Bangchak Corporation Plc (BCP), a mostly state-owned energy company, plans to work with the Puff & Pie Bakery House business of Thai Airways International Plc (THAI) to add pies and rolls to its Inthanin cafes.
The move is part of a partnering strategy BCP is using for non-oil business development.
BCP, which operates oil and non-oil businesses through its wholly-owned Bangchak Retail Co, has increasingly focused on non-oil businesses over the past decade to diversify from tough competition in the retail oil market.
The company plans to sell pastries at its Inthanin coffee houses and through a takeaway service, said Seri Anupantanan, managing director of Bangchak Retail Co, during a recent online signing of the memorandum of understanding with THAI.
Inthanin coffee shops are best known for their cocoa drinks, while Puff & Pie's bakeries are famous for their pineapple pies and chicken rolls.
BCP plans to initially add the Puff & Pie menu to 15 shops, then to 50 by the end of this year, and then 100 countrywide in 2022.
There is a total of 711 Inthanin coffee shops, which are located at BCP's petrol stations and as stand-alone shops, said Mr Seri.
"Partnering with THAI will enhance and synergise the businesses of the two firms by mixing together catering and coffee services," he said.
BCP and THAI said they would continue to develop new products and services for customers.
"Our business synergy during the recession aims to maintain good services," said Samacha Srithongsook, managing director of THAI's catering department.
The two companies successfully ran a trial of their new service last year before forging further cooperation.
During the pandemic, BCP has also focused on branching out with more coffee kiosks to serve as pick-up points for delivery service.
In the second quarter this year, BCP's coffee sales rose by 7%, while its oil sales fell by 5% to 1.11 billion litres per month from the first quarter, mainly attributed to the escalating Covid-19 situation.