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May 29, 2025 – At the 11th edition of ASSET-H&C’s Get Together series, 18 participants from 7 member schools and IECD projects gathered virtually to discuss one of the typical dilemmas facing social businesses in the education sector: How can we diversify revenues to achieve financial sustainability—without losing sight of our social mission?

Through an in-depth case study of Hospitality & Catering Training Center (HCTC) in Mae Sot, Thailand, our speaker – Louis Mouginot – Project Manager, HCTC – Passport Restaurant offered both inspiration and practical insights for schools seeking to strengthen their own social business models.

HCTC’S JOURNEY: FROM NON-PROFITABLE TO RESILIENT

Founded in 2009, HCTC provides training in hospitality, with its Passport Restaurant & French Bakery serving as a key component of the learning model. By 2021–2022, HCTC faced a critical crossroads. Its business model was not financially viable, with the training restaurant operating only two evenings per week and generating insufficient income to sustain operations.

To address this, HCTC restructured its business plan and launched a new model in June 2023, focused on diversifying its commercial offers and stabilizing its financial foundation.

THE PARADOX OF REVENUE DIVERSIFICATION

As Louis Mouginot explained, the heart of the challenge is a paradox familiar to many social businesses:

“Revenue diversification must support, not distort, our mission. Growth must strengthen—not compromise—our training.”

HCTC needed to increase income, reduce risks, and expand its customer base—while preserving high training quality and a mission-driven identity.

HCTC’S DIVERSIFICATION STRATEGY

In response to these challenges, HCTC executed a phased strategy for diversification, which unfolded across four pillars:

1. Training Restaurant Expansion

• The restaurant evolved from a 2-day fine dining service to a 5-day bistro-style operation (Wednesday to Sunday).
• The menu was diversified with daily products, coffee & drinks, and a rotating bakery offering.
• HCTC also hosted regular chef dinners, inviting partner chefs from Bangkok to create unique customer experiences.

2. Events

• A new meeting room was developed within the restaurant, allowing for seminars and corporate events several times per week.
• The team began hosting private events such as weddings and private dinners, expanding beyond regular restaurant hours.

3. Short Courses

• HCTC launched short training courses for both NGO partners (serving young Burmese beneficiaries) and private individuals.
• Courses included barista, bakery, and specialty hospitality topics, providing both additional income and new training opportunities.

4. Catering & Delivery

• The team expanded into external catering services.
• They also launched an online delivery service via Grab, making HCTC’s products more accessible to a broader audience.

MEASURABLE IMPACT

The results of this strategy have been transformative:

• HCTC saw a 40% income increase after implementing its diversification strategy in 2023.
• Private events and short courses now contribute significantly to revenue, helping balance reliance on traditional B2B partnerships.
• The training restaurant’s income now covers approximately 85–90% of HCTC’s operational costs—a critical achievement for long-term sustainability.
• Importantly, this was accomplished with only two additional staff members, while student learning quality remains central to all activities.

As Louis emphasized, this diversified approach has also reduced business risk:
“If one revenue stream falters, others help maintain stability.”

CHALLENGES AND LESSONS SHARED

Participants joined smaller groups to reflect on how these lessons could apply in their own schools—and what barriers they face. Key challenges included:

• Limited human resources to run commercial activities while ensuring training excellence
• Legal and tax obstacles, particularly in Cambodia, which limit business operations
• Lack of infrastructure for catering or event services offers
• School holidays reducing the capacity of adapting to B2B customers’ needs for constancy
• Struggles of maintaining business with low return on investment

Several schools also shared recent experiences responding to unexpected challenges—such as Sanon’s recovery efforts following earthquake damage.

TOWARD STRONGER COLLABORATION

This “Social Business Paradox” Series is an effort of ASSET-H&C network aimed to address school’s perpetual challenges of balancing social mission and business operations on the foundation of collective wisdom & hands-on experiences. With this attempt, we hope to strengthen collective learning, improve practices, and promote collaborations across borders, and accelerate each school’s ability to navigate social businesses towards their intended missions.

Join the Movement:

If this recap sparks your interest, or if you seek to integrate similar practices in your institution, don’t hesitate to reach out or join our future Get Togethers. Together, we can achieve more and pave the way for a sustainable future.

Contact for further details or resources: via ASSET-H&C fanpage or email at asset@iecd.org.  

Alone, we go faster. Together, we go further!”