Thai Restaurant Industry Faces Crisis as Purchases Plummet by 40%

[Maxbkkcm]

Are we heading to a serviceless, restaurantless ? Whats the pount if raising everything? They really want people stay home and stop living. What the plan here? I thought they were obsesss about making cash. By increasing everything, they wont be any customers worldwide in the future. 

[Banana7]

I've started preparing my own meals at home. Restaurant meals seem to have very small protein portions. I love a nice thick juicy Australian grass fed strip loin steak, some mushroom and onion garnish, some vegetable and eggs for breakfast. Brings back memories eating at Denny's restaurant, steak and eggs for breakfast. Even started making my own pizzas since some of the shops in Pattaya have switched to processed mozzarella cheese and the cheese layer is too thin. Just can't find quality in restaurants for a decent price.

[scoutman360]

Just a short time ago before Covid, street food was easily 35 thb. I am not blaming the vendors, as usually the problem is higher up the food chain. But people walk with their feet. Sooner or later it will resolve itself, and many will be out of business. 

[Nick Carter icp]

45 minutes ago, Maxbkkcm said:

Are we heading to a serviceless, restaurantless ? Whats the pount if raising everything? They really want people stay home and stop living. What the plan here?

 

   Prices have gone up worldwide , everything's gone up by about 30 % the world over 

[BrandonJT]

1 hour ago, NorthernRyland said:

Someone was confused with this graph so it needs some more explanation. This is the "M1" money supply in the US. From ChatGPT:

 

The M1 money supply is a measure of the most liquid forms of money in an economy. It represents the money that is immediately accessible for spending and transactions. M1 is the narrowest definition of money and typically includes:

    1.    Currency in Circulation: This includes paper money and coins that are held by the public.
    2.    Demand Deposits: Checking accounts that people can use to make payments with checks or electronic transfers.
    3.    Traveler’s Checks: Although less common today, they are included as part of M1.
    4.    Other Checkable Deposits (OCDs): These include deposits in institutions that offer check-writing privileges, such as NOW accounts (Negotiable Order of Withdrawal accounts).

 

THIS is the reason for the inflation, an increase the money supply available to consumers. Prices have gone up because the value of the currency has gone down. The inflation problem is 100% caused by government intervention.

 

 

You can't pick and choose the statistic that makes your point sound better. Bullet points below courtesy of Gemini.

 

The relationship between money supply and inflation is complex, and economists have differing views on which measure, M1 or M2, is a better indicator. However, generally, M2 is more closely watched when analyzing the potential impact on inflation. Here's why:

• M2's Broader Scope:
  • M2 includes a wider range of assets, capturing a more comprehensive view of the money available in the economy. This broader perspective is often considered more relevant when assessing inflationary pressures.  
     
  • It includes assets that, while not as immediately liquid as those in M1, can still be readily converted to cash, influencing spending and thus, inflation.  
     
• Historical Correlation:
  • Historically, M2 has shown a stronger correlation with inflation than M1. This has led many economists to rely more heavily on M2 when forecasting inflation.

 

So yes, there was certainly an increase in 2020, but not nearly what you are trying to make it look like with M1.  The vast majority of the price increases came from corporate greed, with many of them admitting they were raising prices as much as possible to see when people would stop paying it, and to a lesser extend supply chain uncertainty.

[rattlesnake]

3 hours ago, save the frogs said:

I paid 100 baht for sticky rice and mango at a street stall. 

I guess I got ripped off. 

I'm still not sure what's worth what. 

 

 

 50 baht in a regular market.

[rattlesnake]

39 minutes ago, Banana7 said:

I've started preparing my own meals at home. Restaurant meals seem to have very small protein portions. I love a nice thick juicy Australian grass fed strip loin steak, some mushroom and onion garnish, some vegetable and eggs for breakfast. Brings back memories eating at Denny's restaurant, steak and eggs for breakfast. Even started making my own pizzas since some of the shops in Pattaya have switched to processed mozzarella cheese and the cheese layer is too thin. Just can't find quality in restaurants for a decent price.

 

Looks great!

 

Less protein and more carbs are a symptom of poverty. In Europe, the youth are massively quitting meat, for all sorts of "good" resaons, when the truth is they simply can't afford it.

[TedG]

2 hours ago, Cameroni said:

Many Americans cannot afford to buy fast food anymore. The day of the 1 Dollar menu is long gone. Prices have skyrocketed. 3 Fish burgers now cost 17 USD in the US.

 

The misery is global and is real.

 

I bought a grilled chicken foot-long sub from Subway last year.   The price was 14 dollars.  

[zakalwe]

This is why the food court at Terminal 21 Asok is always packed. The food there is cheaper than 7/11. 

