Food business, franchising growing in Thailand
With the Covid-19 outbreak dealing a heavy blow to the food shop and restaurant segment, SMEs and Thai entrepreneurs must create new business models to expand their client base, said Boonprasert Pupan, president of Franchise and Licence Association at the SME D Bank seminar titled ‘Deep analysis of Food business in 2020’.
In addition to improving efficiency of the food delivery service, better storefront management will help boost turnover, he said
“According to last year's data, the delivery business was worth a total of Bt35 billion. It is growing rapidly and the popularity of food- ordering applications has led to market expansion of operators.
" It creates opportunities and challenges that require entrepreneurs to adjust their business plans. It also encourages the consolidation of operators within the business chain while franchise purchasing is another option favoured by SMEs, " Boonprasert said.
He attributed the rapid rise of the franchise business to its new approach and drive for fast success by the operators. The economic value of franchise businesses in Thailand reached Bt300 billion last year with an average growth rate of 10 per cent per year. About 15,000 - 20,000 are interested in entering the franchise business. Growth in market and players will continue for both Thai and foreign franchises as competition intensifies.
The franchise business in Thailand is also popular in the world market, such as massaman curry, tom yum goong, spa and, especially Thai boxing. Foreign investors from over 130 countries have applied for licences but " these are just business, not branding, so imitations would increase. "If Thai boxing can be a franchise business, it will be able to expand internationally save the cost of opening a new branch," he said.
Among foreign interest in Thai franchising, food accounts for 60-70 per cent, education 20 per cent. Others are Thai spa and massages, car care business, Muay Thai, and waste recycling etc.
The franchise business in Thailand comprises 10 main categories: food, beverage, snack, education, Thai spa and massage, car care, retail, real estate, service, and logistics.
Bubble milk tea has attracted much interest recently.
