On 7/22/2025 at 7:15 PM, Dan O said:

You cant survive giving away 20 to 30% of order values (thats 50% of the normal operating mark up required just to cover operating cost) to delivery companies as you lose money on that order unless you inflate the price to the customer, which chases many away

 

This is something I've wondered about. Some restaurants must be selling at a loss, but it isn't a loss leader that can be offset by other purchases because the customer doesn't set foot in the establishment.

 

Restaurants closing down is nothing new.  This is how franchises and big money take over. They're the ones with deep enough pockets to weather downturns. 

7 hours ago, flaming dragon said:

 

This is something I've wondered about. Some restaurants must be selling at a loss, but it isn't a loss leader that can be offset by other purchases because the customer doesn't set foot in the establishment.

 

Restaurants closing down is nothing new.  This is how franchises and big money take over. They're the ones with deep enough pockets to weather downturns. 

In general terms one of the key metrics in running a resturaunt is on cost of goods (ingredient for food and drink). Costs

should be between 30 to 35 % of sale price, the closer to 30% the better.  That 65% difference between cost and price offsets and pays your other expenses like fixed cost; rent, utilities, phone and salaries, taxes licesences, etc. (There are % targets for each area to show your efficiency of management but almost no thais manage business in this way. If you give away 20 to 3o% of your order price to line or grab or whoever its almost impossible to recover enough to pay your expenses unless its just 1 or 2 dishes. Lost leaders  only work when people buy enough other items to compensate. That's not happening in an economy like here in thailand. Tourist may be able to afford increased prices or extra add on item purchases but locals who make up the majority of the customer base in the rest of the country cant do that. Also your losing that same % on those other add on if they are part of your delivery order.

 

Add an increase last year of 20% inflation on cost of good and about 7 or 8% this year and then the fees for deliver and your done. If your metrics in all areas are correct your doing good if you can capture a 5% profit.   Do the math. Most thai resturaunts (not noodle carts) are living in the house that's the resturaunt which helps but its basically subsistence living. That's part if why household debt is so high and defaults and failures are so high. 

On 7/23/2025 at 8:23 AM, KhaoHom said:

Street food 👍

Food court 👍

 

Changs outside the 7.

 

British pensioner? 

3 minutes ago, Packer said:

 

Changs outside the 7.

 

British pensioner? 

 

American

 

I live as a Thai in central BKK, and accept the country on its own terms.

On 7/22/2025 at 4:15 PM, snoop1130 said:

Quick service restaurants (QSRs) are a viable path forward. "Full-service dining is fading. Brands like Suki Teenoi show how growth can be achieved," observed Yod.

 

Street food???!

 

🤣🤣🤣

Pizza aside, Thai don't eat in western restaurants unless they are prostitute rental girlfriends that are dragged there by their hapless renters. These are going down in a blaze of indifference.

 

Always have to chuckle foreigners paying 200 baht for hamburger. The same amount of meat prepared in a Thai dish would cost 60 baht. Fries 80b, rice at 5b

 

I think the most distressing news here is that all of those whale bellied Englishmen might not get their pick of Sunday carverys any longer in Pattaya. Boo hoo

 

I for one would be ecstatic if all Western food aside from pizza disappeared from Thailand entirely.  Think of all the mugs that would be running for the border. Paradise restored!❤️

On 7/22/2025 at 4:15 PM, snoop1130 said:

The once-thriving industry now faces potential collapse, as daily revenues fall over 50% according to the Thai Restaurant Association.

It's not collapsing, but there is a fine line between keeping customers happy or driving them away with prices and portion size.

The problem is that you can't have restaurants/eateries/ coffee shops on every corner... before covid there were 2 pizza places in the little town where I live, now there are 8. And with cafés and coffee shops it's even worse... when I moved here 10 years ago there were only 5-6, now there are over 60. Not to mention 7-11... that now also serves food and coffee... they have gone from 2 to 11 shops (I found one I didn't even know about just the other day)?!

