McDonald’s is set for major growth in Thailand in 2025, investing ฿700 million to open 20 new outlets and refurbish 25 existing ones. Driven by a surge in foreign tourism, the chain targets a 10% revenue boost after earning ฿7.9 billion in 2024.
McDonald’s is reporting a planned expansion in Thailand in the course of 2025. This week, Chief Executive Officer Kittiwan Anuwatesakul outlined plans for 20 new restaurants in addition to the 240 outlets already in place. Significantly, the US fast food chain boss explained that foreign tourism was the key driver in the iconic chain’s success in the kingdom.
McDonald’s is poised to continue its rapid expansion in Thailand in the course of 2025. For instance, it plans to boost revenue by 10%. Previously, the burger chain in Thailand, which has 240 outlets, generated ฿7.9 billion in income for 2024.
The details were revealed this week by Kittiwan Anuwatesakul, chief executive of McThai Co Ltd. She announced a ฿700 million budget to expand McDonald’s stores in the kingdom with 20 new outlets. Furthermore, 25 existing outlets will undergo refurbishment.
McDonald’s targets 10% revenue growth in 2025 despite expected single-digit market expansion
Ms Kittiwan said McThai expects single-digit growth in Thailand’s Quick Service Restaurant (QSR) sector this year. Despite this, the company is targeting a 10% increase in revenue.
The majority of the expansion budget, around 70-80%, will be allocated to opening new stores.
The remaining funds will be used to renovate existing outlets. However, the company has not disclosed the locations of the planned new stores.
Significantly, design is a key focus for McDonald’s Thailand. At length, the new and refurbished outlets will follow three distinct design concepts.
The “Geometry” concept will present a modern, contemporary, and vibrant atmosphere. “Essential Ingredients 2.0” will convey the brand through pop art. The “Cube” concept will express the brand through graphic artwork.
Investment in technology and partnerships aims to boost customer engagement and sales in 2025
In brief, McDonald’s has also invested in technology to enhance customer experience. For instance, in 2024, self-ordering kiosks (SOKs) were installed in all stores nationwide.
The company plans to add more SOKs in 2025 at branches identified as having high potential.
Meanwhile, in 2024, McDonald’s Thailand reached an all-time high in sales. Revenue grew by 10% year-on-year to ฿7.9 billion. Burgers contributed 55% of the total revenue, while fried chicken accounted for 20%.
Ms Kittiwan highlighted the company’s focus on younger consumers. McDonald’s plans to maintain its partnership with “Daou and Offroad,” a Thai boy band popular with Generation Z.
This collaboration reflects the company’s strategy to engage with younger demographics and their fan base.
Tourism and tax schemes drive early 2025 growth as McDonald’s monitors economic conditions closely
Looking ahead, Ms Kittiwan said the Thai QSR market is expected to reach around ฿47 billion in 2025. Growth in the early months of the year has been driven by tourism and the government’s “Easy E-receipt” tax rebate scheme.
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Despite economic challenges, McDonald’s Thailand remains optimistic. Nonethless, the company continues to monitor economic conditions closely.
Certainly, Ms Kittiwan reiterated that she is awell ware the broader QSR sector expects only modest growth. However, McThai is determined to achieve its 10% revenue growth target in 2025.
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Further reading:
Billionaire rivals eye dominance of the Kingdom’s 7-Eleven chain run by the Chearavanont family
Richest man in Thailand says COVID-19 is like a World War, the kingdom could end up a big loser
Drinks giant Thai Beverage to resume expansion with Singapore IPO for Asean regional beer operation
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