According to inside information, a Thai KFC franchisee is planning on dropping its USD200 million (6.3 billion Thai baht) fast-food chain investment.
Restaurants Development Co., a Bangkok-based company exploring the prospective sale, owns at least 200 KFC chains around Thailand, also employs around 4,000 workers throughout various branches nationally.
The fast-food franchisee is reported to be working with a business advisor to discuss its possible sale.
Restaurants Development, as of this writing, has yet to comment on the possible sale account.
According to reports, should the deal transpire, the buyer will be joining various leading companies that operate KFC franchises throughout Thailand.
The leading operators of KFC restaurants in Thailand are the retail conglomerate Central Group of Companies Co., which has 275 KFC branches nationwide; and Thai Beverage Pcl., which currently has around 240 KFC franchises throughout the country.
The inside person of Restaurants Development didn’t clarify if the sale was due to covid-19’s impact on the economy.
While Thailand is seen as a model country in combating the coronavirus, with more than 40 days without a recorded local transmission of the virus, the country’s economic future remains bleak.
According to the Bank of Thailand, the kingdom’s GDP is predicted to contract by at least 8.1 percent this year.
The estimated economic contraction is considered the worst among the leading economies in Asia.
The forecast dictated the 8.1 percent drop as Thailand’s biggest GDP downfall in the nation’s history, overshadowing the plunge the kingdom experienced during the Asian financial crisis 20 years ago.
However, economists survey that the kingdom is slated at a 4 percent economic rebound in 2021, albeit a weaker comeback when compared to the financial losses.
Analysts and experts in finance are predicting deep contractions for Thailand’s economy this year due to hits in the various business sectors in the nation.