Bangkok--23 Aug--KASIKORNBANK
KASIKORNBANK (KBank) joins hands with CP Retailink Co., Ltd. to launch a program of franchise credit for Caffe' Muan Chon coffee shop establishment. Amid the thriving cafe market, the program aims at encouraging Thai people to own a cafe business through collateral-free financial at 100 percent of investment value, with low interest rates. KBank expects to extend total loans of 210 million Baht under this program by this yearend.
Mr. Surat Leelataviwat, KBank Executive Vice President said growth has been evident in the franchise businesses, in both the franchisor and franchisee sides. In 2017, the overall market value of these businesses amounted to more than 200 billion Baht and is expected to rise 10-15 percent in 2018. Currently, there are over 100,000 franchise branches across the country and the number tends to grow further. Each year, there are around 15,000-20,000 persons inquiring about details of franchise businesses. The food franchise businesses hold the largest market share at 22.9 percent, then the beverage and ice cream franchise businesses at 21.9 percent, of which 21.6 percent share is occupied by the fresh coffee segment.
KBank has worked with CP Retailink Co., Ltd. to offer loan facility to Caffe' Muan Chon franchise to encourage Thais to have their own business. The loan is granted 100 percent of investment value with low interest and no collateral required. Eligible borrowers, with no business experience required, are also provided with cash management service and electronic data capture (EDC) machine for the use of K PLUS SHOP service for enhanced security without the need to use cash in their business. KBank aims to extend 210 million Baht in this type of loan by the end of this year.
Dr. Naris Thamkuakool, Senior Vice President, CP Retailink Co., Ltd., said that Caffe' Muan Chon, under the "Coffee creates jobs for the society and communities" concept, was established in 2010. Aside from operating the coffee business, Caffe' Muan Chon intends to help create new entrepreneurs via our coffee making training program. Over the past eight years since its inception, a total of 84 training courses have been organized, with over 8,700 would-be coffee entrepreneurs participating in them. Our training focuses on providing basic knowledge on how to operate a sustainable coffee business, covering guidelines to choose an appropriate location, how to make a market survey, collect consumer data, use coffee equipment and make various types of coffee based on our recipes. This training is offered to those interested in opening a coffee shop, without any charges and conditions. In 2013, CP Retailink decided to launch the Caffe' Muan Chon franchise business as an alternative to promote new entrepreneurs wanting to own a coffee business, as well as existing entrepreneurs wanting to operate a coffee business.
There are four sizes of Caffe' Muan Chon franchise, starting with a kiosk or SS size, requiring an initial investment of not more than 300,000 Baht. Those in sizes S, M and L are suitable for entrepreneurs having a store space of more than 61 m2. Caffe' Muan Chon has a professional team to take care and support entrepreneurs interested in the coffee business throughout the agreement term. This includes free location assessment, store design/decoration advice and free business/ management knowledge via actual operations at our real coffee store. The team will also offer advice on marketing strategies and sales promotions and there is a technical team to help our franchisees throughout the country. For more information about Caffe' Muan Chon franchise, please call 02-044-1111 press 2.
Caffe' Muan Chon aims to carry on coffee shop business with the "Coffee creates jobs for the society and communities" concept by joining hands with franchisees interested in creating a new coffee experience for social conscious consumers who will not only enjoy good coffee with affordable prices, but also take part in promoting farming occupations and local SMEs. Additionally, the consumers can pay it forward by donating 1 Baht per a cup of any beverage item bought from over 150 branches of Caffe' Muan Chon nationwide to temples and Foundation for Children.
Mr. Surat said that KBank's outstanding loans for franchise business currently totals 2,439 million Baht, most of which are in four key businesses, namely, retail trade, food, bakery and beverages, respectively. Franchise credit has constantly risen because franchise is an interesting choice for aspiring entrepreneurs with no business experience. KBank targets to achieve a 5-percent rise in franchise credit this year.