Covid-19 takes huge bite out of restaurant giants

[webfact]

Covid-19 takes huge bite out of restaurant giants

By THE NATION

 

 

Covid-19’s devastating impact on the restaurant business has been revealed in four leading chains’ turnover figures for the first half of 2020.

 

MK Restaurant (MK), After You (AU), S&P Syndicate (SNP), and Zen Corporation Group (Zen) all suffered an unprecedented collapse of their profits.

 

MK saw year on year net profit drop 93.35 per cent, from Bt1.3 billion to Bt93.02 million. AU’s net profit dropped 91.67 per cent to Bt10.23 million – from Bt122.84 million last year.

 

Meanwhile SNP and ZEN fared even worse.

 

SNP’s net profit of Bt87.67 million last year fell 188.73 per cent to a deficit of Bt77.79 million. ZEN was hit by a whopping 291.73 per cent drop in net profit, from Bt65.29 million to a deficit of Bt125.18 million.

 

The main culprit was the Covid-19 outbreak, which prompted the government to shutdown restaurants and entertainment venues from the middle of March to the middle of May.

 

During the shutdown, the chains tried to soften the blow by offering deliveries and takeout services, but to little effect. AU also cut its staff numbers during lockdown.

 

The first-half figures saw the stock price of the chains plummet by 10 to 40 per cent last Friday (August 14). Total market capitalisation of all four fell by Bt22 billion to Bt62 billion.

 

Meanwhile, Minor International Group (MINT) and Oishi Group (OISHI) also suffered a drop in profits. Total revenue generated from MINT’s restaurants fell by 21.12 per cent to Bt9.65 billion, while income from OISHI restaurants fell by 65.76 per cent to Bt630 million.

 

Source: https://www.nationthailand.com/news/30393097

 

-- © Copyright The Nation Thailand 2020-08-18

 

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[Justgrazing]

16 minutes ago, webfact said:

(SNP),

They do love an acronym .. but I wish they'd stop half inching other people's as at first glance you'd think what have the Scottish National Party got to do with restaurants in Thailand unless they are thinking of doing a 'aggis and neeps shop .. 

 

23 minutes ago, webfact said:

AU

What did Silver say when it seen Gold walking across the street .,? 

" AU " ..

 

26 minutes ago, webfact said:

(MINT) and Oishi Group (OISHI) also suffered a drop in profits

Not a mint to be made from green tea then .. 

[scammed]

do note that covid had no effect on these resturants whatsoever,

it was the governments knee jerk shutdown that caused the economic disaster

[american2]

Other than Hospitals   what segments of business and society has not had a serious bite removed.

[CelticBhoy]

Thinner Bangkokians on the horizon, methinks . . . . ????

[hotchilli]

90% plus drop in revenue... is a big hit, but just shows what huge profits they were making before.. 

I was taken once to an MK restaurant by some Thai friends, to be honest I thought for what you actually got to eat and the quality the size of the bill it was dis-proportionally high.

Way over value for what you got.

[Bender Rodriguez]

wow, that sure is/was a lot of profit

 

last time MK for 3 people not ordering too much, was 100 baht less in total

 

than a buffet all you can eat shabu ... so guess where they don't see us anymore 

[bloodyholly]

Covid-19 takes huge bite out of restaurant giants and completely devours  many smaller restaurants 

[kickstart]

Our local S n P,in a PPT petrol station has closed, they have taken the sign down just an empty shop, been they for a few years to. 

  

[trainman34014]

1 hour ago, hotchilli said:

90% plus drop in revenue... is a big hit, but just shows what huge profits they were making before.. 

I was taken once to an MK restaurant by some Thai friends, to be honest I thought for what you actually got to eat and the quality the size of the bill it was dis-proportionally high.

Way over value for what you got.

The only decent food at MK is the Duck and that's all i order !

[tomazbodner]

4 hours ago, american2 said:

Other than Hospitals   what segments of business and society has not had a serious bite removed.

Hospitals were hammered as well as people avoided them for all non-COVID procedures, afraid to walk in, fearing they would get infected at the hospitals. Went to my local (private, if that makes any difference) hospital last week, and there were literally no patients anywhere. In normal times, you'd wait for half an hour for cashier to finish. Wait for doctor to see you. Now as soon as they find your file you're ready to go, and the moment they put your medicine together (a few minutes) you're called to pay.

 

With that I would be confident hospitals are currently suffering significant losses as well.

[Nanaplaza666]

4 hours ago, american2 said:

Other than Hospitals   what segments of business and society has not had a serious bite removed.

