Thai Energy Firm PTT Expands into Fast Food to Boost Non-Oil Revenue

Reuters

BANGKOK, July 10 (Reuters) - PTT PCL has signed a franchise deal with U.S.-based fast food chain Texas Chicken as Thailand's largest energy firm tries to boost its revenue from non-oil businesses amid weak crude oil prices.

PTT plans to invest 1.5 billion baht ($44.2 million) to open at least 70 Texas Chicken branches over the next five years, Buranin Rattanasombat, executive vice-president for PTT's retail marketing, told reporters on Friday, with the first restaurant due to open in November.

The franchise is PTT's first major investment into Thailand's 30 billion baht ($884 million) fast food market: the company currently operates coffee shops under the Cafe Amazon and Daddy Dough local brands.

PTT plans to sign more food franchise deals in a bid to make non-oil businesses contribute about half of its overall profit over the next five years from just 20 percent now, Chief Operating Officer Sarun Rungkasiri added.

Texas Chicken will compete with KFC Thailand, which is operated by U.S. firm Yum Brands Inc. Last month, KFC Thailand, which notches the highest sales among fast food fried chicken restaurants, said it planned to boost the number of its branches in to 800 by 2020 from 532 at end-April. ($1 = 33.9300 baht)

(Reporting by Khettiya Jittapong and Manunphattr Dhanananphorn; Editing by Miral Fahmy)

 

Copyright 2016 Thomson Reuters. Click for Restrictions.

WHAT DO YOU THINK?

Click on the button below to add a comment.
Post a Comment
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

Related Companies
Events  SUBSCRIBE TO OUR NEWSLETTER

Our Privacy Pledge
SUBSCRIBE



Most Popular Articles

From the Career Center
Jobs that may interest you
Commercial Director - Terminals
Expertise: Business Development
Location: South Carolina, 
 
Senior Engineer New Rule Implementation
Expertise: Engineering Manager|Environmental Engineer
Location: Deer Park
 
Senior Legal Counsel - Houston, TX
Expertise: Legal
Location: Houston-EP Center Americas, United States, 
 
search for more jobs

Brent Crude Oil : $54.46/BBL 0.96%
Light Crude Oil : $51.68/BBL 1.21%
Natural Gas : $3.44/MMBtu 1.99%
Updated in last 24 hours