The Thai Restaurant Association has cited a troubling downturn in consumer spending, with sales plummeting below 50%, an issue raised on 9th September 2024 by Mrs. Thaniwan Kulmongkol, the association's president. She has called for more detailed explanation and concrete steps in the government’s 10 urgent policies to address the crisis.

 

The restaurant industry has been battered by multiple challenges, including stiff competition from cheap imported goods and foreign businesses facilitated by the TEMU Chinese application. Thaniwan stressed the importance of government support for SMEs and a more stringent execution of the laws that protect local enterprises.

 

The association has presented three immediate requests:

1. Reassess the planned nationwide minimum wage hike to 400 baht, set to take effect on 1st October, to mitigate additional strain on businesses.

2. Implement measures to cap or reduce energy costs, such as electricity bills.

3. Fast-track the disbursement of the 2024-2025 budget to inject funds into the economy, thus boosting consumer spending.

 

Particularly hard-hit regions like the North and Northeast are experiencing even more severe declines. The association supports the government's upcoming initiative to distribute 10,000-baht digital wallets in September but insists that these funds should be usable in all types of eateries, including small, family-run restaurants, not just major chains.

 

Thaniwan aims for a holistic response from the government, hoping to revitalise the sector and support struggling businesses. The association's plea underscores the need for immediate and effective actions to safeguard the future of Thailand’s vibrant restaurant industry, reported The Pattaya News.

 

Photo: The Pattaya News

 

-- 2024-09-10
 

 

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Too much supply

too little demand,

Why do businesses always fight min wage increases?   

This 10k vote buying scheme needs to die or be available to spend at any food eatery but not booze or cigarettes. 

seems every week we hear the same story about restaurants

It is like the bars complaining.  Why?  Too many bars just like there are too many restaurants.

Add, take a look at the photo all that deep fried fat, grease, oil garbage food  Thais probably don´t want to eat that stuff anymore.

When are people going to learn? The government have nothing to do or any obligations to save struggling private businesses.

Great, gonna get down even more once TRD starts extorting me.

Planning businesses instead of almost in every 100m a restaurant or foodshop.. Nobody can earn anything...

3 hours ago, papa al said:

Too much supply

too little demand,

 

2 hours ago, bkk6060 said:

It is like the bars complaining.  Why?  Too many bars just like there are too many restaurants.

Add, take a look at the photo all that deep fried fat, grease, oil garbage food  Thais probably don´t want to eat that stuff anymore.

 

28 minutes ago, ikke1959 said:

Planning businesses instead of almost in every 100m a restaurant or foodshop.. Nobody can earn anything...

Let's look at the REAL problem here.

 

Why do people open restaurants - because they can cook and earn money.

Why do people open massage parlours - because it is easy to learn massage and many learn at home.

Why do people open beauty parlours and hairdressers - because it is easy to learn after they have left school.

 

The problem is that most Thais have a poor education with little or no qualifications.

Where can they get jobs outside of the major cities?

Factories want cheap labour (immigrants - no minimum wage).

The above SME's are an alternative to starving.

The government does not give a hoot about these small business. They do not put the ministers in power. Rich businesses do.

Yes, there are too many. What alternative do they have?

How cheap imports affect negatively the restaurant businesses? I thought it would be the other way around.

That's what happens when there is almost a monopoly on the food supply, and prices are raised to the point, restaurants have to raise their prices enough to make a profit, but the customer can no longer afford to dine out.   At least as much as they use to.

 

Hard enough for some to eat at home, at the same level as a year or 3 ago.   I see 5-10-20% price increases every week, every month, almost across the board.  And that's just for whole, raw foods for home cooking, not ever the processed stuff.

 

All the basics up, petrol up, electric up ... salaries, not so much.

12 hours ago, snoop1130 said:

She has called for more detailed explanation and concrete steps in the government’s 10 urgent policies to address the crisis.

Short term stimulus policies are all they have.

No long term strategies to increase the economy.

13 hours ago, snoop1130 said:

The association has presented three immediate requests:

1. Reassess the planned nationwide minimum wage hike to 400 baht, set to take effect on 1st October, to mitigate additional strain on businesses.