Spanska.

Is it not just in the restaurant industry that they do this, but also if they are going to sell a car/motorcycle and it doesn't sell, they increase the price and think they will get more buyers then?

Posts using a foreign language have been removed as this is an English language forum.

I feel for Thai Restaurants and it is a issue all over the world.High rents,high government taxes high food costs,wages hence people eat at home. I see many farangs buying cheap food and beer at 7/11 stores.Foreign food in Thailand is just crazy prices something the Government could change with reduced taxes 

On 7/25/2025 at 2:17 AM, Dan O said:

In general terms one of the key metrics in running a resturaunt is on cost of goods (ingredient for food and drink). Costs

should be between 30 to 35 % of sale price, the closer to 30% the better.  That 65% difference between cost and price offsets and pays your other expenses like fixed cost; rent, utilities, phone and salaries, taxes licesences, etc. (There are % targets for each area to show your efficiency of management but almost no thais manage business in this way. If you give away 20 to 3o% of your order price to line or grab or whoever its almost impossible to recover enough to pay your expenses unless its just 1 or 2 dishes. Lost leaders  only work when people buy enough other items to compensate. That's not happening in an economy like here in thailand. Tourist may be able to afford increased prices or extra add on item purchases but locals who make up the majority of the customer base in the rest of the country cant do that. Also your losing that same % on those other add on if they are part of your delivery order.

 

Add an increase last year of 20% inflation on cost of good and about 7 or 8% this year and then the fees for deliver and your done. If your metrics in all areas are correct your doing good if you can capture a 5% profit.   Do the math. Most thai resturaunts (not noodle carts) are living in the house that's the resturaunt which helps but its basically subsistence living. That's part if why household debt is so high and defaults and failures are so high. 

You can solve that easy fixing different prices for meals to be delivered or eating in the restaurant or take away. King Kong burger do that, for instance. You can find higher prices in Line than at the restaurant. 

 

But it seems that many restaurants are using Line prices even for customers eating at the restaurant. 

 

 

On 7/23/2025 at 2:51 AM, riverhigh said:

Running a restaurant has always been a precarious business. Collapse, I think not!!! People are lazy by nature. Last Sunday it was pouring with rain in Bangkok, most of the traffic comprised of motor bikes delivering meals.  People stuck in their homes with all the time in the world to cook a meal, but heck no, they had to order in. Too busy working on the internet ... so they say, 

Thousands of Thais living in apartments don't have a kitchen. They never cook 

5 hours ago, Espanol said:

You can solve that easy fixing different prices for meals to be delivered or eating in the restaurant or take away. King Kong burger do that, for instance. You can find higher prices in Line than at the restaurant. 

 

But it seems that many restaurants are using Line prices even for customers eating at the restaurant. 

 

 

you appear to not have any real experience in running a restaurant especially in a foreign country and outside a resort area or the capital.

 

You can have different pricing structures and drive away customers as a result. The line and grab delivery was a novel idea as a result of covid. Home delivery has always been available, but it was based around the restaurant using their staff where line and grab you have to pay them 20 to 30 % of the order value to use their online service ordering through them. thats up to 50% of your profit gone for the sake of getting an "extra" order and not relying on foot traffic. You do that enough and you have no money to pay expenses real fast or you lose money every month. Most non franchised chain restaurants are run out of the home they live in and they take no salary, its just subsistence selling. Delivery is here to stay now just like Lyft and Line and other personal taxis and many other things to suck you money away

On 7/23/2025 at 10:42 AM, McTavish said:

There are simply too many restaurants.  Attrition is inevitable if poorly located, badly managed and overpriced.

 

Chiang Mai has one restaurant which always provides top service, quality western and thai dishes at realistic prices.  Kwan's Kitchen also has adequate parking, air-conditioning and service with a smile.  A large bowl of delicious Rardna gai with fresh vegetables will set you back 97 baht.

 

Some former favourites closed during covid and never reopened. 

