Report Thai Street Food and Beverage Sector Faces Three-Year Slowdown

[snoop1130]

File photo courtesy of TTG Asia

 

In a challenging period for Thailand's bustling street food and beverage sector, operators are preparing for a prolonged downturn, as street food traffic dwindles and key areas like Banthat Thong see declining patronage from both Thai and Chinese customers.

 

Paisarn Aowsathaporn, Senior Executive Vice President at Thai Beverage Public Company Limited, the company behind well-known brands such as Shabushi and KFC, expressed concerns about the industry's trajectory. He noted that while the sector, valued at nearly 700 billion baht, continues to grow in line with economic trends, forecasts indicate a slowdown by 2025. This comes after the Department of Internal Trade reported that approximately 3,000 restaurants closed in the first quarter, despite a comparable number of new openings—a reflection of the sector's natural business fluctuations.

 

Amid this backdrop, mass-market, quick service, and full-service restaurants are performing better, though buffet establishments face fierce competition. Paisarn highlighted that aggressive pricing wars, particularly in sukiyaki buffets, have eroded profit margins and suggested that price-cutting is not a sustainable long-term strategy for any brand. ThaiBev, instead, opts to focus on consistent quality over price-based competition.

 

Meanwhile, The Coffee Club under The Minor Food Group, which operates over 2,100 outlets in Thailand, has adjusted its strategy to rely heavily on international tourists, who constitute 70% of its clientele. Nongchanok Sathananon, General Manager, emphasized the importance of maximizing sales during peak tourist seasons while aiming to break even during low seasons. With the economic slowdown, the brand's growth plan centres on enhancing existing outlets rather than expanding aggressively, investing in store refurbishments to deliver an appealing dining experience without resorting to promotional discounts.

 

The Coffee Club's strategy highlights a shift toward accommodating local customers, increasing their proportion from 30% to 40% to bolster long-term sustainability. A key initiative involves redesigning seating layouts to optimise space for solo diners, catering to both students and professionals who require an inviting space for work or study.

 

As the industry navigates these challenging times, both ThaiBev and The Minor Food Group underscore the need for strategic adjustments focusing on quality, customer experience, and sustainable growth to weather the projected slowdown in Thailand's vital food and beverage sector.

 

  Adapted by ASEAN Now from The Nation 2025-06-16

 

 

[ikke1959]

It will rise as there is a chase for expats who are streetsellers too... Protection of normal jobs only allowed for Thais... The few expats who are now streetsellers will  loose their customers to the Thais, which will boost the economy even more