D-Land cuts rest area plans from 20 to 5

D-Land cuts rest area plans from 20 to 5

Lifestyle and brands don't meet theme

There are Porto Go rest areas located in Bang Pa-in and Samut Sakhon.
There are Porto Go rest areas located in Bang Pa-in and Samut Sakhon.

D-Land Property, the owner of Sriracha Tiger Zoo, has decreased investment for Porto Go lifestyle rest areas projects, planning to open only three outlets over the next two years, down from 20 expected by 2023.

Managing director Suthep Panyasakorn said the cutback is because the company cannot find suitable rest area formats to fit with customers' lifestyles nor new brands to fit their theme.

D-Land Property will trim the investment budget for each rest area to some 300 million baht from 400 million earlier.

Mr Suthep said about 1 billion baht will be used to build three rest areas in upcountry areas during 2020-21.

The company operates two Porto Go rest areas: one in Bang Pa-in, Ayutthaya, and the other in Samut Sakhon, which partially opened in July. Called Porto Go Tha Chin, the rest area covers more than 23 rai in the Bang To Rad subdistrict of Samut Sakhon.

Roadside rest areas have strong business potential, luring D-Land to the retail sector in Samut Sakhon, he said.

According to the company's study, there are some 14.8 million vehicles using major roads each year. On average, about 40,000 vehicles use major roads every day.

The study found most road travellers stop at rest areas for restrooms, refreshment, and food and coffee. The findings show only 30% of road users stop at a petrol station midway to their destination.

Given this business potential and inspired by rest areas in Japan, D-Land Property bought land for a Porto Go rest area in Bang Pa-in in 2017, on the outbound side of Asia Road in Ayutthaya.

The second project, Porto Go Tha Chin, targets people driving south on Rama II Road, supporting an average of 120,000 vehicles each day.

Porto Go Tha Chin will feature commercial areas with 30 shops including restaurants, convenience stores, cafes and a petrol station.

Starbucks and KFC have opened drive-through outlets at Porto Go Tha Chin, while two leading Thai brands will do so soon. Waraporn Salapao plans to open its first drive-through outlet there on Sept 27, with Cha Tra Mue on Oct 10.

Porto Go Tha Chin has partnered with Chevron Thailand to open a petrol station in the new rest area's compound in November.

"We are confident drive-through outlets for these famous brands will attract drivers heading south via Rama II Road," he said.

Constructions for Porto Go Tha Chin are scheduled to be fully completed by early 2020.

D-Land Property reports group revenue of 1.2 billion baht, of which 100 million is from the retail business. With the retail expansion plan, revenue from retail business is expected to reach some 150 million baht in 2021.

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