This week, we interviewed the founder and CEO of Thalias, Arnaud Darc. Mr. Darc founded Thalias in 1997 and has become a prominent figure in the country’s business community. Mr. Darc served as the EuroCham chairman from 2016 to 2020 and as the President of CCI France Cambodge from 2014 to 2016. Read the interview to find out about Mr. Darc’s next plans for Thalias and what he thinks about Phnom Penh’s transformation over the past two decades.

EuroCham: You have a long history of doing business in Phnom Penh that started in 1997. Could you tell us what brought you here and why you decided to stay?

Arnaud: My journey begins in February 1994, stepping off a plane and into the bustling city of Phnom Penh for the first time. I was drawn to this place, with its rich tapestry of cultural history and the scent of potential in the air. This was a city on the cusp of transformation, and the allure was irresistible.

My first professional steps were taken within the elegant halls of Sofitel Cambodiana, a prestigious hotel managed by the internationally renowned Accor Group. As an intern and later a cost controller, I navigated the intricacies of the hospitality industry, learning, growing, expanding my horizons.

During this time, I also fulfilled my military service, proudly serving as a “VSNE” – a Volunteer for National Service in Businesses. This was a period of commitment and dedication, extending from 1994 until 1997.

While the business environment was intriguing, it was the people of Cambodia that truly captured my heart. Their resilience in the face of adversity, their warmth and hospitality, moved me profoundly. It was this, more than anything, that transformed Phnom Penh from a foreign city into a place I could call home.

This sense of connection, of belonging, was a catalyst. It spurred me to lay the foundation for what would become Thalias, a symbol of growth and development within the city. As the years rolled on, I watched with pride as Thalias blossomed, mirroring the transformation of Phnom Penh itself.

The journey wasn’t without its obstacles, of course. There were challenges to overcome, obstacles to navigate. But the opportunity to contribute to Cambodia’s growth, to observe the ripple effect of our work within the local community, brought me immense satisfaction.

The complexity and variations in this tale, much like the city of Phnom Penh itself, hold a certain perplexity and burstiness. It’s a story of growth, development, and resilience, and I am proud to be a part of it.

EuroCham: What was the business landscape like then, compared to now?

Arnaud: In 1994, the bustling city of Phnom Penh, Cambodia, was the stage of my arrival. A city undergoing a pivotal economic metamorphosis, the birth of a market economy was taking place, heavily leaning on foreign capital and markets. The business terrain was an unrefined tableau, ripe with opportunities to contribute to the resurgence of a nation rebounding from a somber past. A diversification process was in motion within the economy, seeing the government roll out policies such as the Rice Export Policy, an initiative designed to jump-start job creation.

However, this path was not devoid of obstacles. The challenges were colossal, ranging from a scarce supply of skilled labor, an infrastructure that fell short of the city’s needs, and a pervasive lack of transparency that cast a long, dark shadow on every corner.

Zooming into the future, to the year 2010, the landscape had undergone a dramatic transformation. An emphasis on regional integration had been fortified, and the country was riding a wave of macroeconomic stability and growth that had lasted a decade. Several sectors, including tourism, garment production, construction and real estate, and agriculture, had emerged as giants contributing to the economy’s growth. Poverty rates were on the decline, a sign of progress that couldn’t be ignored.

Foreign direct investment policies had morphed into a more attractive proposition, enticing with incentives such as total foreign ownership of companies and duty-free imports. Yet, the enforcement of laws and regulations continued to pose a challenge, a persistent thorn in the side of progress.

Nevertheless, I firmly believe that Thalias, alongside other entities, played a pivotal role in this transformative period. We contributed to the city’s growth, embraced the changes, and faced the challenges head-on, steadfast in our commitment to the city’s progression.

EuroCham: Thalias Hospitality Group recently acquired Almond Hospitality Group, another strong presence in the industry. How did this come about and what is your vision for this partnership?

Arnaud: The intertwined narrative of Thalias Hospitality Group and Almond Hospitality Group began in the year 1994. The blossoming of this partnership coincided with my entry into the enigmatic land of Cambodia. It was then that I had the serendipity of crossing paths with the dynamic Luu Meng. In the year 2005, a novel project stirred our collaborative spirit.

The Malis restaurant project was the catalyst that brought us together; it was our brainchild, our beacon of hope. A beacon that illuminated the culinary landscape of Cambodia with the first restaurant devoted entirely to the local cuisine. As we were engrossed in this initiative, Luu Meng was simultaneously weaving the fabric of the Almond Group along with a group of investors.

