Filling stomachs, not cars

The next post on the checklist for PTT Oil and Retail Business Plc (OR), which operates the Cafe Amazon franchise, might surprise rivals who are venturing into non-oil ventures.

OR is moving forward with a “Beyond Fuel” concept, making its agrifood business and the development of charging stations for electric vehicles (EVs) a priority to adapt to new lifestyles of customers.

Dek pam, or the oil filling staff, will no longer be the first people to greet motorists driving through their gas stations.

“Where are the oil distributors? Visitors may say, but Beyond Fuel wants to ditch the conventional image of gas stations.

Instead of adding cafes, restaurants, stores and convenience stores to gas stations, oil dispensers will instead become an “extra facility” within the confines of a catering establishment, according to OR.

The company believes this is the way to go as petroleum retailers agree that stations with petroleum as the only product will become a thing of the past.

NO OIL DISPENSERS?

OR is preparing to intrigue motorists on Vibhavadi Rangsit Road with a redesigned PTT station.

The new design is expected to be completed around the middle of this year.

Once the concept has been tested, OR plans to bring it to life by building an unconventional gas station on this busy road.

The company insists it’s not just a rebranding of an oil filling station, similar to the moves of other oil retailers.

Chevron Thailand, which operates gas stations under the Caltex brand, renovated and painted its gas stations in a bright red tone, with a contactless payment system using the company’s Smart Design Pump.

OU wants food and drink as well as other non-oil stores in front of stations, moving the fuel service area deep in.

“We want non-oil zone products and services to create a window-shopping atmosphere,” said Jiraphon Kawswat, President and CEO of OR.

Gasoline will not be the main purchase for visitors to PTT stations, she said.

The company saw more than 60% of its daily average of 3 million customers using non-oil services, while only 40% refueled their cars.

“Motorists only take 3-4 minutes to fill up with oil and pay their bills, but they spend an average of 15-20 minutes in total at our gas stations. This data means that we can take advantage of other business opportunities, ”Ms. Jiraphon said.

The volume of customers and the extensive network of PTT service stations are critical to its non-oil business.

“The next job this year is to expand the number of PTT stations by 192 branches, against a total of 2,346 branches in Thailand, Myanmar, Laos, Cambodia and the Philippines,” she said.

THE COFFEE MANIA

Along with new service stations, OR wants to continue expanding its Cafe Amazon empire and make its other Pacamara coffee brand more recognizable among coffee lovers who demand a high quality aromatic brew.

OR spent 172 million baht to buy a 65% stake in Peaberry Thailand Co, which manufactures and distributes coffee beans and equipment as well as coffees under the Pacamara brand.

Peaberry was one of OR’s coffee suppliers. The company also maintains coffee machines for the operating room.

Acquiring shares not only helps OR better manage its coffee operating costs, but also allows OR to access the high-end market, Ms. Jiraphon said.

Pacamara is positioning itself as OR’s specialty coffee and the company plans to expand its branches over the next two years.

“Thais consume 1.5 kilograms of coffee per person per year, compared to 3 kg consumed by Europeans and Japanese. There is room to develop this activity,” she said.

Other oil retailers are also looking for opportunities in this market and have launched various brands of coffee to attract customers.

PTG Energy Plc, Thailand’s second largest fuel trader by sales volume, is stepping up efforts to strengthen its two brands of coffee and other non-oil businesses.

PTG President Pitak Ratchakitprakarn said the company is testing its new food and drink menus, which include cannabis and hemp-based ingredients.

They will be offered at its Punthai Coffee Shop branch at PTG’s headquarters in Bangkok, he said.

The company also plans to increase the number of Punthai Coffee, Coffee World and Max Mart convenience stores, as well as Autobacs car service centers to 870 from 756 last year.

Bangchak Corporation Plc (BCP), a majority state-owned energy company, plans to increase its Inthanin coffees in overseas markets once the Covid-19 pandemic subsides.

Somchai Tejavanija, chief marketing officer and executive vice president of BCP, said earlier that the company is starting with 3-5 new cafes in Laos.

While Cafe Amazon features a leafy design, Inthanin Coffee claims to be eco-friendly.

BCP operates a total of 690 outlets in Thailand and eight overseas.

Last year, Chevron Thailand introduced Chaodoi coffee, along with Somtum Jadjan (strong-tasting papaya salad) and Moom Gapao (basil corner), to around 100 service stations.

OR plans to expand Cafe Amazon outlets across Asia, from Oman to Japan, adding 552 branches, up from 3,575 total branches, according to Jiraphon.

FOOD REFILL

As more motorists prefer their stomachs to their cars, providing them with quality food services will help petroleum retailers attract more customers.

OR decided to buy a 20% stake worth more than 400 million baht in organic catering company Ohkajhu as part of its merger and acquisition strategy.

Ohkajhu restaurants, which feature salads as iconic dishes, are very popular among residents of Chiang Mai and Bangkok. Visitors often wait hours for a table.

There are 14 Ohkajhu restaurants in the two provinces.

OU plans to add Ohkajhu branches in PTT stations to better serve organic vegetable lovers.

Motorists who enjoy other food brands can order from Texas Chicken and Hua Seng Hong Dim Sum at OR stations.

To further diversify its non-oil business, OR is developing a central bakery and mixed drink powder factory, as well as a merchandise distribution center for Cafe Amazon in the Wang Noi district of Ayutthaya, Jiraphon said.

The new company is expected to start operations in the third quarter of this year.

According to OR, new non-oil companies are expected to account for 15% of its 74 billion baht of allocated capital spending for 2021-2025.

FUTURE FUEL

Many petroleum retailers are investing in electric vehicle charging facilities, in line with government initiatives to promote the technology as the country tries to become more environmentally conscious.

OR provides a recharging service for battery-powered vehicles at its PTT stations.

It plans to increase charging points nationwide from 30 to 100 units by the end of this year, to reach 300 in 2022.

BCP installed 56 EV chargers as part of its commercial trial.

The company plans to increase the number of chargers to 150, as well as expand its battery exchange stations.

The latter service aims to facilitate the riders of electric motorcycles who have a low battery. They can search for stations on their cell phones and easily replace their batteries with fully charged batteries in minutes.

Petroleum retailers clearly envision a future where the term pam namnam, that is, gas stations, has disappeared, with a widespread charging infrastructure for electric vehicles in place and motorists determining their stops based on cafes and restaurants.