Plantation and Farm Design (Thailand) Co Ltd, operator of the Ban Rei Café coffee shops, plans to invest up to Bt100 million to expand from 108 to 150 branches this year. The investment will be funded by a loan from the Small and Medium Enterprise Development Bank of Thailand. The application is proceeding as planned and it is believed the bank will approve the loan in the second quarter of the year, said the company's executive manager, Werayut Butprom.

"If the bank does not approve the loan, we will continue to expand our business but will open an average of two branches a month. We plan to open four branches per month if the bank approves the loan," he said.

 He added that the company would also expand from coffee shops to restaurants, called Ban Rei Bai Kra Prow. "We will become a food and beverage firm rather than just coffee shops," Werayut said.

With the company's expansion this year, it expects revenue growth of 20 per cent on top of sales of Bt146 million last year - Bt140 million from 108 branches of Ban Rei Café and Bt6 million from its franchise business under the Thai Chon brand. These are small coffee and tea outlets that now have 85 branches, 65 operated by franchisees.

 Werayut said demand for small coffee and teashops such as Thai Chon is strong, "because consumers get a quality product compared with the coffee and tea usually available".

As a result the company believes its franchisee business under this brand will see strong growth this year. The company expects its Thai Chon franchises will increase from 85 branches to 105 by year-end.

Werayut, who also manager of business development for Thai Chon, said the company expected its revenue from Thai Chon's franchisees to be worth Bt12 million this year.

Somluck Srimalee

The Nation