SNP growth plan unfazed by Covid
Various strategies seek to boost sales in second half
Although the restaurant business is reeling from the prolonged outbreak, S&P Syndicate Plc (SNP), the operator of S&P restaurants, bakery and coffee shops, remains committed to launching various strategies to boost sales in the second half of this year.
Arth Prakhunhungsit, the company’s chief operating officer, said S&P plans to double its delivery sales via the snp1344 application and offline business.
The company also plans to open 20 Delta stores, which are bakery convenience shops with a kitchen, at community malls, hypermarkets and petrol stations.
Each shop requires an investment of 1.5-3 million baht for a size of more than 90 square metres.
The company expects 1.2-1.8 million baht in sales from each Delta store per month.
It targets expanding the delivery channel to fully cover Bangkok and wants to increase delivery points for upcountry stores.
In the first half this year, sales from delivery rose to 15% of SNP’s total sales, up from 12% in the same period of the previous year.
The remaining 85% belonged to takeaway business and dine-in, which accounted for 73% and 12%, respectively.
In addition, the company plans to strengthen its bakery shop image and promote signature and seasonal products on different occasions.
For the restaurant business, SNP wants to grow sales by strengthening single dishes and upgrading key ingredients as well as the presentation of signature menu dishes. It also wants to relaunch new heat-and-serve signature breakfast items.
“We plan to shift key occasion-based and festive products to daily consumption items and launch a new bakery mart,” Mr Arth said.
“The company also aims to grow its customer base in the second half this year by revamping bakery product displays and launching a new value-for-money bakery and beverage product range.”
For its retail and food service business, the company plans to grow sales by developing joint businesses with all key retail partners, revamping displays and increasing shelf space. It also wants to drive food service through food chains and original equipment manufacturers, he said.
“We received a big wake-up call in April this year and learned from the first wave last year. Our business can be sustainable if we are ready to change our mindset quickly to adapt during the pandemic,” said chief executive Vitoon Sila-on.
With good diversification of sales channels and cost control, S&P revenue in the second quarter of this year was 1.05 billion baht, up 9% over the same period last year, with a net profit of 44 million baht against a net loss of 51 million in the second quarter of 2020.
For the first half, revenue fell to 2.21 billion baht from 2.43 billion in the same period last year. Net profit increased to 123 million baht for the first half compared with a net loss of 78 million in the same period last year.
The decline in revenue was attributed to the restaurant business flopping during the pandemic, which caused lower traffic for both dine-in and takeaway channels. Overseas revenue also dropped by 50%, primarily due to multiple lockdowns.