Thailand
Thailand: MBK to buy stakes in street food brands
Shopping centre operator MBK Plc intends to buy stakes in Thai street food brands as part of its efforts to reduce business risks and raise new income.
Somphol Tripopnart, MBK’s managing director of shopping centre business, said the company is now in talks with 4-5 popular street food brands in Bangkok, Chiang Mai and Chachoengsao to buy 51% stakes in these companies.
MBK aims to close at least two such business deals next year.
“The company’s board [of directors] just approved this idea, and the company wants food to be the new business pillar for MBK,” Mr Somphol said, attributing the company’s expansion into the food industry to its promising opportunities and continuous growth during the Covid-19 pandemic.
In addition, Mr Somphol said MBK intends to develop new retail stores on seven rai of land at Charan Sanitwong Road, near the Tha Phra intersection, after it established a strong foothold at The Nine Center community mall in Tiwanon, Nonthaburi province.
Mr Somphol says that before the Covid-19 crisis, MBK drew about 120,000 visitors per day.
According to Mr Somphol, despite the country’s reopening on Nov 1, the company’s focus is still on local customers since the number of international tourists visiting Thailand is not yet large enough, and most of them are in any case free independent travellers who are fond of nature rather than going shopping.
Roughly 80,000 people visit MBK each day, with the figure expected to rise to 90,000 visitors next year.
Before the Covid-19 crisis, MBK drew about 120,000 visitors per day.
“Customers’ spending power at MBK has improved but has yet to return to pre-pandemic levels,” Mr Somphol said.
In a related development, Mr Somphol said MBK is scheduled to launch a store that has been refurbished both internally and externally on Dec 27, and welcomes the arrival of new tenants, including Japanese retail store Don Don Donki, restaurant chains, and other forms of nightlife entertainment.
Amid the pandemic, the company has changed its retail space charging policy for tenants from rental fees to gross profit shares, at a rate of 5-35% of monthly sales.
With this scheme, the occupancy rate at MBK stands at 70% and is expected to increase to 96% in the second quarter of next year.
Source: https://www.bangkokpost.com/business/2232623/mbk-to-buy-stakes-in-street-food-brands