The Pizza Company, a subsidiary of Minor Food Group Plc, plans to invest over 300 million baht this year in opening new branches and renovating existing ones.
A tough macroeconomic condition, higher costs, and intense business competition could pose challenges to the restaurant industry this year, said Anupon Nitiyanant, chief operating officer at Minor Food Group.
The government raised the daily minimum wage on Jan 1, with the increases ranging from 7 to 55 baht.
"We have to raise our daily wage even higher than the official minimum wage to retain staff," said Mr Anupon.
Moreover, the entire restaurant industry is also facing rising costs for raw materials such as dairy products and fruits.
To tackle these challenges, the company focuses on cost management and leverages high purchasing volumes to control expenses, Mr Anupon noted.
The industry is expected to see fierce competition this year with new entrants into the market, including several Chinese restaurant operators, he said.
Patt Pongwittayapipat, general manager of The Pizza Company, said the company plans to open 20 new stores this year including standalone locations and branches in hypermarkets, with an investment of 200 million baht.
The company currently operates 430 outlets across the country and added 10 new stores in 2024, Mr Patt said.
Around 60% of the new stores would be located in provincial areas, one of which will be in Mae Hong Son, marking the first branch of The Pizza Company in that province, he said.
Currently, delivery orders account for about 50% of The Pizza Company's sales, while dine-in and takeaway contribute roughly 30% and 20%, respectively.
Mr Patt noted that the new stores will also enhance delivery efficiency by serving as additional distribution points.
He added that the company intends to renovate 80 to 100 existing stores this year, with a total budget of over 100 million baht.
Moreover, the company plans to allocate 300 million baht for marketing activities.
The ongoing recovery in tourism is expected to boost the company's sales in tourist destinations, said Mr Patt.
The company has launched a Buy One Get One Plus campaign, which commences on Thursday and continues through April 20.
Customers can enjoy two pizzas starting from 279 baht along with perks such as free delivery from Thursday to March 12 and April 1 to April 20.
Mr Patt said The Pizza Company has targeted its sales to grow over 10% this year.