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. 

[hotchilli]

15 hours ago, snoop1130 said:

This revision indicates a tepid 2.8% growth, down from the previous estimate of 4.6%.

4.6% was overrated.

[lapamita]

9 hours ago, FritsSikkink said:

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

so economics :

2,6% increase and thats a lot ( i doubt ist overall 2,6 maybe in bangkok, reality maybe a minus even)

minus aprox 5% price increase

+ 5% more competators

 

are at the end a minus for everybody

[newbee2022]

10 hours ago, ikke1959 said:

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

Well, if there is ONE coffeeshop with a sufficient amount of customers the the "me too" thinking starts. And so you'll see in a couple of months more and more shops. Bankruptcy is coming soon, and debts with banks too. Repayments Impossible.

[rupa]

They want to make up for the losses made during the Covid-19 period in a year and they increased the prices by 15-25%, resulting in no more tourists...

[MalcolmB]

11 hours ago, ikke1959 said:

Almost every 100 m you can buy something to eat or drink

It is good isn’t it?

[Jonathan Swift]

It's the economy, stυpid. (that's not the actual quote, it's the one people think he said)

[FritsSikkink]

2 hours ago, lapamita said:

so economics :

2,6% increase and thats a lot ( i doubt ist overall 2,6 maybe in bangkok, reality maybe a minus even)

minus aprox 5% price increase

+ 5% more competators

 

are at the end a minus for everybody

Have you been here in the covid period? Loads of shops went bankrupt, empty shophouses everywhere.

Your minus increase and inflation numbers are only in your mind, not based on reality.

[Taco]

Depends where you’re at. I own 2 restaurants in koh phangan and one restaurant broke sales records 10 of the last 12 months but…. Rents are going up 25% a year

[arick]

Yes because you can go to Bali and have way better food and fresh real fish for less money than in Thailand. Bali has a way cheaper international cuisine than Thailand. And way more variety and better white wine and drinks and entertainment.

I paid 280 bht for one Leo in the BKk domestic terminal. Crazy money compared to what it really cost in a local place.

[trainman34014]

My Thai Wife says Thailand has spent so many years screwing itself that it is now time to live with it !

[Quentin Zen]

2026 I have a great idea!!!!!  Coffee shop!!!!   

 

Just married a farang.  I only need 80,000.  nah, make that 180,000.  OK

 

should be great.   I see Billy and Bobby just opened stores next to mine.

 

I'll be the next Starbucks, sure, sure.  Very good.  

[unblocktheplanet]

Just maybe...if inexpensive restaurants & even roadside stalls offered decent quality oil instead of palm & soy, no MSG, no sugar, reduced salt &some vegetarian (not vegan) options, people would flock to them even at more expensive prices. I know I would.

[Galong]

Here's the thing: cannabis gives people the munchies, and that usually means more business for restaurants. Plus, a lot of tourists love that they can enjoy cannabis in Thailand, making it another reason for them to visit.
 

So, if Thailand bans liberal cannabis use, it could make things even tougher for Thai restaurants. It’s a bit of a double whammy, potentially cutting off a source of business and taking away a draw for tourists who come here partly for the cannabis.

[newnative]

Tougher year than the 'pandemic era'?  Totally doubt that.

[Toby1947]

Even as a tourist I tend to prepare my own food, Thailand has no conception of food hygiene. I've been hospitalised twice by so called high end restaurants in Thailand,  the filth behind the scenes is unbelievable in some instances.

[Burma Bill]

51 minutes ago, Galong said:

Here's the thing: cannabis gives people the munchies, and that usually means more business for restaurants. Plus, a lot of tourists love that they can enjoy cannabis in Thailand, making it another reason for them to visit.
 

So, if Thailand bans liberal cannabis use, it could make things even tougher for Thai restaurants. It’s a bit of a double whammy, potentially cutting off a source of business and taking away a draw for tourists who come here partly for the cannabis.

 

I would certainly NOT eat at a restaurant serving Cannabis in my meal! Perish the thought! I prefer fresh fruit and vegetables, not weed, from local farmers!

[DrPhibes]

50 minutes ago, newnative said:

Tougher year than the 'pandemic era'?  Totally doubt that.

