Large Amazon Coffee Expansion

Café Amazon, Thailand’s famous coffee chain brand owned by the country’s largest energy firm PTT Plc., is planning a mega expansion in Cambodia with 120 branches throughout the Kingdom by 2021.
 
This was revealed yesterday at a franchise signing ceremony, where 19 investors reached an agreement to set up 120 Café Amazon branches nationwide. There are already 17 PTT-owned Café Amazon branches in Cambodia, with 18 more planned this year.
 
“Providing the Café Amazon franchise to local investors boosts and promotes the coffee brand in Cambodia. We hope to set up another 120 branches, in the country, in the next six years,” said Suthon Choothian, managing director of PTT Cambodia.
 
There is a growing trend among younger Cambodians to drink coffee in fancy cafes, and it is this generation that Café Amazon wants to target.
 
“These are the young Cambodians that Café Amazon wants to reach out to ‒ those who come to cafes to hangout and want variety in their coffee flavors,” said Mr. Suthon.
 
In Cambodia, Café Amazon outlets are found at PTT petrol stations and the first outlet was set up in 2013.
 
“Our Café Amazon outlets sell an average of 350 cups of coffee a day,” said Mr. Suthon.
 
Mr. Suthon did not reveal the amount needed to set up a Café Amazon franchise but an investor, who did not want to be named, said a minimum of $16,000 had to be put down as the franchise fee.
 
Tep Kolap, who owns a Café Amazon franchise, said that she stepped into the business because there was a huge market to be tapped among the younger generation.
 
“The price of coffee in Café Amazon is competitive and for that reason, I can make money,” said Ms. Kolap.
 
Ms. Kolap’s Café Amazon sells coffee to university students and stressed that it was its price and taste that makes it popular with the younger generation.
 
“I believe that each coffee brand has its special point. Café Amazon’s taste is popular among Cambodians, particularly young people. But what’s special is its price. It is affordable to all,” she said.
 
Ms. Kolap said she sold at least 1,000 cups of coffee a day to university students.
 
Yoeung Sarath, operations manager of the British multinational Costa Coffee, which currently has five branches in Phnom Penh and two in Siem Reap province, said coffee shops which run under franchises reflect the increase of the coffee chain market in Cambodia.