Thailand’s largest coffee chain felt the bite of low consumer and business confidence in the first quarter, with its 45 net new stores falling short of the average required to achieve its 300 new outlets annually goal
Thailand’s PTT Oil and Retail Business (PTT OR) will have to significantly ramp up expansion of its Café Amazon business if it is to meet its 300 new outlets-a-year target.
The Bangkok-based oil and retail group opened 299 net new Café Amazon outlets in 2024, including 141 during the fourth quarter. However, Thailand’s largest coffee chain opened just 47 net new stores in the first quarter ended 31 March 2025 amid a downturn in Thailand’s GDP growth, falling consumer confidence and lower-than-expected tourism numbers.
The Thai economy grew just 2.5% last year, lagging behind the regional average in East Asia. According to the University of the Thai Chamber of Commerce (UTCC), slow economic growth, alongside proposed 36% US trade tariffs and higher living costs, prompted consumer confidence to fall for a third consecutive month in April 2025. Business confidence also hit a six-month low in April 2025, according to Bank of Thailand figures.
PTT OR currently operates 4,472 Café Amazon stores in Thailand – 52% of which are in PTT OR-owned petrol stations. The group also operates 426 Café Amazon outlets across 10 international markets, with 60% of its international sites in neighbouring Cambodia.
Café Amazon forms part of PTT OR’s Lifestyle reporting segment, which also includes 124 Pacamera Coffee Roasters and Pearly Tea outlets. The segment achieved 1.8% year-on-year first quarter revenue growth to reach BHT 3.9bn ($121.3m), with Café Amazon beverage sales volumes increasing 5% year-on-year to 104 million cups.
However, further highlighting a difficult trading environment during the quarter, sales fell 7.5% from the fourth quarter of 2024, which PTT OR attributed to lower volumes of raw materials, equipment and products sold to franchisees.
In March 2025, PTT OR revealed a THB 7.4bn ($220m) budget to scale its Café Amazon network in Thailand. Its expansion plans come amid heightened competition in the Thai branded coffee shop market, particularly from rival petrol station operator PTG Energy, which is investing heavily in its PunThai coffee business in a bid to reach 2,000 coffee shops by the end of 2025.
International operators have also pinpointed Thailand for expansion, with Australian café chain The Coffee Club announcing new investment in January 2025 to scale its footprint at high-footfall Thai tourist destinations, and Malaysia’s largest and fastest-growing coffee chain, ZUS Coffee, preparing to launch in the country in the second half of 2025.
Additionally, China’s Luckin Coffee won a trademark infringement case in Thailand in March 2025, barring Thailand’s Royal 50R Group from using its brand name and logo. The case, which included Luckin being awarded THB 46m ($1.3m) in damages and legal costs, could pave the way for an official launch in Thailand as the coffee giant steadily scales its international presence.
