริหาร
recruit - to get new people to work in a company or join an organisation จ้างงาน จัดหาเจ้าหน้าที่หรือบุคคลากร รับคนใหม่, จ้างคนใหม่
talent - a natural ability to be good at something, especially without being taught ความสามารถพิเศษ

Heinecke: ‘‘Our executives have to be able to grow, recruit and keep great talent

Q&A - Question and Answer, when people ask an expert (or person presenting on a topic) about things they want to know about
executive Q&A

EXECUTIVE Q&A

opportunity - a situation when it is possible to do something that you want to do (See glossary)
opportunity arises

Mint ready wherever opportunity arises

retail - to sell directly to the public for their own use ขายปลีก
outlets - stores, places to sell products ร้านค้า
consumers - people who buy things (individuals and families)
strategy - a plan to achieve a goal over a longer period of time (longer than a "tactic")
outlook - how good or bad things it seems things will be in the future ภาพรวม อนาคต what people think will happen in the future อนาคตที่คาดไว้

Minor International Plc (MINT), founded in 1978, is one of the largest hospitality and leisure companies in the Asia-Pacific region. With more than 70 hotels and resorts, 1,200 restaurants and 200 retail trading outlets, MINT meets the growing needs of consumers in Thailand and in 21 markets from Africa to Australia. William E. Heinecke, chairman and CEO, discusses the company's strategy and outlook.

global - throughout the world ทั่วโลก
global leisure company
pioneers - the first people or company to do something
pioneers in the hospitality business

MINT is a global leisure company focusing on food and hospitality. Within Thailand we have a long history in both businesses dating back to the early 1970s where we were early pioneers in the hospitality business, starting in Pattaya and moving in Bangkok.

aggressively - done with great energy and intensity
segment - Same as "market segment" (a separate part of something  ตอน ส่วนต่างๆของสังคม)
market segment - a group of possible customers who are similar in income, age, habits, etc (See Wikipedia)
food and hospitality segments 
fast-dining segment

MINT has been growing aggressively outside of Thailand in both the food and hospitality segments.

funds - money needed or available to spend on something เงินทุน
attractive - worth having or doing น่าสนใจ
opportunities - a situation where it is possible to do something that you want to do
attractive opportunities
acquisitions - companies bought by a company
acquire - when a company buys another company
overseas acquisitions - foreign companies bought by a company
tend - to be likely to behave in a particular way or have a particular characteristic มักจะ
tend to bring our overseas acquisitions back into Thailand
investment - taking your money and putting it into projects to make a profit or earn interest (buying stock shares, bonds, real estate)
foreign investment - investments made in other countries
revenue - income from taxes or business activities รายได้
generated - created
revenue generated - money coming into the business as the result of some business activity
local - in this country (here: Thailand)
concerns - worries ความกังวล
local political concerns - political events in a country that people and businesses worry about
terrorism - the use of violence to achieve political aims การใช้ความรุนแรงเพื่อข้อเรียกร้องทางการเมือง

This is not because we have lost faith in Thailand, but because given the funds we have for investments, there are more attractive opportunities internationally. We started expanding internationally by acquiring The Coffee Club in Australia and Thai Express in Singapore. We also tend to bring our overseas acquisitions back into Thailand and other markets. For the hospitality business we have also gone into Australia by acquiring Oaks Hotels & Resorts last year and will be looking to develop a hotel in Gladstone which has the largest foreign investment of any city in Australia. Today about 30% of our hotel revenue is generated from Australia which takes MINT away from the realms of local political concerns, terrorism and flooding, which unfortunately have seriously affected Thai tourism.

progressing - making progress, moving forward, advancing, getting better all the time

How is MINT's food business progressing?

category - a group of people or things that have similar qualities หมวดหมู่ ประเภท
mass - large numbers จำนวนมหาศาล
brands - products with well-established names that people remember, that create a certain image and expectations about the product
mass market brands - goods with a brand that many people buy (very popular, many customers)
intellectual property (IP) - (See Wikipedia)
refuse - will not do something; say you will not do something
give up - stop doing some project or activity (before achieving your goals or achieving success) 
refuse to give up - will not give up
committed - loyal and willing to give your time and energy to something that you believe in

We are the largest in the food business in Thailand with everything from pizza to ice-cream, and we cover almost every category in the fast-dining segment. We have very strong mass-market brands and what especially sets our model apart is that we have very strong intellectual property and good people. For the food business in China we are making headway and refuse to give up; today there's an S&P there and a Thai Xpress in Beijing in addition to our Pizza Company and Sizzler. All of these are profitable at a store level and as we get more momentum and brands there, we feel it will become extremely profitable, We are committed to China because we want to be a global player.

clear - easy to understand
image - an opinion that people have about someone or something;  the picture of something that people have in their mind, what people think about something ภาพลักษณ์
clear image - an easy to understand picture or idea
stand for - means
set a very clear image of what Anatara stands for
indigenous - naturally existing in a place or country rather than arriving from another place เกี่ยวกับชนพื้นเมือง
globally - throughout the world ทั่วโลก
focus - the main thing it is concerned with ให้ความสำคัญ
reaction - the way something responds as a result of something that happens ปฏิกิริยาตอบโต้
fantastic - very unusual, strange or unexpected; extremely good เยี่ยมยอด, วิเศษ
launched - started เริ่มต้นดำเนินการ

MINT has developed its own hospitality brands Anatara and Avani. How are they progressing?  When we first took the step away from managing other people's brands or letting people manage our properties, we set a very clear image of what Anatara stands for. It's indigenous and is meant to give you the experience of the country you are in, which is different from most hotels globally. We focus a lot on the software, our people, and in any hotel you visit, it's the software that makes the biggest difference. For Anatara the reaction is fantastic. It's in its 11th year now with 11 locations and we will have six or seven more this year. Avani was recently launched with two hotels in Sri Lanka and we would like to open one in Thailand soon...