Bangkok--26 Apr--KASIKORNBANK
KASIKORNBANK and Bangchak Retail are offering loans to SME operators who wish to open an Inthanin Coffee shop. By the end of 2017, at least 80 million Baht in new loans will be extended under this service. Numerous coffee brands are contributing to the currently intensified retail coffee market competition, valued at 17 billion Baht.
According to Mr. Pipavat Bhadranavik, KASIKORNBANK First Senior Vice President, KBank, the Bank and Bangchak Retail are promoting secure business ownership among Thai operators with a loan to finance the opening of Inthanin Coffee shops, equivalent to 70 percent of total investment. Provided by KBank, the loan has a five-year term, plus a 5-million-Baht loan guarantee by the Thai Credit Guarantee Corporation (TCG). No business experience, collateral, or bank statements are required for loan application. By year-end, the Bank expects to see 80 million Baht in new loans extended under this service.
Thailand has seen more than 110 coffee brands introduced, driven by the increasing number of Thai coffee drinkers, thereby resulting in intense competition. To be a successful coffee shop franchisee, one is recommended to choose a franchise brand that is already established in the market, with an existing reputation, customer base, creditable quality, standard prices, and professional business administration that responds well to customer lifestyles. Inthanin is among the top retail coffee franchises in terms of popularity, growing its network largely alongside the gas station business. Apart from Bangchak service stations, the coffee brand has expanded its presence in new channels, including office buildings, department stores, and educational institutes.
Mr. Viboon Wongsakul, Bangchak Retail Managing Director, said Thailand's retail coffee industry is worth approximately 17 billion Baht, of which 75 percent, or 12.75 billion Baht, is contributed by franchise businesses. This proportion is on the rise.
Two business platforms are available for Inthanin franchisees: Inthanin Garden, with a simple but elegant, easy-to-access style, offering 100-percent organic Arabica coffee; and Inthanin Coffee, with a simple, modern look, yet stylish and friendly, offering a bolder coffee taste. Total investment for each of these outlets is around 2-3 million Baht, depending largely on shop area.
Bangchak Retail is planning for expansion with 120 new Inthanin outlets within this year, in addition to the 400 existing branches, and will reach at least 1,000 in the next three to five years. Inthanin shops will be remodeled with a more modern look and eco-friendly designs and materials, including its "Bio Cup" which is made from plants and is biodegradable. Apart from the coffee franchise, the company, in cooperation with KBank, will soon offer a loan for SPAR franchises, a Netherlands-based retail chain which has already granted an exclusive license to Bangchak Retail.
Mr. Pipavat added that, over the past year, the retail franchise business totaled 250 billion Baht in market value, or 8 percent of the country's retail industry. Growth in food, beverage and ice cream, and educational franchise businesses registered 24 percent, 21 percent and 17 percent, respectively. The franchise success story mostly involves famous brands, which are well-recognized by customers, and offer financial and equipment support, training service, and a practical business platform. KBank has set a loan target for franchise businesses at 2.22 billion Baht, or an increase of 15 percent from the previous year.