BreadTalk in growth mode
BTM (Thailand) Ltd, the operator of the BreadTalk bakery chain, will spend 900 million baht to expand its bakery business over the next five years.
Choompot Tantisoonthorn, chief operating officer for cold chain at The Minor Food Public Company, said the firm will use the budget to open 30-40 BreadTalk stores a year over the next five years.
The new investment will raise the number of BreadTalk outlets to 150 by 2020, up from the current 28.
The company plans to open a further 12 branches by the end of this year, bringing the total number to 40.
Sales of BreadTalk are expected to reach 500 million baht this year and are expected to rise to 3.6 billion baht by 2020, said Mr Choompot.
Minor Food formed a joint venture with Singaporean bakery chain BreadTalk Group in 2014. Minor Food and BreadTalk hold equal stakes of 50% in the joint-venture company.
Minor Food also holds a 15% stake in BreadTalk in Singapore.
The company expanded into baked goods because it saw the growth potential of the bakery business in Thailand and Minor Food did not have a bakery venture in its portfolio.
Currently, Minor Food operates several food brands under its portfolio including The Pizza Company, Swensen’s ice cream, The Coffee Club, Dairy Queen, Thai Express and BreadTalk.
The first BreadTalk branch in Thailand was opened in 2005.
BreadTalk Group also operates Food Republic restaurant chain and Din Tai Fung Chinese restaurant in Thailand.
There are more than 1,000 BreadTalk stores in 16 countries in Asia and the Middle East.
“We believe the bakery business will continue to grow due to changing consumer lifestyles, particularly among teenagers and working people who eat baked products more than in the past,” BTM general manager Banyut Athiyutkul said.
The company aims for BreadTalk to become the market leader in Thailand’s specialty bakery chain business within the next 3-5 years.
He said the specialty bakery chain business in Thailand is worth 3 billion baht with major chains such Yamazaki and Gateaux House dominating the market.