Franchise operators are urging the government to provide low-interest loans to support business expansion amid challenging economic conditions.
Chanoknun Panyanithi, marketing manager of Citi Foods (Thailand) Co Ltd, the franchisor of Popcorn Land, which has sold more than 100 popcorn booth franchises, told the Bangkok Post small and medium-sized enterprises (SMEs) need access to low-interest financing to drive business development, expand operations and enhance marketing initiatives.
SMEs need to secure funding not only to grow their businesses, but also to upgrade their standards for international competitiveness, as obtaining certifications often comes with costs, she noted.
"The government may need to consider providing SMEs with access to low-interest financing to help them elevate their standards to international levels and foster business growth," said Katesaraporn Rodthong, founder of Citi Foods.
Jumnian Buranasuk, sales manager at Wararat Food's Ltd Partnership, a franchisor of the Wararat Meatball shop, told the Bangkok Post the government should reconsider its taxation policy to better support local businesses.
She said this does not mean exempting SMEs from tax, but the government should set up a tax rate structure tailored for Thai business owners.
Ms Jumnian suggested lower tax rates for local entrepreneurs as it would directly support business growth.
In addition, a sluggish economy is likely to deter new franchise operators from entering the market in the near term, she noted.
However, Ms Jumnian expects existing business operators to continue expanding by introducing new product lines.
Despite the economic downturn, she said she is optimistic individuals seeking to start a franchise still view it as a path to business ownership.
However, franchise buyers may scale down their initial investments. For example, individuals who previously planned to invest in a 50,000-baht package are now opting for 30,000-baht options.
The Wararat Meatball brand operates more than 300 franchise branches nationwide.
Ms Jumnian said weak consumer purchasing power is causing customers to reduce their orders. For example, average customer purchases have dropped from 10 skewers per person to 5-7 skewers. To counter this decline, the company launched sales promotions such as offering additional complimentary products.
