Snack-maker UM to open more stores at PTT stations

       UM Tridaughter Sweet (UM), the maker and franchiser of Kanom Baan Ayakarn Thai Cake snacks, has opted to expand its network of outlets to PTT petrol stations, rather than shopping malls, in a bid to tap more families.
       UM director Nuttaya Sawatpoon said the company has 23 Kanom Baan Ayakarn shops in shopping malls, which should be enough to serve that market. It has decided to focus more on opening shops in new types of locations. Petrol stations are seen as a way of expanding into the family market.
       "Consumers in the family segment shop at convenience stores, bakery shops and coffee shops when the family vehicle is filled up at the petrol station," Nuttaya said. Moreover, the rents at petrol stations are not high, she said.Kanom Baan Ayakarn already has three shops at PTT petrol stations. Newer PTT-based outlets would be smaller than these, however.
       The company believes the expansion into PTT's petrol stations will boost its revenue to Bt150 million next year, from an expected Bt100 million this year.
       The sweet-maker is following the example of Siam Hands, the maker of Tangmo-brand apparel, which recently began opening shops at PTT petrol stations, believing the network of 1,400 stations nationwide, and the purchasing power of its customers, could help boost its profits.
       Nuttaya said UM will open five shops in the fourth quarter of this year, four of which will be located at PTT stations. The plan is expected to require investment of at least Bt500,000 per PTT shop.
       The fifth shop is a franchise in Hat Yai, Songkhla.
       Nuttaya said the five new shops are expected to offset a decline in sales in the second quarter.
       "We need to be aggressive in opening new shops, as the domestic economy is improving. This year the company targets sales of Bt100 million, up from Bt97 million last year," she said. The company will have 38 shops by the end of this year, up from 33 at present. Five of the shops are run by franchisees. The rest are UM's own shops.
       Nuttaya said the company plans to open at least 10 new franchise stores next year.
       Expansion through franchisees is expected to grow, she said, adding that the company is in negotiations with investors in Nakhon Pathom, Ayutthaya and Suphan Buri.