2. Implement measures to cap or reduce energy costs, such as electricity bills.

3. Fast-track the disbursement of the 2024-2025 budget to inject funds into the economy, thus boosting consumer spending.

4. a foreign income tax diner charge on all foreign diners of 15-25%

A generation ago I would assure friends and acquaintances visiting me in Thailand, that you cannot go wrong with street food. Tasty, freshly cooked by people who have done this for years. 

Today it is the opposite; Thai food is, more often than not, already cold in huge aluminium pots along the road which has been cooked hours ago and meanwhile went cold. Tons of sugar and MSG is added and youngsters today explain me, that this is how genuine Thai food is cooked not knowing, that I ate here before they were even born.

And, in the ratio of sinking quality and quantity the pricing went up even more. I could name dozens of eateries which either went already out of business or "optimized" the cooking to the benefit of owner and/or staff which is getting lazier by the day. Riverside along the Mekong in Nong Khai, in a restaurant they even listed "ice" for drinks with 80 Baht for a small pale while every single drink (small stubbies of local beer) had outside temperature and were undrinkable. 

The governmental fiddling with salaries and pricing of merchandise has created only havoc in this industry while ensuring, that the supply chain outside fresh markets (or the gruesome wet markets) is monopolized; look at who owns 7/11, Lotus's and Makro ..... to start with. 

Today's opinion is, that I do not have to leave home for lousy food, I can do better at home; having the time and the fun, I have not eaten any decent Thai food outside in a very long time - unfortunately! 

23 hours ago, snoop1130 said:

Reassess the planned nationwide minimum wage hike to 400 baht,

 

How many restaurants have over 200 employees? Seems like the restaurant association only represents the big chains.

 

Also, if your business is a restaurant, and you list imported food as competition, I suggest you food must be really crap if people are willing to wait days to eat 555

Thailand has opened the flood gates to cheap mass tourism from India and China ... which in turn has driven away quality tourists (who do not want to spend time with mass tourism). 

 

Vast majority of indians do not go shopping in malls or eat in restaurants. 

 

So when you direct policies to attract cheap tourists, you should not be surprised when you see cheapness around you.

 

Why not attempt to clean up the tourism industry by attracting quality? More numbers is not always better. 

On 9/10/2024 at 12:18 PM, papa al said:

Too much supply

too little demand,

 

indeed, need to be business savvy to survive and be successful, it's certainly doable with the right management approach

16 hours ago, hotchilli said:

Short term stimulus policies are all they have.

No long term strategies to increase the economy.

 

always the same, short fix solutions, no long term capital investment.

4 hours ago, DonniePeverley said:

Thailand has opened the flood gates to cheap mass tourism from India and China

Are you suggesting that there are no "quality tourists" from India and China? How do we define "quality tourist"? Maybe it should be part of the TV application process...

2 hours ago, Woke to Sounds of Horking said:

Are you suggesting that there are no "quality tourists" from India and China? How do we define "quality tourist"? Maybe it should be part of the TV application process...

go ahead,,,,     Name  "2"

17 hours ago, Woke to Sounds of Horking said:

Are you suggesting that there are no "quality tourists" from India and China? How do we define "quality tourist"? Maybe it should be part of the TV application process...

 

 

Go look at the spending average per visitor. Indians are the lowest spenders. 

 

Even African countries have tighter restrictions on allowing Indian visitors than THailand. 

 

What's also a smack in the face, is that India don't let in Thai's without a strict visa !!!! Yet Thailand this year has just waved the red carpet for them.

 

When there GDP per person is 3 tiimes less than a Thai's ... they will start coming here to work, just watch. 

Yes but Thailand opened the gates to Russian tourists, who have done a really good job so far at starting up businesses and contributing to the local economies. More than offsets the cheap Indians. Regarding the Chinese tourists you go to King Power on Rangnam Rd and its packed to the gills, those tourists throwing cash around like confetti. So Thailand wins some, loses some. Cant win em all buddy!!

On 9/10/2024 at 11:09 AM, snoop1130 said:

She has called for more detailed explanation and concrete steps in the government’s 10 urgent policies to address the crisis.

 

Perhaps they're tired of thiis junk food  they're selling?  We cook every meal at home.