Report Thai Restaurants Face Tougher Year Than Pandemic Era

[snoop1130]

Picture courtesy of Bangkok Post

 

The Thai restaurant industry is experiencing a tumultuous year, with economic uncertainties and a decline in tourism affecting growth. Kasikorn Research Center (K-Research) has adjusted its projections, forecasting a value of 646 billion baht for 2025, a notable downgrade. This revision indicates a tepid 2.8% growth, down from the previous estimate of 4.6%.

 

The industry's challenges are exacerbated by a drop in tourist numbers, with foreign arrivals decreasing by 2.77% from January to June. Although domestic travel is anticipated to rise, cautious spending habits prevail.

 

Full-service restaurants find themselves particularly vulnerable, with projected growth of just 1.1%. Buffets, however, maintain popularity for their value, and quick-service chains, such as fried chicken and pizza outlets, continue to expand. Street food vendors thrive on affordability, projected to grow by 4.7%.

 

Chanon Koetcharoen, president of the Restaurant Association, notes a shift in consumer behaviour. Diners are now more cautious, opting for necessities and avoiding extras, influenced by financial concerns and fewer high-spending tourists, particularly from China.

 

Panthip Deecharoen, of Betterbeam Food Co Ltd, observes heightened competition and staffing issues. With fewer locals entering the restaurant industry and more opportunities for foreign workers, wages are climbing, surpassing minimum requirements.

 

Despite these difficulties, there remains potential in the high-income segment. Everyday Thai Tea is exploring healthier menu options and special promotions to strengthen customer loyalty and attract new patrons.

 

Celebrated chef Thitid Tassanakajohn points to a saturation in the fine dining sector, impacted by economic realities. Many new establishments have not survived, reflecting consumers' reluctance to spend excessively under current conditions. He emphasises the need for adaptability, strong concepts, and customer engagement for success.

 

Chanon advocates for government intervention, proposing low-interest loans and quick implementation of promised economic stimulus measures. This support could provide vital relief for businesses struggling to stay afloat.

 

Furthermore, labour shortages present a significant challenge. As competition for skilled workers intensifies, companies are offering enhanced wages and improved working conditions to retain staff. Strategies include outlining clear career paths and providing training opportunities.

 

While the current period is challenging, some operators, like Everyday Thai Tea, remain optimistic about sustaining their market presence. The focus is on maintaining consistent quality through central kitchens and launching targeted promotional campaigns to encourage repeat visits.

 

In the fine dining scene, Chef Thitid of Le Du remarks on the industry's necessary adjustment phase. He predicts that the market will stabilise over the next few years, although growth in fine dining will be limited.

 

Businesses are urged to stay flexible and innovative. Changing consumer preferences, influenced by economic conditions, require operators to rethink their strategies and possibly explore mass and premium-mass segments.

 

As the industry waits for the high season, there is a collective call for increased efforts to attract foreign tourists, which could act as a crucial economic boost. The path forward requires resilience and strategic adaptation to navigate these uncertain times successfully.

 

  Adapted by ASEAN Now from Bangkok Post 2025-06-26

 

 

[ikke1959]

There are too many restaurants and eateries in Thailand with too many same menus... Almost every 100 m you can buy something to eat or drink. From Phetkasem road to my house about 2 km there are 15 coffee and drink shops and at several place mom and pop shops 7 elevens lotus"s and soup selling places...How on earth can someone earn a living as nobody will get enough customers

[FritsSikkink]

6 hours ago, snoop1130 said:

Picture courtesy of Bangkok Post

 

The Thai restaurant industry is experiencing a tumultuous year, with economic uncertainties and a decline in tourism affecting growth. Kasikorn Research Center (K-Research) has adjusted its projections, forecasting a value of 646 billion baht for 2025, a notable downgrade. This revision indicates a tepid 2.8% growth, down from the previous estimate of 4.6%.

 

The industry's challenges are exacerbated by a drop in tourist numbers, with foreign arrivals decreasing by 2.77% from January to June. Although domestic travel is anticipated to rise, cautious spending habits prevail.

 

Full-service restaurants find themselves particularly vulnerable, with projected growth of just 1.1%. Buffets, however, maintain popularity for their value, and quick-service chains, such as fried chicken and pizza outlets, continue to expand. Street food vendors thrive on affordability, projected to grow by 4.7%.

 

Chanon Koetcharoen, president of the Restaurant Association, notes a shift in consumer behaviour. Diners are now more cautious, opting for necessities and avoiding extras, influenced by financial concerns and fewer high-spending tourists, particularly from China.

 

Panthip Deecharoen, of Betterbeam Food Co Ltd, observes heightened competition and staffing issues. With fewer locals entering the restaurant industry and more opportunities for foreign workers, wages are climbing, surpassing minimum requirements.

 

Despite these difficulties, there remains potential in the high-income segment. Everyday Thai Tea is exploring healthier menu options and special promotions to strengthen customer loyalty and attract new patrons.

 

Celebrated chef Thitid Tassanakajohn points to a saturation in the fine dining sector, impacted by economic realities. Many new establishments have not survived, reflecting consumers' reluctance to spend excessively under current conditions. He emphasises the need for adaptability, strong concepts, and customer engagement for success.

 

Chanon advocates for government intervention, proposing low-interest loans and quick implementation of promised economic stimulus measures. This support could provide vital relief for businesses struggling to stay afloat.

 

Furthermore, labour shortages present a significant challenge. As competition for skilled workers intensifies, companies are offering enhanced wages and improved working conditions to retain staff. Strategies include outlining clear career paths and providing training opportunities.

 

While the current period is challenging, some operators, like Everyday Thai Tea, remain optimistic about sustaining their market presence. The focus is on maintaining consistent quality through central kitchens and launching targeted promotional campaigns to encourage repeat visits.

 

In the fine dining scene, Chef Thitid of Le Du remarks on the industry's necessary adjustment phase. He predicts that the market will stabilise over the next few years, although growth in fine dining will be limited.

 

Businesses are urged to stay flexible and innovative. Changing consumer preferences, influenced by economic conditions, require operators to rethink their strategies and possibly explore mass and premium-mass segments.

 

As the industry waits for the high season, there is a collective call for increased efforts to attract foreign tourists, which could act as a crucial economic boost. The path forward requires resilience and strategic adaptation to navigate these uncertain times successfully.

 

  Adapted by ASEAN Now from Bangkok Post 2025-06-26

 

 

Worse than pandemic area but still growth, what a load of baloney.

[Packer]

Time to increase the prices.