Outbreak brings Thai franchise business down by 30%

[webfact]

Outbreak brings Thai franchise business down by 30%

By The Nation

 

Poonpong Naiyanapakorn, DBD's deputy director-general

 

The Covid-19 outbreak has brought the value of Thai franchise businesses worth Bt300 billion down by Bt90 billion or 30 per cent, the Department of Business Development (DBD) said.

 

Over the past four months, the outbreak has had a 100-per-cent impact on hotel, spa and education franchises, 70 to 80 per cent on food and beverage franchises and 30 to 50 per cent on retail, convenience store and pharmacy franchises.

 

Poonpong Naiyanapakorn, the department's deputy director-general, said franchises’ revenue and cash flow had dropped due to the outbreak, while operators were forced to bear costs and expenses, such as rents, loan repayments and employees’ wages, adding that many franchises are shifting to online marketplaces and adding a cashless payment system.

 

“Hence, the department has come up with a plan to help franchises recover by supporting them to create careers, generate income and adapt their businesses so they are in line with the new normal,” he said. “The department has also cooperated with financial institutions to issue measures to boost franchises’ liquidity, such as reducing interest, postponing debt repayment and granting loans.”

 

He added that the department has cooperated with the Export-Import Bank of Thailand, Kasikorn Bank, Siam Commercial Bank, and Franchise and Licence Association to give out the Thailand Franchise Award 2020 (TFA 2020) in a bid to encourage Thai franchises to boost their potential and meet international standards under the new normal.

 

“Franchises can register to participate in this event from now until August 10 this year,” he added.

 

Source: https://www.nationthailand.com/news/30391432

 

-- © Copyright The Nation Thailand 2020-07-16

 

- Whatever you're going through, the Samaritans are here for you

- Follow Thaivisa on LINE for breaking COVID-19 updates

[Cake Monster]

A reduction in value of 30% on Thai Franchise Business,s is a huge drop.

So many Businesses in Thailand are franchisee business,s.

From the small Coffee Booths in the Soi, to the Chicken 5 * franchise, to the larger Franchises such as KFC and Mc Donalds. Etc Etc Etc

This can only mean that the People of Thailand are spending 30% less in these outlets, and will be unable to drag the Thai Economy out of the Covid mire.

[steven100]

Same .... same.... same everywhere else, this is not happening only in Thailand, it has devalued franchises all over the world.  Economies are suffering everywhere, I would say the most effected are the small to medium businesses and I expect at least 30% if not more to close and not reopen.

The Department of Business Development can do all they like to try to get the economy back but at the end of the day Thailand relies heavily on tourists and if they stop coming ( which is very much happening )  then your new numbers will just be the norm. 

[Grumpy John]

If landlords don't give some sort of discount on the rent and master franchisers don't reduce their percentages on turnover then yes,  30%  or more will disappear.

[RichardColeman]

4 hours ago, steven100 said:

Same .... same.... same everywhere else, this is not happening only in Thailand, it has devalued franchises all over the world.  Economies are suffering everywhere, I would say the most effected are the small to medium businesses and I expect at least 30% if not more to close and not reopen.

The difference is that in other countries they are not as reliant on tourists to support those 30%