Their talking about these big money making restaurants that are making loads of money for years and years already and now they get hit , what do you think about smaller restaurants and businesses they are already closed or on the brink of drowning . I totally agree with you POST OF THE DAY ????. Same like they are talking about SHELL many times that shell had a loss at the first quarter of the year but what they don't say is that they still where 500 milj in the green . 

[DrTuner]

Might be good for Thai health when they don't get their 50kg/d dose of MSG. Although the street vendors will pour you a barrelful.

[DrTuner]

5 hours ago, hotchilli said:

I was taken once to an MK restaurant by some Thai friends, to be honest I thought for what you actually got to eat and the quality the size of the bill it was dis-proportionally high.

The part with most taste at MK is the boiling water.

[Pattaya Spotter]

OMG...the food portions at Fuji (part of Zen Group) will shrink even further!

[Don Mega]

9 hours ago, scammed said:

do note that covid had no effect on these resturants whatsoever,

it was the governments knee jerk shutdown that caused the economic disaster

What was the catalyst for the Thai government (like many other governments round the world) to lock down the country ?

[Don Mega]

8 hours ago, american2 said:

Other than Hospitals   what segments of business and society has not had a serious bite removed.

We are extremely busy....putting more staff on to meet demand infact, as are businesses of a similar nature.

Edited August 18, 2020 by Don Mega

[steven100]

a tear almost came to my eye reading this ....  I had to get a tissue 

Edited August 18, 2020 by steven100

[Justgrazing]

32 minutes ago, DrTuner said:

The part with most taste at MK is the boiling water.

Hahahaha .. that is so true .. M K's take on Consommé ...

[IAMHERE]

19 hours ago, american2 said:

Other than Hospitals   what segments of business and society has not had a serious bite removed.

Black market money lenders comes to mind.

[Teee]

Overpriced Thailand.

My god how expensive the restaurants are esp in Bkk.

More expensive to eat out than in my home country.

Nothing to do with Covid.

 

Only mugs live in Thailand

[ChipButty]

23 hours ago, american2 said:

Other than Hospitals   what segments of business and society has not had a serious bite removed.

The hospitals are suffering half my family are nurses, no overtime, one of my wifes friends is a cancer specialist doctor in BKK and she was saying business is well down and they work in the government as well as the private hospitals 

[DrTuner]

8 hours ago, Teee said:

Overpriced Thailand.

My god how expensive the restaurants are esp in Bkk.

More expensive to eat out than in my home country.

Nothing to do with Covid.

 

Only mugs live in Thailand

Farang food has never been cheap. Thai food that actually tastes good is hard to find, but still affordable. In general having a western lifestyle here is, excluding housing, IMHO about 2x as costly as in the west. Import taxes, price gouging, etc,etc. And it's still not up to par in quality.

 

If you go native, it's alright.

[Teee]

On 8/19/2020 at 6:27 AM, DrTuner said:

Farang food has never been cheap. Thai food that actually tastes good is hard to find, but still affordable. In general having a western lifestyle here is, excluding housing, IMHO about 2x as costly as in the west. Import taxes, price gouging, etc,etc. And it's still not up to par in quality.

 

If you go native, it's alright.

Eat native?? Like eat 40 bht food off the street sellers and eat what appears and tastes ok at the time but in fact is food contaminated by the food seller not washing their hands and the pollution from the thousands of cars passing by.

 

Yes i have had very dodgy tummies when i first came to Thailand and tried to go native.

 

In the thai restaurants most are clean and very good....but you do pay the extra...Pad Thai with Chicken can cost 100 to 140 in the smaller thai places. But as all you are aware you tend to eat 4 times maybe if out late in the evening a 5th time....therefore at least on a cheap day 600 bht and thats without your large bottle of Chang or Leo.

 

Best thai restaurant...opp Robinson Silom and Saphan Taskin BTS

Palate Bar and Restaurant....roof top bar as well... amazing place amazing service...not too expensive for the food....but taste the food you will be going back there for sure lots 

[SteveK]

It's the government that has caused these losses, not the virus.

[SteveK]

13 minutes ago, Teee said:

Pad Thai with Chicken can cost 100 to 140 in the smaller thai places

I'd love to know where a pad thai gai costs 140 baht. You're getting screwed mate. 

[Rancid]

Businesses make profits as they are popular. If they shut down, lots more people lose their jobs, and the malls lose rent, and the suppliers lose income and may also layoff staff. There are no good outcomes that I can see.