SET-listed S&P Syndicate Plc (SNP), the country's largest bakery and restaurant chain, is seeking more strategic partners to expand its business amid fiercer competition from new domestic and international players.
Pravesvudhi Raiva, president of S&P Syndicated, says there is huge potential to grow his bakery and restaurant business in both Thailand and Asean.
President Pravesvudhi Raiva said the restaurant business was more competitive than in the past due to the entry of new players, especially Japanese restaurants.
S&P, a 41-year-old brand, needs to change and refresh its look to be more modern, he said. The move aims to reach younger customers aged 15-30.
"We will look for more strategic partners, both local and international, in a bid to grow our business sustainably. We will change from a family business to a professionally run business to drive S&P to become an international food brand one day," Mr Pravesvudhi said.
This year has been difficult for S&P because of weak consumer purchasing power. This will result in flat sales growth but it will resume aggressive investment next year.
Mr Pravesvudhi expects sales this year will be around 6 billion baht, on par with last year. In the first nine months, it posted a net profit of 313.96 million baht on revenue of 5.3 billion.
The company is set to spend 400 million baht to open about 40 restaurants and bakery shops and renovate existing outlets next year. Its total outlets will reach 500 in 2015.
Five outlets will be opened in Singapore and Europe.
According to an S&P market survey, customers regard S&P as a restaurant for adults and elderly people, so it will focus on refreshing its brand image.
Mr Pravesvudhi said his family's second generation has joined the company to bring in fresh ideas and access younger and lifestyle-oriented people.
S&P operates eight brands of restaurants, bakery shops and cafes with 460 branches in Thailand and abroad. About 440 are under the S&P brand, with BlueCup, Patio, Patara, Grand Seaside, Umenohana, Vanilla and Kaizen making up the others.
With the Asean Economic Community set to launch by the end of next year, the company will open more S&P restaurants in the region.
It opened an S&P restaurant at Aeon Mall shopping complex in Phnom Penh six months ago. More S&P restaurants will be opened in Cambodia, Laos, Myanmar and Vietnam soon.
"It is a huge opportunity for S&P restaurants to expand in both domestic and Asean markets. We hope to have about 1,000 S&P restaurants and cafes in the next few years," Mr Pravesvudhi said.
Shares of SNP closed on Friday on the Stock Exchange of Thailand at 26.50 baht, down 25 satang, in trade worth 160,000 baht.