Ya, me too! I spent Jan - end of April on Lamai Beach (absolutely deserted) right on the beach at Pearl of Lamai (my big window looked right at the little island with the outdoor "gym" on it) during the height of COVID (country was basically closed to get in).  Was the only guy in the resort for almost all of my stay, $500 USD per month for their only 2 bdrm place (they just needed to keep the lights on) with a 7/11 right next door and a Family Mart across the road.  By the end of Feb, the 7/11 closed as well as almost all of the restaurants nearby.  If it was not for New Hut (been there forever!), Tropical Toe-nees (thanks again you guys!), Tips Tacos, Live India (been there forever!) and a few other restaurants, would have been a very poor experience.  Have to say, walking from the north of Lamai down to Grandmother and Grandfather Rock without running into another living sole most days was surreal.  

[DrPhibes]

28 minutes ago, Burma Bill said:

 

I would certainly NOT eat at a restaurant serving Cannabis in my meal! Perish the thought! I prefer fresh fruit and vegetables, not weed, from local farmers!

Wife is from Issan, cannabis is used in a couple of dishes there as a normal thing.  Helps with digestion and indigestion.  I worked in Shanghai in '87 and came down with serious stomach pains, cannabis dried and rolled up tight into a spherical pill was what was given to me.  Fixed me right up without any real psychotropic side effects.  

[Keeps]

11 minutes ago, DrPhibes said:

Ya, me too! I spent Jan - end of April on Lamai Beach (absolutely deserted) right on the beach at Pearl of Lamai (my big window looked right at the little island with the outdoor "gym" on it) during the height of COVID (country was basically closed to get in).  Was the only guy in the resort for almost all of my stay, $500 USD per month for their only 2 bdrm place (they just needed to keep the lights on) with a 7/11 right next door and a Family Mart across the road.  By the end of Feb, the 7/11 closed as well as almost all of the restaurants nearby.  If it was not for New Hut (been there forever!), Tropical Toe-nees (thanks again you guys!), Tips Tacos, Live India (been there forever!) and a few other restaurants, would have been a very poor experience.  Have to say, walking from the north of Lamai down to Grandmother and Grandfather Rock without running into another living sole most days was surreal.  

I'm off to Lamai on Monday. First port of call is tropical toe-nees as he always requests Robinson's apple and blackcurrant squash to put in his pint of 'Snakebite'. Gives me one of his homemade sausage rolls in return. 😁

[daveAustin]

Thai Restaurants Face Tougher Year Than Pandemic Era
 

Too many, too expensive. 

[Espanol]

5 hours ago, rupa said:

They want to make up for the losses made during the Covid-19 period in a year and they increased the prices by 15-25%, resulting in no more tourists...

 

A well-known budget restaurant in Jomtien raised its menu prices by 50% in 2024 and now by another 10% in 2025.
It's normal for prices to rise every year, but if they skyrocket, it's also normal for customers to stop coming.

 

[spidermike007]

I realize inflation is a factor here and the cost of doing business is going up for restaurants, but raising prices and making portions smaller is not helping their cause. 

[KhunLA]

You need to be serve up some very good food, at market prices.  Or be in a high traffic area.  Own building or have low rent (night market), to survive.

 

With limited parking, even for MBs, I don't know how they survive.   Tourist area rents are looney tunes, even in the night markets.  We avoid tourist areas, as vendors aren't going for the repeat customer, so their silly prices don't come with quality food or customer service.   Our experiences anyway.

 

Scamdemic pointed that out, as the only vendors open on Phuket during, were our favorites over the years, and consistently good, and catered to the locals, not the tourist.   Even though they were surfside.

 

Lived in Udon Thani 17 years, and ate out quite a bit, and very few lasted more than 1st year's rent, if that.  Failures were amazing, and more so with farang managed vendors.  Even ones that put out tasty food.  Rents, overhead, no parking, and simply can't put out enough servings per day, to cover cost & make a profit.

 

2 of the best restaurants I've eaten at, in TH, even closed, as locals & expats wouldn't support the price for higher quality food & service.  Seemed more than happy with lower priced, lower quality food elsewhere, in a crap, non AC'd, noisy, smelly location.  Mind boggling.

 

The complainers are best, but won't spend a few baht more for quality and or pleasant setting.  Heard it all the time on local forum at UT.

 

I'm a thrifty kind of guy, but geez, don't mind spending a bit more, once a week for a relaxed, decent meal out of the house.  Sadly, rarely do where we are, as not many vendors here provide, or even have AC   

[angryguy]

3 hours ago, Toby1947 said:

Even as a tourist I tend to prepare my own food, Thailand has no conception of food hygiene. I've been hospitalised twice by so called high end restaurants in Thailand,  the filth behind the scenes is unbelievable in some instances.

This is my experience. Think of the worst case scenario, like raw chicken. It happens