 

Ozark and Amataros are 2 great eateries where we enjoy farang food, slightly off the beaten track, but well worth the patronage.

A dish of Rad-Na 97 baht, in my rural area we can get a Rad-Na for no more than 50 baht, but saying that, me and the wife had a very average Pak-Grabow, 60 baht /dish, it was lunch time we were the only ones they, wonder why.

As has been said just to many food outlets, Thais think they cannot do anything else, lets sell food ,half the wife's family do that, her niece is ok, been selling noddle's for 10 years now ,she is wise and keeps her prices down, always customer's in they,does all right.

 

Rip off service charges and VAT is a complete con. Up there with tipping in America - at least work staff keep their tips there. 

On 7/23/2025 at 8:51 AM, riverhigh said:

Running a restaurant has always been a precarious business. Collapse, I think not!!! People are lazy by nature. Last Sunday it was pouring with rain in Bangkok, most of the traffic comprised of motor bikes delivering meals.  People stuck in their homes with all the time in the world to cook a meal, but heck no, they had to order in. Too busy working on the internet ... so they say, 

Bike delivery has killed restaurants since covid they take 30% of the ticket and now own many of their own outlets, many Thais are cooking at home unlicensed and using Bike companies to make survival 

They cannot survive making food after paying commission. 

I see falangs buying up large at macro, cooking at home now. 

Closed my restaurant 6 months ago after many years ,died after covid and Bike delivery. 

Plus food price hikes, imported food is a joke, government is wiping the floor with taxes on imported food and wine 

On 7/23/2025 at 12:34 AM, geisha said:

Food courts are packed to the rafters.

i like a good restaurant and evening drink, but once a week for nice wine choice and food.

 

Nothing like washing down a food court meal with a bottle of cheap rice liquor and my homeless paramour grinding on my lap.  Families and pearl clutchers be damned. 

On 7/25/2025 at 7:55 AM, KhaoHom said:

Pizza aside, Thai don't eat in western restaurants unless they are prostitute rental girlfriends that are dragged there by their hapless renters. These are going down in a blaze of indifference.

 

 

 

Interesting, I had dinner last night at a Taco restaurant, it was packed with locals... I was the only foreigner customer.

3 hours ago, kiwikeith said:

Bike delivery has killed restaurants since covid they take 30% of the ticket and now own many of their own outlets, many Thais are cooking at home unlicensed and using Bike companies to make survival 

They cannot survive making food after paying commission. 

I see falangs buying up large at macro, cooking at home now. 

Closed my restaurant 6 months ago after many years ,died after covid and Bike delivery. 

Plus food price hikes, imported food is a joke, government is wiping the floor with taxes on imported food and wine 

You are right on the money, its a lot more difficult under normal conditions tha. People think. Now throw in 20%+ inflation on ingredients last year and another 7 or 8% this year.  We've repositioned our pricing and menu 3 times last year and I'm doing it again now.  

On 7/27/2025 at 8:48 PM, kickstart said:

A dish of Rad-Na 97 baht, in my rural area we can get a Rad-Na for no more than 50 baht, but saying that, me and the wife had a very average Pak-Grabow, 60 baht /dish, it was lunch time we were the only ones they, wonder why.

As has been said just to many food outlets, Thais think they cannot do anything else, lets sell food ,half the wife's family do that, her niece is ok, been selling noddle's for 10 years now ,she is wise and keeps her prices down, always customer's in they,does all right.

 

50 baht    crikey mate, that's a rip-off.  30 baht in the wife's village 

 

50 baht only buys crap at a BigC foodcourt     I like quality, clean and tasty food which Kwan's Kitchen has been serving for over 8 years.

 

I agree with others re Food Delivery, it's ruined many a good restaurant and there's often no knowing what quality and hygiene are like.  Hopefully it will go the way of Airbnb and decline in popularity.  Though knowing how lazy some ppl can be it will probably continue in Thailand at least.

so less chance of food poisoning