Chopstix mulls drive-thru concept as it solidifies hold in UK's motorways

It recently acquired Chozen Noodles which has a strong presence in the MSA.

Asian quick-service restaurant brand Chopstix is aiming not just to become the largest Asian QSR operator in the UK but is aiming to bolster its presence in UK’s motorways and other pit stops along the road for drivers.

The group has further solidified this agenda with its recent acquisition of the Asian fast-food chain Chozen Noodles which already has a strong presence in this area. Now, the group is mulling a drive-thru concept for its stores.

In an exclusive interview with QSR Media, Jon Lake, Managing Director of Chopstix Group explained the significance of the acquisition, how Chozen will be incorporated across Chopstix’s business model, and their future plans.

QSR Media: How will the acquisition of Chozen Noodle affect Chopstix Group's position in the UK market?

Jon: The Chozen acquisition brings the group’s total number of Asian QSR sites up to 127, with 90 venues operating as the Chopstix brand, 27 as Chozen, and 10 as Yangtze. This gives us an incredibly strong footing in the UK market and consolidates our position as the largest Asian QSR operator in the UK. 

The Chozen sites hold particular strategic significance to us, as we’re conscious of how well our offer performs in Motorway Service Areas (MSA). The acquisition of these Chozen sites takes the group’s presence at MSAs to 53 sites. 

Will there be any changes to the Chozen Noodle brand after the acquisition?

All sites will continue to trade as Chozen for the foreseeable future and we will work with our franchise partners to determine a longer-term plan for each location. We will of course also be working with each franchisee in the shorter term to assess operations at each site, to ensure they are as successful as possible. 

How does the Chopstix Group plan to integrate the 27 Chozen Noodle sites into their existing business model?

It’s business as usual at the Chozen sites at the moment. 

Can you elaborate on the Chopstix Group's expansion plans, including their goals for reaching 500 sites?

The group has grown steadily over the last two decades, and 2022 was our busiest year ever for openings, with the launch of 26 new restaurants, across the UK. We have a very strong pipeline of Chopstix openings through a mix of equity stores and franchise agreements and expect to be opening 30 new Chopstix locations this year, and for expansion to continue from there, taking us to around 200 total sites within the next 18 months. 

We have undergone extensive market mapping to identify opportunities for the brand across the UK, and with our best-in-class operations, exceptional ROI on new sites and highly flexible model we believe there is scope to hit 500 sites in the future.

How does the Chopstix Group plan to continue expanding and innovating in the QSR industry?

Our expansion is driven by our best-in-class processes which make the business so well-suited to franchising, and our flexible model, which means we can operate in forecourts and food courts, town centres and shopping centres, holiday parks and retail parks, and we’re continuing to evolve, with airports next on our list. We’re also considering drive-thrus and retail formats in the future. This flexibility really gives us the ability to continue along our accelerated growth trajectory. 

Tech is also an area we’re really focused on. We launched our app in June 2022 and since then it’s been downloaded over 150,000 times. It’s had such a positive impact on the business, the average spend-per-head of app users is £1 more than non-app users.

The app links with our EPOS system, so it allows us to know who’s coming in, when they’re coming in, what they’re purchasing, and what their dwell time is, which all feeds into our CRM system. This customer matrix allows us to discuss things with customers in a two-way manner.

Can you discuss any challenges the Chopstix Group has faced in its growth and expansion efforts?

Our biggest challenge has been in simplifying our processes and operations to where they are now, which means we can grow at scale, particularly through franchising.  We really believe that our processes are best-in-class, but it wasn’t an easy journey to get here. 

As a business that, for most of its existence, had a very small head office, centred on its two founders Sam Elia and Menashe Sadik, much of the knowledge was in Sam and Menashe’s heads. Working with its first franchise partner, MSA operator Applegreens, meant they had to “salami slice” this knowledge so other people, who knew nothing about the brand, could deliver the Chopstix offer effectively. Reaching this point was arguably the biggest hurdle the company needed to get over to expand successfully. 

The number one priority for a business wanting to grow through franchising is operational simplicity. That’s what ensures consistency of the product, great margins and excellent ROI for the franchisee. 

Where do you expect Chopstix to be in the next five years?

There is real momentum behind the Chopstix brand and the group as a whole. My expectation for the next 5 years is that Chopstix will become a household name in this country. We also truly believe we have a model that will translate to an international market. We are already having conversations with potential partners who we hope will help us enter new markets.