Coffee and restaurant/ The Coffee Club

Editorial staff

The Coffee Club, under Minor Foods Group, turns its operation to profit for the first time in the past 5 years.

Business of The Coffee Club lost 100 million in 2021 and 30 million baht in 2022 and turns to profit in 2023 for the first time.

Nongchanok Stananonth, general manager of The Coffee Club under the operation of The Minor Food Group Plc, said that the company will resume its active expansion this year with new strategies to make The Coffee Club's business grow continuously with minimal risk.

Nongchanok Stananonth

Mrs Nongchanok said that the company will reach more Thai customers to increase its sales opportunity for the whole year. Also, it will help grow its business with profitability and sustain sales each month.

After spending time improving its business foundation in the past 2-3 years, The Coffee Club will resume its aggressive business expansion in every aspect, with a plan to open 5 new branches this year with a total investment of 30 million baht.

Under its plan, it will put more focus to open 4 small sizes of The Coffee Club and 1 branch with regular size. Its small size requires an area of 70-100 square meters, with opening in community malls with 30 seats, requiring an investment of 3-5 million baht per branch. It will be opened at offices, condominiums, near homes, or even alleys with sufficient customer density.

The small branch focuses on beverages, coffee, non-coffee, food, grab & go, catering and take away. As for the regular branch, it will use an area of approximately 180-200 square meters with an investment of 8-10 million baht, offering 80 seats and opening in tourist destinations such as Phuket and Pattaya.

New products to be launched soon

According to its investment plan, The Coffee Club branch will have a total of 45, including 44 branches in Thailand and 1 branch in Laos.

“Opening a small branch gives more opportunities to open The Coffee Club nearer to customers and reach more Thai customers especially teenagers, working people and families. We believe that business of The Coffee Club can still grow if we make our branches more easily accessible to customers. Opening a small The Coffee Club shop reinforces our status as a Neighborhood Café for customers. In addition to allowing us to talk with customers closely. It will also help increase the proportion of Thai customers to 50% within 5 years from 35% last year,” Mrs Nongchanok said.

The company expects The Coffee Club's revenue to grow approximately 10% to more than 800 million baht this year with several times of profit growth, from 1 million baht last year.

In 2023, The Coffee Club earned over 700 million baht in revenue, up 32% from 2022 as a result of implementing various marketing strategies, including responding to customer needs through developing new menus such as Thai tea and Pang Yen Frappe, a new product developed from Thai insiders who are now increasingly consuming Thai tea.

The Coffee Club has been opened in Thailand for 14 years. In the beginning, the focus was 90% foreigners, so the brand was not yet well-known among Thais. In addition, the Covid-19 outbreak caused the company to adjust its strategy to focus more on local people, with an introduction of affordable quality menus in order to access more local customers. It has also collaborates with partners in various industries such as mobile phones and credit cards for a wider customer base. To date, 190,000 customers are Thai and expects to increase to 250,000 by the end of this year.