PTT and Cafe Amazon – an Inseparable Duo
When we are on the road and thinking of making a stop at a gas station to rest, PTT is most likely to be the first option for all travellers. We can fill up the fuel there, find everything in a 7/11 convenience store, and more importantly, a good taste of coffee at Cafe Amazon.
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Cafe Amazon is one of PTT’s essential businesses. PTT has set a target for the non-oil business and oil business to be equal at 50:50 ratio in earning within 4-5 years, while the current ratio is 30:70. By that time, Cafe Amazon will be able to produce 60% of PTT’s revenue in non-oil business.
 
Up until now, Cafe Amazon has grown at a fast pace with a constant increase in revenue each year.
2014 – Cafe Amazon earned 3.5 billion baht in revenue.
2015 – Cafe Amazon earned 5.4 billion baht (+48.14%) in revenue.
2016 – Cafe Amazon earned 8 billion baht (+48.14%) in revenue.
2017 – Cafe Amazon earned 10.25 billion baht (+28%) in revenue.
 
In 2018, Cafe Amazon’s aim is to grow 25% to reach 12.82 billion baht in revenue, and to establish more cafes to make it 2,300 shops in total, and 4,000 cafes in 2022.
As of August 31, 2018, there are a total of 2,260 cafes in Thailand, divided into 1,579 cafes in gas stations and 682 cafes that are stand alone or located in shopping malls. Meanwhile, there are 135-140 cafes scattered abroad in Asia. Out of all the cafes, PTT only owns about 10% of them or around 230 cafes, while the rest are franchises.
 
Did you know that Cafe Amazon’s market share has gone beyond the world-renowned cafe, Starbucks? It started in 2015 when Starbucks earned 4,998 million baht in revenue, while Cafe Amazon earned 5,400 million baht. Even though Starbucks hiked to 6,051 million baht in 2016, Cafe Amazon widened the gap with its 7,006 million baht in revenue. Surprisingly, Starbucks only aims for 8,400 million baht in 2018, while Cafe Amazon has set its target at 12,820 million baht!
 
PTT also furthers Cafe Amazon’s business by investing all the way from the starting point to the finishing line of its business. PTT has invested on building a coffee roasting factory and producing new products such as healthy drinks, instant flavors, bakery products, as well as distribution centers for logistical efficiency.
PTT said that the growth of Cafe Amazon will also support Thai farmers as the coffees used in the cafe are from our own lands and soils, not to mention other products from SME companies that are displayed in the cafe.
 
Nowadays, holding onto only one business may hurt the company or that certain brand. In order to avoid that, a horizontal integration strategy for more profits is very essential, while the revenue is not going anywhere as it is a 65% state-owned enterprise.
 
As for the statement that Mr. Korn Chatikavanij said regarding Cafe Amazon, which is considered a state-owned enterprise, is competing with a private company’s business. We can see the same situation going on between other businesses. Normally, the state-owned enterprise would not be able to compete with the private company’s business. Just look at Thailand Post and Kerry Express as an example that Kerry Express is snatching Thailand Post’s customers one by one.
This is because consumers need a variety of options, so that they can pick out the best for themselves. 
 