PTT Oil and Retail Business (PTTOR) plans to launch new non-oil businesses in 2020 through franchises domestically and abroad, following the tactics of Cafe Amazon, the company's coffee shop brand.
Jiraporn Kaosawad, president and chief executive, said the non-oil segment of PTTOR encompasses the franchise rights to food and beverage chains and convenience stores, including Jiffy, Texas Chicken, Hua Seng Hong Dim Sum and Daddy Dough.
"The company is setting up a new franchise model that will be introduced next year," she said.
In early November, PTTOR announced the relaunch of a bubble milk tea franchise under the Pearly Tea brand in early 2020.
The Pearly Tea franchise has 25 kiosks at present.
PTTOR operates food and beverage business through subsidiary PTT Retail Management (PTTRM), which also operates Jiffy convenience stores.
Anake Buanamuang, managing director of PTTRM, said the new franchise requires less investment than Cafe Amazon.
Each franchisee will be required to invest 800,000 to 1.1 million baht per shop. Cafe Amazon franchises require 2-7 million baht per shop, Mr Anake said.
Ms Jiraporn said the retail fuel business in Thailand has fierce competition.
According to a report by the Energy Business Department, PTTOR remains the market leader in petrol stations with a 38% share.
"The arrival of electric vehicles is disrupting the future of the retail oil business," Ms Jiraporn said.
The non-oil business generates higher margins than the oil segment. "Margins for the non-oil segment are in the double digits, while the oil business has single-digit margins," she said.
Cafe Amazon has expanded to roughly 3,200 branches across Asia, including outlets in Oman, Singapore and Japan.
Launched in 2001, the coffee shop brand has 2.4 million visitors a year at branches.
PTTOR prioritised expansion of petrol stations in the past before increasing its non-oil business such as food and beverage, convenience stores and car care services.
PTTOR is operating PTT Lubricants and PTT Fit Auto as non-oil segments at petrol stations.
Ms Jiraporn said PTTOR is committed to listing on the stock market.
"The company is waiting for approvals from two ministries -- Finance and Energy -- as parent company PTT is a state enterprise," she said.