Given the many challenges faced by Thai small and medium-sized enterprises (SMEs), business adaptation is key to survival.
De Forest Group Co, a halal food business operating in Thailand's three southernmost border provinces, is a remarkable example of not only adaptation, but also elevating local culinary traditions into a thriving SME.
From Medicine to Food
Muhammadfahmee Talek, chief executive of De Forest Group, recently shared his journey to success at the "Voice of SMEs: Success Stories of Innovation" seminar hosted by the World Bank.
Born in Narathiwat, raised in Yala and now residing in Pattani, Mr Muhammadfahmee has deep roots in these provinces.
He holds both a medical degree and a PhD in epidemiology from Prince of Songkla University, where he currently serves as a lecturer in the nursing faculty on the Pattani campus. His research focuses on poverty, a subject he has studied extensively.
"After years of studying poverty, I questioned whether I truly understood practical solutions. I was still struggling financially," said Mr Muhammadfahmee.
"That's when I decided to start a business to supplement my income."
Growing up he had a deep passion for local cuisine, so he naturally gravitated towards the restaurant business. His commitment to preserving and celebrating traditional flavours drove his zeal.
However, Mr Muhammadfahmee soon realised local dishes were often undervalued and sold at low prices.
For example, nasi dagang, a dish made from three types of rice, with fish curry and a boiled egg, is sold by vendors for 20-25 baht a pack. Despite its popularity, the dish requires a significant amount of time and effort to prepare, with vendors getting up as early as 3-4am to begin the process.
However, the profit from each pack is limited, ranging from 3-5 baht.
"For me, the quality and value of nasi dagang far exceed the profit it generates. This realisation inspired me to enhance and add value to local foods," he said.
"In 2019, I entered the local halal restaurant business by opening my first branch in Pattani named Roti De Forest."
Flourishing Amid Challenges
The early stages of establishing the business were far from easy. A major hurdle was developing a business in a poverty-stricken area with local consumers who have a low level of purchasing power.
To overcome this challenge, the company had to rethink its approach by developing innovative products, enhancing the quality of service, and building a strong brand.
Expanding its reach to a broader consumer base, including both local and foreign tourists with a higher level of purchasing power, became a key strategy, said Mr Muhammadfahmee. To achieve this, comprehensive business development was essential, with a focus on human resources and technology, he said.
To develop its workforce, the company invests in local talent through training programmes and clear career pathways.
The level of education in the three southern border provinces often falls below the national standard, so the company strives to support and enhance employee development, he said.
Moreover, De Forest turned to technology to improve efficiency and strengthen the digital skills of its staff.
The company utilises digital platforms to reach its target market and developed additional brands catering to other customer segments.
"One of our proudest achievements is successfully training an employee with only a lower secondary school education to become a restaurant manager with strong digital capabilities. His skills and expertise have far exceeded his formal educational background," said Mr Muhammadfahmee.
Mr Muhammadfahmee naturally gravitated towards the restaurant business.
A Lasting Impact
Over five years, De Forest Group has expanded its business to four restaurant brands with 14 branches across the three southern border provinces.
The business has created 450 jobs and generates an annual revenue of around 200 million baht.
All brands have received strong support from customers, particularly Malaysian tourists. De Forest Group has contributed to the local economy and lifted tourism in the region, he said.
Despite surpassing initial expectations, the company remains committed to continued development.
"We hope our story inspires other SMEs, especially those facing tough challenges, to persevere and overcome adversity," said Mr Muhammadfahmee.
