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

[hotchilli]

15 hours ago, snoop1130 said:

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.

Quality, quantity and price are a factor... 

[Muhendis]

And there was me thinking that street food was all cookery hand carts and tables 'n chairs on the pavement (sidewalks if you are foreign).

[Tom89]

22 minutes ago, hotchilli said:

Quality, quantity and price are a factor... 

Start reducing the amount of sugar they put in everthing

[FlorC]

17 minutes ago, Tom89 said:

Start reducing the amount of sugar they put in everthing

And Monosodium Glutamate.

[Joe Boy Walton]

If they went back to individual street vendors selling their own unique product instead of that mass produced same same processed crap, things might get better.

[Gottfrid]

35 minutes ago, Muhendis said:

tables 'n chairs on the pavement (sidewalks if you are foreign).

Does that mean Thai´s say pavement?

[watchcat]

31 minutes ago, Tom89 said:

Start reducing the amount of sugar they put in everthing

 

Then nobody will frequent the coffe shop.

[PBob]

The head line and picture references streetfood but the article is all about the big chains (KFC, The Coffee Ckub etc).

They must be worried after flooding the market with outlets when people are feeling the pinch.

[ChockyTheCat]

We don’t need market research to tell us there’s far too many cafes ,restaurants, coffee shops and street food vendors, and despite almost empty businesses on every street there’s new ones opening daily !

[mrjohn]

The small town where I live we has very few farang tourists and next to no Chinese.

Yet, we have a bustling night market.

Why do so many people seem to think that Thailand is Bangkok or Bangkok is Thailand?

 

 

[marin]

6 minutes ago, mrjohn said:

The small town where I live we has very few farang tourists and next to no Chinese.

Yet, we have a bustling night market.

Why do so many people seem to think that Thailand is Bangkok or Bangkok is Thailand?

Every town in Thailand has a Talat Not. Nothing to do with the OP. 

[fredwiggy]

2 hours ago, FlorC said:

And Monosodium Glutamate.

MSG isn't a problem, but salt, sugar and rancid oil is.

[FlorC]

57 minutes ago, fredwiggy said:

MSG isn't a problem, but salt, sugar and rancid oil is.

Yes it is . But you've got them:

Salt , sugar , palm oil and msg.

[fredwiggy]

5 minutes ago, FlorC said:

Yes it is . But you've got them:

Salt , sugar , palm oil and msg.

MSG isn't a health concern except for the few who might be allergic........https://www.healthline.com/nutrition/msg-good-or-bad..

[FlorC]

14 minutes ago, fredwiggy said:

MSG isn't a health concern except for the few who might be allergic........https://www.healthline.com/nutrition/msg-good-or-bad..

Debatable.

[fredwiggy]

4 minutes ago, FlorC said:

Debatable.

Factual. Healthline is a very reputable website , unbiased and going by data from studies.

[paul1804]

Firstly the street sellers shouldn't be all over the place but in select small market areas that have basic ammenities.

They need to get back to making proper Thai food without all the additives, mainly MSG & Sugar but there are many others that are used which are outlawed in many countries! Due to no leadership from the authorities there are food sellers, restaurants & the likes opening and closing weekly so no wonder many are going broke, there are just too many outlets selling food so in order to make a profit lots of cost saving measures are involved which leads to poor quality and often food thats gone bad!! Its a downward spiral that is happening because Thailand has poor governance! Money & greed override good practices which long term is damaging Thailands reputation!

 

[paul1804]

35 minutes ago, FlorC said:

Debatable.

To 

 

30 minutes ago, fredwiggy said:

Factual. Healthline is a very reputable website , unbiased and going by data from studies.

So supposedly is FACT CHECK run by crooks!!! The Covid Virus came from Bats in a wet market! Before you believe what you read do some research. 

MSG is a danger to those with asthma and other respiratory diseases, just for starters and is the cause of many allergic reactions. Asian kitchens just love MSG because its cheap and easy, imagine if they had to flavor their food with herbs & spices, the cost and the effort!!!

[fredwiggy]

7 minutes ago, paul1804 said:

To 

 

So supposedly is FACT CHECK run by crooks!!! The Covid Virus came from Bats in a wet market! Before you believe what you read do some research. 

MSG is a danger to those with asthma and other respiratory diseases, just for starters and is the cause of many allergic reactions. Asian kitchens just love MSG because its cheap and easy, imagine if they had to flavor their food with herbs & spices, the cost and the effort!!!

I always research as opinions mean little until proven as facts. I just said MSG can be allergenic to some. Everything and anything can hurt some people, just like Covid and the vaccines, but the majority they don't. The same with MSG. I've been into nutrition for 50 years, and don't trust anything unless proven. My diet is as clean as it can be, close to a blue zone diet, and that's all the proof anyone needs.

[spidermike007]

A lot of people just don't like low quality corporate junk food, and low quality corporate restaurants. I do everything in my power to avoid supporting those enormous chains and a would much rather support local businesses and Mom and type Pop operations.