[BrandonJT]

5 minutes ago, zakalwe said:

This is why the food court at Terminal 21 Asok is always packed. The food there is cheaper than 7/11. 

Although I will admit the portion size has also shrunk there

[DonniePeverley]

They are importanting mass cheap tourists - who would rather eat a 7.11 cheese toast than dine in a restaurant.

 

Service charge and VAT fees bill padding is not a great look i'll be honest. 

[greeneking]

8 hours ago, scubascuba3 said:

It's a no brainer, lower the prices

There are far too many restaurants, noodle soup places, fast food venues, cafes with food etc etc.

Covid made many customers get used to ordering online too.

There is too much of everything in Thailand......except customers.

[DonniePeverley]

35 minutes ago, greeneking said:

There are far too many restaurants, noodle soup places, fast food venues, cafes with food etc etc.

Covid made many customers get used to ordering online too.

There is too much of everything in Thailand......except customers.

 

 

There are customers. There are 40 million tourists. Just cheap ones. 

[scubascuba3]

7 hours ago, save the frogs said:

did you ever run a restaurant?

ever heard of .... overhead expenses? 

ever heard lower price higher sales

[scubascuba3]

6 hours ago, atpeace said:

and losing money doesn't seem like a good business plan.  You though would be happy 🙂

increase sales, improve your food

[scubascuba3]

5 hours ago, Dan O said:

You cant always do that. Market ingredient for restuarunts is up about 25% in the last year. We have a cafe in NST and can attest to the articles accuracy as far as suppressed spending.

 

The 10k baht deal is a waste of money on young people as it will be gone in a flash and there's no follow on revenue to maintain the spending level. its just smoke and mirrors to buy future votes

Probably too many businesses, the thai way

[scubascuba3]

2 hours ago, greeneking said:

There are far too many restaurants, noodle soup places, fast food venues, cafes with food etc etc.

Covid made many customers get used to ordering online too.

There is too much of everything in Thailand......except customers.

Correct, people open businesses without even assessing if there is enough demand about

[Woke to Sounds]

Ohhh Lawd all the handwringing and worry warts . . .

 

Kohvid 9Teen can do anything and everything - and will continue to do so.

 

Just blame it on Kohvid.

 

The perfect scapegoat for our troubled times.

[JoePai]

9 hours ago, lordgrinz said:

 

Next up mass-closings of megamalls.

Please !!

[phetphet]

Rental prices have gone up.

My theory, at least here in Samui. This is partially due to demand caused by so many cannabis outlets opening up everywhere.

 

Also by the influx of so many Russians due to the Ukraine war. Many have started businesses to fund their new life here, and to feed or service the needs of their compatriots. Nothing wrong with that, but these two together caused a large demand for properties in a fairly short period of time. 

 

[ChipButty]

I would say the standards have dropped, twice in this last week Ive had food poisoning, Im suffering right now, from a chicken snack, 2 loafs of bread I bought recently had gone off, I was looking yesterday and all the bread had only one day left to expire, 

[johng]

10 hours ago, Cameroni said:

the global poverty pandemic

I like that phrase. 👍

[newbee2022]

Not only on Thailand. Europe too.

As long unpredictable dictators are ruling the world in East or West, there will be hardly any recovering in economy.

[Formaleins]

It Never Rains But It Pours!

[hotchilli]

15 hours ago, snoop1130 said:

Thailand's restaurant industry is grappling with a severe downturn, with consumer purchasing power plummeting by over 40% in early 2025, according to Thanivarn Kulmongkol, President of the Thai Restaurant Association. As economic recovery slows and incomes stagnate, consumers are prioritising savings over dining out, exacerbating financial strain on eateries.

Maybe in some locations and certain eateries there is a substantial drop, maybe the high-end due to costs, around my neck of the woods everyone seems to be doing okay eeking out a living.

[factual monk]

11 hours ago, save the frogs said:

I paid 100 baht for sticky rice and mango at a street stall. 

I guess I got ripped off. 

I'm still not sure what's worth what. 

 

Yes, as normally around 60 to 75 thb

[sabai-dee-man]

10 hours ago, Celsius said:

The country is finished.

 

Again???!  LOL 

[factual monk]

Been in and around various cities of Thailand past 16 years... the main reason is quoting of higher prices by the restaurants in most of the places... I eat past 6 or 7 years at restaurants where locals eat and the prices are 25 to 30% lesser than the places frequented by tourists. Also, one gets a fresher quality of food eating at Food Gourmets, Food courts at Malls... 

[KhunLA]

Most of my favorites are still busy.  Provide good food @ good price, and you're successful.  Not just local, as when O&A, if convenient, we'll support old favorites.  

[Bohemianfish]

Things change. Maybe it will be where small shops close (mostly) and large venues thrive. Time will tell.