The evolution of this partnership, however, was not restricted to these parallel endeavors. What ensued was a continuum of collaboration between the Thalias and Almond groups, a symbiosis that enriched both entities. The idea of amalgamating both groups was not an impromptu decision; it was a vision that had existed, lurking in our minds since the inception of our partnership.

A significant event that catalyzed this unification was the recent aftermath of the COVID-19 pandemic. It served as a facilitator, enabling the acquisition and thereby fortifying the newly formed entity. This strategic move laid a robust foundation for future projects, ensuring a sustainable trajectory of growth and development.

But, the ambitions of this newly born partnership do not confine within the borders of Cambodia. We envision a future where our presence extends beyond the Cambodian frontier. The ASEAN region is in our crosshairs, hinting towards a strategic expansion in this dynamic and diverse region.
 

EuroCham: We hear there are already two new restaurants in the pipeline. What are they and what kind of cuisine and ambiance can we expect?

Arnaud: In this contemporary epoch, the joy of cutting the ribbon and throwing open the doors to three new gastronomic adventures, in the form of our establishments, Khema, Go, and Siena, has been ours. Nestled within the pulsating heart of the Flatiron By Meridian iconic building, these venues have been designed to delight, inspire and tantalize your taste buds.

Siena, our Italian gem in the crown, is poised on the brink of its grand inauguration, a momentous event scheduled to unfurl by the termination of August. The aroma of freshly baked Italian bread, the allure of handmade pasta, and the charm of vintage Chianti await you.

Moreover, our portfolio of culinary experiences is set to burgeon further. The excitement is palpable, as we prepare to introduce two more unique dining concepts. Come this October 2023, Toul Kork will be the proud host to a new standard in French cuisine, a fine dining steakhouse that promises an experience as exquisite as the carefully curated cuts of meat it will serve.

Meanwhile, as the New Year dawns in January 2024, a fresh reinterpretation of the beloved Yisang Chinese restaurant will make its debut in the Flatiron by Meridian. Prepare to embark on a culinary journey that traverses the landscapes of China, with innovative dishes that retain the essence of tradition while embracing the avant-garde.

And that’s not all! The success of Khema Go has inspired us to lay the foundations for expanding this popular concept across the city. The latter part of this year will witness the emergence of several Khema Go outlets, bringing our signature blend of quality and convenience to a neighborhood near you.

Indeed, these are exciting times. As we continue to evolve and expand, we look forward to serving you, our valued patrons, with the best of global cuisine, right here in the heart of our beloved city. Stay tuned for more updates, and in the meantime, we invite you to dine with us and relish the experiences we offer.

EuroCham: As a successful businessman and entrepreneur who has seen the dramatic rise of Cambodia over the past two decades, I’d like to ask: where does it head next, in terms of business and investment opportunities?

Arnaud: Over the course of the last twenty years, nestled in the heart of Southeast Asia, Cambodia has unfurled like a lotus flower. Its majestic transformation has been a sight to behold, a journey I have been incredibly fortunate to witness first-hand. As the co-founder of Thalias Hospitality Group, I have been part of this riveting narrative, charting a course that mirrors the nation’s own trajectory.

From our humble beginnings, with a single quaint eatery, we have grown leaps and bounds, a testament to our unwavering commitment and the resilience of the Cambodian spirit. Today, our story encapsulates the acquisition of the renowned Almond Group, a portfolio that boasts popular hotels and eateries, and even a media outlet. An odyssey, it is, that’s far from over.

As we gaze into the horizon, the future of Cambodia is ablaze with promise. The country steadily morphs into a bustling hub, brimming with investment opportunities and a thriving spirit of entrepreneurship. A landscape, once scarred by conflict, now pulsates with potential and an energy that’s infectious.

At Thalias, our sight is set on capitalizing this dynamic environment. Our immediate strategy involves issuing corporate bonds, a calculated move, an integral part of our plan to navigate the course towards an Initial Public Offering (IPO) in Cambodia.

This milestone, anticipated to be just five years down the road, is not merely about strengthening our financial foothold. It’s a beacon that illuminates our path to seize unexplored opportunities, to broaden our horizons, to grow, to expand.

Our growth trajectory is not confined to adding more establishments to our repertoire. It is about making strategic investments, about diving deeper into the heart of Cambodia’s lively culinary landscape. We envision ourselves as a formidable force, a name synonymous with the country’s gastronomic scene, a brand that crosses national boundaries, reaching out into the ASEAN region.

Yet, our vision extends beyond the confines of business growth. It’s about being a cog in the wheel that drives Cambodia’s economic development. It’s about playing our part in bringing global recognition to this beautiful country. And as we move forward, we carry with us the spirit of Cambodia, and the aspiration to give back to the country that has given us so much.