PTT Oil and Retail Business Plc (PTTOR), an arm of national oil and gas conglomerate PTT Plc, plans to open 350-400 Cafe Amazon coffee shops a year over the next 3-5 years in a drive to become a global coffee brand over the next decade.
Suchat Ramarch, senior executive vice-president for retail marketing, said the expansion plan begins this year.
The same number are projected to be launched for the next two years, he said.
Of the total, more than 300 new coffee shops will open in Thailand, with the remainder abroad. Each will have space between 40 and 200 square metres.
The branch expansion will bring total outlets to exceed 3,000 by year-end. Some 85% of the expansion will come from franchises, and the rest will be from PTTOR's own investment and joint ventures with local partners.
Mr Suchat did not disclose the investment budget for expansion this year, citing the company's process of listing on the Stock Exchange of Thailand.
In the past, average investment for each Cafe Amazon was 2.5-3 million baht, depending on space, he said.
Competition in the coffee market is fierce, but there remains potential to grow because coffee consumption in Thailand is still low compared with that of other countries.
The total coffee market in Thailand is estimated at 64.7 billion baht. Of the total, out-of-home coffee is worth 26.7 billion baht and the remaining 38 billion baht is from at-home consumption.
The coffee chain was founded 17 years ago. It's been successful both in the Thai market and abroad because of continuous product development, good locations and strong business partners.
Cafe Amazon is the market leader in Thailand's out-of-home consumption with 2,500 shops nationwide.
The chain also has about 200 coffee shops outside of Thailand, in Cambodia, Laos, the Philippines, Japan, Myanmar and Oman.
The latest branch recently opened in Singapore, and a new branch will open in Malaysia next month.
"China and Vietnam are also in our pipeline for expansion," Mr Suchat said. "Although the competition is very fierce in China, it is a very attractive market because of a massive population."
He said the company is studying local laws and marketing competition before opening its first Cafe Amazon in China this year.
The expansion may come under PTTOR's own investment or a master franchise for local interested investors.
For the Vietnamese market, the company may open its first coffee shop by the end of this year or early next year, Mr Suchat said, adding that the company is studying the proper business model for Cafe Amazon in Vietnam.
