The Pizza Company, a subsidiary of Minor Food Group Plc, is set to invest more than 300 million baht this year to open new locations and renovate existing ones.
Anupon Nitiyanant, the chief operating officer at Minor Food Group, highlighted that challenging macroeconomic conditions, escalating costs, and stiff competition might impact the restaurant industry this year.
On January 1, the government increased the daily minimum wage, with hikes ranging from 7 to 55 baht.
“We have to raise our daily wage even higher than the official minimum wage to retain staff,” stated Mr. Anupon.
Additionally, the restaurant sector is dealing with rising prices for raw materials, including dairy products and fruits.
In response, the company is prioritizing cost management and utilizing its large purchasing volumes to keep expenses in check, according to Mr. Anupon.
Mr. Anupon also pointed out that the industry would face intense competition this year, especially with new Chinese restaurant operators entering the market.
Patt Pongwittayapipat, general manager of The Pizza Company, announced plans to inaugurate 20 new outlets this year, including standalone and hypermarket branches, with a total investment of 200 million baht.
The Pizza Company currently runs 430 outlets across the country and added 10 new locations in 2024, Mr. Patt noted.
He mentioned that about 60% of the new stores are slated for provincial areas, including a first-time opening in Mae Hong Son.
Presently, delivery orders represent approximately 50% of The Pizza Company’s sales, with dine-in and takeaway accounting for about 30% and 20%, respectively.
The addition of new stores will also improve delivery efficiency by acting as extra distribution points, Mr. Patt explained.
He further mentioned plans to remodel 80-100 stores this year, allocating a budget of over 100 million baht for these renovations.
The company also intends to spend 300 million baht on marketing efforts.
The ongoing rebound in tourism is likely to bolster sales in the company’s locations in tourist areas, Mr. Patt anticipated.
The company has introduced a Buy One Get One Plus promotion, starting today and running until April 20 this year.
The promotion offers customers two pizzas starting at 279 baht, with additional benefits like free delivery from February 20 to March 12 and from April 1 to April 20.
Mr. Patt projected that The Pizza Company’s sales would increase by more than 10% this year.
