Burger King's local sales have risen faster than expected, boosting the American fast-food chain's confidence about expanding further in the country.
Despite the lacklustre economy, sales in the first nine months of the year jumped 40% to 1.27 billion baht, beating the earlier projection of 20% growth.
The company attributes the growth to the launch of its value-for-money menu, including a pork burger for just 59 baht.
"The strategy has helped lure new customers who have never tried a Burger King product," said Prapat Siangjan, general manager of Burger King Thailand Co.
Though the spending per head declined to 220 baht per time from 230 baht, the increasing number of new visitors has boosted sales growth.
Moreover, its has seen a huge surge in sales from tourist destinations such as Phuket and Samui, he added.
A market analyst who asked to remain anonymous said that although consumers tend to be more cautious about spending, Thailand's fast-food business continues to grow at an average of 10% per year.
Operators have adjusted their business strategies and offer more affordable items to draw new customers to visit their stores.
The fast food industry was worth 34 billion baht in 2015 and new players continue to enter the Thai market, according to the market analyst.
Of the total, about 14-17 billion baht or 40% of the total market belongs to fried chicken, which grew by over 11%, compared with industry growth of 9%.
The burger business is forecast to be worth 5.8 billion baht, up 6%, and pizza business was worth 3.9 billion baht, growing by 3%. Pizza delivery was worth 7.4 billion baht, up by 8%.
Mr Prapat said the company opened the latest Burger King at The Mall Nakhon Ratchasima -- the first branch in the Northeast.
Burger King chose the Northeast because the local economy is improving and the region has no premium burger joint.
"Sales at this outlet are expected to reach 4 million baht this month, up from an earlier projection of 2 million," Mr Prapat said. "It recorded the highest sales compared to every new branch we opened in the past."
He said that more branches in upcountry areas will be opened soon while the company is set to offer more affordable burgers on the market.
Under this strategy, local customers will increase to 60% of sales next year while foreign customers will account for the remaining 40%.
With the warm response from the Northeast market, the company will spend about 375 million baht to open 15 new branches next year.
Of the total, seven will be in Bangkok and the remaining eight upcountry. Four branches will be in the Northeast, including Udon Thani and Khon Kaen.
Currently, the company operates 67 Burger King outlets across the country. Five new branches will be opened in the remainder of this year.
With the country's consumer purchasing power yet to fully rebound, the company expects sales this year to grow by 35% to 1.7 billion baht.
Apart from Thailand, one Burger King is in Myanmar and two branches in the Maldives.
The company is seeking licensees to open Burger King branches in two new countries in Asia in the future.