SET-listed S&P Syndicate Plc (SNP), the operator of S&P bakery and restaurant chain, plans to expand further in Asean to support its goal to become a regional brand by 2020.
Kamtorn Sila-On, the company's chief supply chain officer, said it will focus on opening more restaurants in Cambodia, Laos, Myanmar and Vietnam in the next few years. After that, it will move into the Philippines and Indonesia.
The company is now conducting a feasibility study to open the first S&P restaurant in Myanmar on the back of the country's growing economy.
Business expansion abroad will take several forms, ranging from its own investment to joint ventures with local business partners and selling franchise rights to local investors.
The company began its overseas presence in Cambodia two years ago. It operates two S&P restaurants in Phnom Penh and more branches are expected to open next year.
He said S&P's two overseas restaurants have been very successful.
Mr Kamtorn said raising its profile in Asean countries will serve its goal to become a regional brand by 2020.
At home, he said S&P plans to expand its bakery and restaurant business next year by opening new restaurants on a franchise basis to increase the number of restaurants to 1,000 by 2020. The company currently operates about 480 S&P restaurants nationwide.
Mr Kamtorn said S&P started expanding its restaurant operations on a franchise basis for the first time with a restaurant at Don Mueang airport and more franchised branches will be opened.
The company also plans to spend about 500 million baht to expand its business next year.
About 300 million baht will be spent on installing new machines to increase the production capacity of bakery products and 200 million baht will be earmarked for renovating its existing restaurants and opening 30-40 new restaurants and bakery shops.
By the end of next year, S&P will have around 520 restaurants and bakery outlets.
In addition, the company will change its freezing system to increase production efficiency.
Mr Kamtorn said competition in the food and bakery business is fierce. Apart from opening new restaurants and bakery shops, the company will allocate a budget next year to install solar cells on the roofs of its factories in Lat Krabang and Sukhumvit.
Last week, the company announced it spent 30 million baht to install solar cells with 510-kilowatt capacity on the roof of its baked goods factory on Bang Na-Trat Highway. This will slash electricity costs by 3-4 million baht a year.
S&P posted a net profit of 346 million baht on revenue totalling 5.87 billion baht for the first nine months.
SNP shares closed yesterday on the SET at 26 baht, up 50 satang, in trade worth 1.27 million baht.