PTG expects to open at least 400 new PunThai Coffee sites this year and 1,000 in 2025 as part of a strategy to increase non-petrol sales and profits over the next three years
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PunThai Coffee revenues rose 88% year-on-year in the first quarter of 2024 to THB 494 m ($13.4m) | Photo credit: PunThai
Bangkok-based petrol station operator PTG has outlined plans to open 400 PunThai Coffee stores this year before accelerating outlet growth to reach 5,000 coffee shops by 2027.
The business launched value-focused PunThai Coffee in 2012 and opened 371 new locations last year to reach 882 outlets, adding a further 65 sites in the quarter ended 31 March 2024 and reaching 1,000 a month later.
The majority of PunThai Coffee stores are franchised, with PTG forecasting approximately 80% of its planned 5,000 outlets will be operated by franchisees.
While nearly 60% of PunThai stores are located within or alongside PTG’s 2,300 petrol station network, the business has said 2024 outlet growth will shift to focus on ‘high purchasing’ locations, such as Thailand’s Central Business Districts as well as shopping centres, hospitals and universities.
PTG is seeking to increase earnings from its non-petrol businesses the next three years to counter an expected rise in electric vehicle ownership. The company’s petrol business currently accounts for 76% of gross profits with its non-petrol segment, which also includes the 28-store premium café chain Coffee World, convenience store chain Max Mart and car maintenance service Autobacs, contributing the remaining 24%. PTG plans to balance the ratio to 50:50 by 2027.
PTG’s full-year revenues increased 11% in 2023 to reach THB 198bn ($5.4bn), with PunThai Coffee sales rising 54% to THB 1.2bn ($33.7m) – just 7.4% of total PTG revenues. PunThai Coffee revenues rose 88% year-on-year in the first quarter of 2024 to THB 494 m ($13.4m).
The Thai branded coffee shop market’s two largest chains, Café Amazon and Inthanin, are also owned by Thai petrol station operators. Café Amazon currently operates 4,159 stores – 54% of which are in petrol stations owned by parent company PTT Oil and Retail Business (PTT OR) – while Bangchak-operated Inthanin has 1,020 sites.