Bangkok-based PTG, a prominent petrol station operator, has announced ambitious plans to significantly expand its PunThai Coffee chain, aiming to open 400 new stores this year and accelerate growth to reach 5,000 outlets by 2027.
PunThai Coffee, launched in 2012 as a value-focused brand, saw substantial growth last year, adding 371 new locations to reach a total of 882 outlets. By the end of March 2024, an additional 65 sites were opened, bringing the count to 1,000 by the following month.
The majority of these outlets are franchised, with PTG projecting that around 80% of its planned 5,000 stores will be operated by franchisees.
While nearly 60% of PunThai Coffee stores are currently situated within or adjacent to PTG’s network of 2,300 petrol stations, the company intends to shift its focus in 2024 towards high-traffic areas. This includes Thailand’s Central Business Districts, shopping centers, hospitals, and universities.
This strategic move aims to boost PTG’s non-petrol business revenues over the next three years, countering the anticipated rise in electric vehicle ownership. Presently, the petrol segment accounts for 76% of PTG’s gross profits, with the non-petrol sector, which includes the 28-store premium café chain Coffee World, the convenience store chain Max Mart, and the car maintenance service Autobacs, contributing the remaining 24%. PTG plans to equalize this ratio to 50:50 by 2027.
In 2023, PTG reported a full-year revenue increase of 11%, reaching THB 198 billion ($5.4 billion). PunThai Coffee sales surged by 54%, amounting to THB 1.2 billion ($33.7 million), which constitutes 7.4% of PTG’s total revenues. In the first quarter of 2024, PunThai Coffee revenues rose sharply by 88% year-on-year to THB 494 million ($13.4 million).
The Thai branded coffee shop market is dominated by chains owned by petrol station operators. Café Amazon, operated by PTT Oil and Retail Business (PTT OR), leads the market with 4,159 stores, 54% of which are located in PTT OR petrol stations. Bangchak-operated Inthanin follows with 1,020 sites.
PTG’s aggressive expansion plans for PunThai Coffee are set to intensify competition in Thailand’s coffee shop market, particularly among the chains linked to major petrol station operators.