Thai Energy Firm PTT Expands into Fast Food to Boost Non-Oil Revenue
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)
WHAT DO YOU THINK?
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.
Operates 3 Offshore Rigs
- Ecuador to Offer Oil Blocks Under New Bidding Terms in Jan (Oct 06)
- ExxonMobil Says Will Drop Discussions Over Indonesia's East Natuna (Jul 18)
- Hydrocarbons Encountered at Te Giac Trang Field Offshore Vietnam (Dec 20)