Virus concerns will cut restaurant revenues by about 8% this year – Kasikorn Research Centre

 

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Public concern over COVID-19 is expected to slash the revenues of the restaurant sector this year by 25.6-36.5 billion baht to between 402 and 412 billion baht, according to Kasikorn Research Centre.

 

The research centre says that the public’s fear of COVID-19 is impacting many industries, including the restaurant trade, many foreign tourists have cancelled their visits to Thailand and Thais are reluctant to dine out at busy restaurants.

 

The grim economic outlook, and the possibility of layoffs, have also led people to spend more carefully and limit their dining out.

 

Full story: https://www.thaipbsworld.com/virus-concerns-will-cut-restaurant-revenues-by-about-8-this-year-kasikorn-research-centre/

 

-- © Copyright Thai PBS 2020-03-11

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8%??  Really??  The world's economies are crashing and the stock markets have crashed.  I just love how positive Thais are in the face of bad cirumstances.  Watch for this to be revised upwards - or never mentioned again.  Or are they only talking about the Hyatt restaurants and the Michelin rated ones? Certainly not those at Swampy airport !!

 

 

88% is more believable.

In singapore, some dude who had symptoms and cooked food in a hawker centre was

asked to self-isolate and quarantine himself....he went on cooking and serving food

to the community until the day his result came back positive.

 

This is happening in many instances. Learn to make an omelette.

Many places which are normally full are now (almost) empty. If they still have 50% of usual business they can call themselves lucky.

And somehow it does not look as if this will get better anytime soon.

It must be hard to be in that industry in the moment.

Got Thai friends who run a Restaurant in Chiang Mai and they are reporting 75% loss of business and they say others reporting similar.

8% is like closing for 1 month - nothing.

 

The virus is going to around a lot longer than just 1 or 2 months.

 

If they said 40%, I would not at all be surprised...but 8%?

maybe it was a Typo,  88% maybe that's right 

Thonglor will be a ghost town and all the hisos will starve to death, because they've never had to cook their own food before.

51 minutes ago, trainman34014 said:

Got Thai friends who run a Restaurant in Chiang Mai and they are reporting 75% loss of business and they say others reporting similar.

Appears more truthful figures. You only have to look at Thai food halls they are deserted.

1 hour ago, quake said:

maybe it was a Typo,  88% maybe that's right 

I would agree and unfortunately TV just reprint it as was -duh!

What orifice did they pull these magic numbers from?

More like 80% I reckon.

What else do you expect from a bank closing their counters and operating from home?

Some restaurants went belly-up already, the overall impact to year-end is difficult to estimate but it will be at least ⅓ if not more. Moreover, less revenue will also co-incide with even lesser profit as many operators wrongly believe by slashing prices they enlarge the cake. 

"Virus concerns will cut restaurant revenues by about 8% this year – Kasikorn Research Centre"

Not even close.

 

No problem. Just use Thai thinking, no customer raise price 2 or 3 times to make up the loss if they even have any customers left.

18 hours ago, AussieBob18 said:

8%??  Really??  The world's economies are crashing and the stock markets have crashed.  I just love how positive Thais are in the face of bad cirumstances.  Watch for this to be revised upwards - or never mentioned again.  Or are they only talking about the Hyatt restaurants and the Michelin rated ones? Certainly not those at Swampy airport !!

 

 

If you actually read the article in the OP and not just the headline you'll see it refers to the restaurant sector rather than individual restaurants, that means all restaurants on average. Averages are tricky beasts, it means some restaurants will suffer a 100% drop whilst other may suffer no drop at all!

14 hours ago, Emdog said:

What orifice did they pull these magic numbers from?

Which part of an 8% drop across the entire sector did you not understand!

Does the fall of a business sector a reason to rejoice? Or for that matter the difficult situation in a country?It seems there is a more dangerous disease than the Coronavirus spreading around...

1 minute ago, ravip said:

Does the fall of a business sector a reason to rejoice? Or for that matter the difficult situation in a country?It seems there is a more dangerous disease than the Coronavirus spreading around...

Right now I don't think there's anything more dangerous anywhere on the planet for everyone at the same time, experts are now saying the fatality rate is some 15 times higher than normal flu.

28 minutes ago, Gudge said:

No problem. Just use Thai thinking, no customer raise price 2 or 3 times to make up the loss if they even have any customers left.

You have ONE example of this? Raise price 2 or 3 times? Have a link? 

Not true story, you imagine. 

 

I think will be more than 8% sure. 

 

But if only 8% of revenue will be big problem for profit. Restaurant normally 5-20% profit for the revenue. 

IMO many restaurant will closed.

 

Quite some local restaurants are closed here in Krabi. 

Why not start good take-away restaurants at all fuel stations along main roads? Problem solved! 

14 minutes ago, fruitman said:

Why not start good take-away restaurants at all fuel stations along main roads? Problem solved! 

There does tend to be eateries at many service stations although whether or not they are good is a different subject. One of the problems with this concept is the large oil companies tend to own the service station plaza and they use franchise operations to third parties to offset their own running costs. So PTT builds a plaza and installs a series of pumps and then gets KFC. 7/11 and Pizza Company to rent units which reduces their operating costs. Small restaurants typically can't afford the rent on such places because the profit margin and turnover is so small whilst overheads are high.