Firm secures master franchise agreement
PUBLISHED : 17 Apr 2024 at 04:00
SET-listed PTG Energy, a local oil retailer, intends to rebrand the Subway fast-food restaurant, which is not widely popular in Thailand, after securing a master franchise agreement from Subway International BV.
The company, through its subsidiary GFA Corporation (Thailand), is working on a new investment plan as well as changes to sales channels and menus in order to better serve Thai customers, said Rangsun Puangprang, chief finance officer at PTG.
“We aim to have Subway stand among the top-three quick service restaurants in Thailand in the long term,” he said.
GFA Corporation holds a 70% share in Go Luck Co, which was granted the franchise licence to operate Subway restaurants in Thailand from April 1.
Petcharat Uthaisang, chief executive of About Passion Co, the previous master franchisee holder of Subway in Thailand, holds a 5% share in Go Luck, with the remaining 25% share belonging to Lifestyle Food Co.
Subway has operated in Thailand for 21 years, but its business is less successful than overseas Subway restaurants, said Mr Rangsun.
According to online news agency MarketThink, Subway in Thailand faces many obstacles, including food pricing which is not suitable to customers in the middle-income group, oversized food portions and too many food choices on the menu, which makes customers unable to make a decision on what to buy.
Its menu needs to be improved, said Mr Rangsun.
He wants to add some local ingredients to make new Subway fast food offerings, with tastes more appealing to Thai people, including the new generation who demand healthier food.
“If we mix local dishes with Subway food, it can be better sold in the local market,” said Mr Rangsun.
At present there are slightly more than 100 branches of Subway restaurants under the franchise in Thailand.
PTG is working on a plan to allocate funds for an expansion of the branches.
