S&p presenters show off the chain’s moon-cake presentation boxes.

CEO Pravesvudhi Raiva said yesterday the lower sales estimate would be in line with the growth rate of the entire moon-cake market. The market, which is only in Bangkok, is currently worth Bt400 million, with S&P having almost half of it.

This year, S&P expects to sell 1.4 million moon cakes.

Another factor that might lead to the market's slowdown is the departure of some major players, including Village.

Those still competing include the Oishi Japanese Restaurant chain, Shangri-La Chinese Restaurant chain, the Thong Ki Chinese Restaurant and premium hotels.

S&P has allocated a Bt2-million budget for its moon cakes.

However, almost all of that has already been used for developing packages under the Magic Moon theme, with decorative dragons, birds, fish and lanterns - all considered lucky by the Chinese.

S&P has increased the price of its moon cakes 5 per cent this year, but its production costs have increased more than twice that.

In terms of overall performance, S&P generated only 5-per-cent sales growth in the first half of the year, well below its target of 15 per cent.

However, the company still hopes to reach its whole-year sales target through big campaigns that coincide with several festivals in the second half. Usually, 60 per cent of its sales are from the second half.

To stimulate consumer spending, S&P has focused on pricing campaigns, as it has learned its customers react positively to discounts.

The company plans to open 30 new restaurants next year. Each of them will cost about Bt200 million on average.

The company is also spending Bt20 million to open a 200-square-metre branch in Bangkok's new Suvarnabhumi Airport on September 28.

S&P has signed a five-year contract for the concession.

Nitida Asawanipont

The Nation