Sunday, October 25, 2020

Outbreak brings Thai franchise business down by 30%

Jul 16. 2020
Poonpong Naiyanapakorn, DBD's deputy director-general
Poonpong Naiyanapakorn, DBD's deputy director-general
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By The Nation

The Covid-19 outbreak has brought the value of Thai franchise businesses worth Bt300 billion down by Bt90 billion or 30 per cent, the Department of Business Development (DBD) said.

Over the past four months, the outbreak has had a 100-per-cent impact on hotel, spa and education franchises, 70 to 80 per cent on food and beverage franchises and 30 to 50 per cent on retail, convenience store and pharmacy franchises.

Poonpong Naiyanapakorn, the department's deputy director-general, said franchises’ revenue and cash flow had dropped due to the outbreak, while operators were forced to bear costs and expenses, such as rents, loan repayments and employees’ wages, adding that many franchises are shifting to online marketplaces and adding a cashless payment system.

“Hence, the department has come up with a plan to help franchises recover by supporting them to create careers, generate income and adapt their businesses so they are in line with the new normal,” he said. “The department has also cooperated with financial institutions to issue measures to boost franchises’ liquidity, such as reducing interest, postponing debt repayment and granting loans.”

He added that the department has cooperated with the Export-Import Bank of Thailand, Kasikorn Bank, Siam Commercial Bank, and Franchise and Licence Association to give out the Thailand Franchise Award 2020 (TFA 2020) in a bid to encourage Thai franchises to boost their potential and meet international standards under the new normal.

“Franchises can register to participate in this event from now until August 10 this year,” he added.

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