BTM (Thailand) Co, the operator of the BreadTalk bakery chain, vows to resume expansion of its bakery business this year after surviving the pandemic and noting the tourism recovery.
Vincent Toh, the company's country manager, said consumers feel less concerned about viral outbreaks and are returning to normal lifestyles as infections decline.
More people are shopping at department stores, while Thailand's tourism sector is on the recovery path, he said.
The company froze its expansion for more than two years because of the prolonged pandemic, but plans to open four new stores this year in Bangkok and Phuket.
The expansion plan will increase the total number of BreadTalk outlets to 63 by year-end, said Mr Toh.
BreadTalk entered Thailand 22 years ago and expanded its business mainly in Bangkok and tourist destinations. The company aims to start opening more BreadTalk branches in provincial areas to reach more local customers this year.
"The bakery industry is predicted to rise further in 2023 as the economy is recovering. Some 80-85% of BreadTalk businesses are in Bangkok and the remaining 15-20% are in upcountry areas. Therefore, there is still potential for the BreakTalk brand to move further in the next 2-3 years," he said.
According to Mr Toh, in addition to launching BreadTalk's proactive online and offline marketing, the company also plans to remodel its existing branches to make them modern and appealing, inviting more consumers to enter the store.
"The competition in Thailand's bakery business is very competitive. Consumers have more choices of bakery products from online offerings and non-bakery chains. Therefore, we not only compete with direct bakery players such as big bakery chains but also small home-based bakery operators and bakery products provided by retail chains."
However, he said the company remains optimistic that 2023 will be a better year for the country's bakery industry which is worth around 10 billion baht a year, adding that the company will maintain BreadTalk as the lifestyle bakery brand by strengthening its product quality, variety and the quality of its people to strengthen its service.
According to Mr Toh, there is also more growth potential for the bakery business in Thailand because local customers consume bakery items as dessert, different from Singaporeans who consume them as their main meal.
In addition, the company will launch new recipes every quarter of this year to generate a new vibe for customers.
"Business of BreadTalk already returned to the pre-crisis level since last year and we expect single-digit growth of BreadTalk sales this year,'' he said.
BreadTalk Group operates food businesses under the BreadTalk bakery, Din Tai Fung, Song Fa and Food Republic brands with 59 branches, four branches, four branches and two branches, respectively.