Thai Energy Firm Dives Into Fried-Chicken Business

With crude-oil prices continuing to weaken, Thailand’s largest energy firm is diversifying and diving into the American QSR business. PTT Plc. has signed a franchise deal with U.S.-based Texas Chicken. PTT plans to invest 1.5 billion baht (US$44.2 million) to open at least 70 Texas Chicken branches over the next five years. The first restaurant will open in November.

The franchise is PTT’s first major investment into Thailand’s US$884 million QSR market; the company currently operates Café Amazon and Daddy Dough coffee shops. PTT has signaled it plans to sign more foodservice franchise deals in a bid to boost its profits from non-oil businesses from the current 20% to upward of half of its overall profits over the next five years.

Texas Chicken will compete with KFC Thailand, whose parent, Yum! Brands, recently announced plans to grow its footprint in Thailand from about 530-800 stores by 2020. Texas Chicken, headquartered in San Francisco, has more than 1,700 locations worldwide in 22 countries, with system sales approaching US$1.2 billion.