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PTG is set to shift towards revenue generation through food and retail businesses. (Photo: PunThai Coffee's facebook)
In the future, gas stations will not only offer pet care services but also freshly brewed coffee. The trend of gas stations diversifying into side businesses is on the rise. Thai government has set a goal for 30% of domestic car production to be electric vehicles by 2030. As gasoline sales face a decline, major gas station operators are actively expanding their investments in non-fuel businesses.
Before the era of EVs fully arrives, Thailand's second-largest energy group, Bangchak Corporation, plans to provide pet care at 20 of its gas stations. Meanwhile, Thailand's third-largest petroleum company, PTG Energy Plc, plans to open 5,000 coffee shops at its gas stations by 2027 as part of its strategy to boost non-fuel business.
Bangchak to open 50 pet shops
In May of this year, Bangchak Corporation and Thailand's entertainment giant, RS Group, announced a collaboration to open pet care shops named "Pet All My Love" within their chain of gas stations. These shops will offer pet products, veterinary consultations, and grooming services. The first branch is set to open at the end of July in bustling Bangkok, with plans to open 20 shops within a year and 50 within three years. The investment is estimated to range from 100 to 200 million Thai baht (about 2.7 million to 5.4 million USD)
Currently, Bangchak Corporation operates various non-fuel businesses within its gas stations, including coffee shops called "Intanin," convenience stores, restaurants, car care shops, and EV charging stations, showcasing a diversified approach to gas station operations.
Moreover, Bangchak continues to expand its gas station network. Bangchak Corporation's CEO, Chaiwat Kovavisarach, stated that they plan to increase the number of gas stations from 2,200 to 2,500 by 2030 and to increase investment in non-fuel businesses.
PTG targets 50% non-fuel revenue
In addition to pet care, the petroleum giant also eyes the "black gold" business opportunity. Thailand's third-largest petroleum company, PTG, is adjusting its business investment portfolio to operate chain coffee shops within gas stations and has set a target to increase non-fuel business revenue to 50% over the next three years.
Since 2012, PTG has been operating coffee shops named "Pun Thai" in its gas stations. As of April, it has reached 1,000 stores, with plans to add 400 more within the year. It is expected that starting from 2025, the coffee shop will add 1,000 stores per year, reaching 5,000 by 2027, with over 50% of the new chain coffee shops being attached to gas stations nationwide, and the remainder are in commercial facilities.
Currently, non-fuel businesses contribute over 20% of PTG's gross profit, with a projected increase to 50% by 2025. PTG is set to shift towards revenue generation through food and retail businesses, with petroleum investments currently occupying 80% and expected to decrease to 50% in the future.
As the government aims to increase the production proportion of EVs to 30% by 2030, heralding the advent of the EV era, petroleum companies must increase investment in non-fuel businesses to develop other profit channels. The future of gas stations will be redefined as gasoline sales decline.
Source: Bangkok Post, Nikkei Asia, RS Group
