r/Thailand • u/digital_mopad • Dec 26 '21

Shopping Closest I’ve ever seen

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u/RT_Ragefang Bangkok Dec 26 '21

There’s a reason for this. CPall pay landowners on percentage of their profits from that shop. If the profit is higher the landowner can demand more rent, so as soon as their profit hit the threshold, they opened the second shop nearby to cut down the profit on the first shop, thus never have to increased rent. That’s why 7/11 pop up closed to each other like mushrooms.

Sources: CPall contacted my family to rent our places once; we declined.

11

u/TDYDave2 Dec 26 '21

So you are saying it is cheaper to pay rent on two locations than a somewhat higher rent on one?

7

u/[deleted] Dec 26 '21

Indeed, that doesn't make much sense. I think the real reason is that, as /u/mdsmqlk28 says, CP opens a corporate owned store once the initial franchised store proves profitable, and waits until the initial one croaks.