McThai Co, the operator of McDonald's restaurants, has upgraded its investment plan, increasing spending to 300 million baht this year, up from 200 million in its earlier plan, after witnessing a recovery in consumption and the economy.
Chief executive Kittiwan Anuwatesakul said the funds would be used to open 10-15 new restaurants, bringing the total number of outlets to 237-242 by the end of this year. The new branches to be opened this year would be based at key strategic locations where customer demand is robust.
Some of the budget would also be used to renovate more than 30 existing restaurants throughout the country this year. All of the new restaurants would feature the company's latest store design concept, focusing on sustainability and simplicity to make customers feel relaxed, warm and modern and the brand more accessible, cashing in on the sustainability trend.
Digital facilities would also be added to respond to the needs of Gen Z customers, according to Ms Kittiwan.
Last year, McThai operated 227 McDonald's restaurants, which comprised 83 drive-thrus and 27 outlets based at petrol stations. The remaining branches are located at retail malls, airports, or are shop fronts.
Ms Kittiwan said the situation regarding the quick-service restaurant business has witnessed positive signs since last year's fourth quarter. The momentum persisted during the first two months of this year, with more people returning to restaurants, and sales in tourist destinations improving significantly.
Sales at most restaurants located at tourist destinations are already back to the level recorded before the pandemic, she said, adding that spending per visit has also improved while inbound and outbound travelling is very active. More than 2 million foreign tourists visited Thailand in January 2023.
According to Krungthai Compass, a research unit under Krungthai Bank, foreign tourist arrivals this year are expected to tally 22.5 million, up from 10.2 million in 2022. Of the total, Krungthai Compass anticipates 4.8 million visitors will be Chinese nationals.
In response to the recovery in the tourism sector, the company recently opened its latest branch at Suvarnabhumi airport.
This is the fourth McDonald's outlet to open at Suvarnabhumi airport, providing a variety of dishes and premium coffee as well as self-ordering kiosks and a full range of services to create the best possible customer experience for local consumers and foreign visitors.
In addition to the new restaurants, the company would also accelerate the restoration of its existing restaurants located by tourist destinations such as the Ratchadamri branch of McDonald's, where the number of foreign tourists has reportedly increased.
In a related development, McThai rolled out new fried chicken dishes at all McDonald's branches countrywide on March 2 to provide consumers with another alternative and encourage fans of fried chicken to visit its restaurants.
"The new McDonald's fried chicken dishes are an initiative of McDonald's in Thailand. These dishes will help increase the frequency of customers visiting our stores and broaden our customer base," Ms Kittiwan said.
In light of these plans, the company expects its sales to grow by 20% this year.