McDonald's believes the quick-service restaurant (QSR) business is still growing and plans to invest over 600 million baht on marketing, with the aim of achieving over 15% growth in 2024.
The quick-service restaurant (QSR) business in Thailand is projected to grow by 6-8% this year, driven by a rebound in the informal eating out (IEO) segment and a surge in the number of foreign tourist arrivals, says Kittiwan Anuwatesakul, chief executive of McThai Co.
The QSR business was worth around 45 billion baht in 2023, attributed to the growing fried chicken market worth more than 31 billion baht, the burger market, worth around 9.8 billion baht, and the pizza market, worth 4.2 billion baht.
"This year we must monitor all economic factors including energy prices, the cost of living, the impact of inflation and external factors from abroad. However, the company will still benefit from the rebound in the eating-out trend and increasing number of foreign tourists," Ms Kittiwan said.
Last year, McDonald's sales reached 7.2 billion baht, the highest level recorded since its establishment in Thailand over 38 years ago, representing a 31% increase from 2022.
In addition, the company's net profit reached a new high of 315 million baht, representing a 168% increase from the previous year.
"Burgers contributed 53% of revenue, while fried chicken generated 20%," Ms Kittiwan added.
McDonald's plans to further promote its McFried Chicken, which experienced a growth rate of 40% last year.
Ms Kittiwan said the company must monitor all economic factors this year.
This year, the company is introducing "DAOU x OFFROAD" as the brand representative of Generation Z as McDonald's aims to capture this demographic segment.
Ms Kittiwan said the company plans to invest over 600 million baht in 2024, up by 200 million baht from last year, for digital transformation, store renovation and the opening of new stores.
The company also plans to install self-ordering kiosks (SOKs) which support cashless payment in all 230 of its stores nationwide by the end of the year.
"This year, McDonald's plans to open more than 20 new branches and renovate 25 existing branches with designs tailored to the needs of every customer group," Ms Kittiwan said.
Furthermore, McDonald's continues to prioritise sustainability with environmental, social and governance principles, emphasising green and sustainable practices to align with the rapidly changing lifestyles and behaviours of customers, according to the company.
The company plans to open a prototype branch in Bangkok's Khlong Sam Wa district in this year's second quarter. The branch will feature exteriors that include recycled materials while electric vehicle charging points (EV Charging) and solar panels will also be installed.
The company projects that the proportion of foreign customers visiting its stores will reach 30-35%, while local customers will account for 65-70% of all customers.
"The company remains confident that its strong offensive operating strategy, backed by a total investment budget of over 600 million baht, will drive McDonald's to achieve over 15% growth this year," Ms Kittiwan noted.
