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THAILAND LIVE Thailand Live Thursday 14 August 2025
Price Wars Unhealthy for Restaurants, Experts Warn Photo courtesy of Bangkok Post The ongoing price war in the restaurant industry has sparked concerns among experts and business leaders, who argue that it is not a sustainable approach for long-term growth. The Restaurant Association and marketing experts emphasise the need for strategic thinking amidst intense competition. Full Story: https://aseannow.com/topic/1369727-price-wars-unhealthy-for-restaurants-experts-warn/ -
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Report Price Wars Unhealthy for Restaurants, Experts Warn
Photo courtesy of Bangkok Post The ongoing price war in the restaurant industry has sparked concerns among experts and business leaders, who argue that it is not a sustainable approach for long-term growth. The Restaurant Association and marketing experts emphasise the need for strategic thinking amidst intense competition. In response to these price wars, Ake Pattaratanakun, head of the marketing department at Chulalongkorn Business School, has shared his insights on how businesses might navigate this challenging landscape. He highlights that the current economic downturn is influencing customer behaviour significantly. As people face tighter budgets and an uncertain economic environment, many are opting to cut back on dining out and instead cook at home. Mr Ake stresses that businesses need to adapt to these changing consumer preferences. "During this difficult period, customer behaviour may shift," he said. He suggests identifying real trends and modifying marketing strategies to better align with the evolving needs of consumers. Chanon Koetcharoen, president of the Restaurant Association, shares his concern over the price war, explaining how it benefits large chains but puts immense pressure on smaller businesses. Large chains, with their efficient cost management and bulk purchasing, can afford aggressive pricing that smaller, local restaurants simply cannot match. This results in smaller operators struggling to maintain slim profit margins and stay competitive. Mr Ake likens the ongoing price war to a "nuclear bomb", warning that it will ultimately harm all players involved. He advises businesses to adopt damage control measures if they find price reductions unavoidable. One strategy he recommends is to limit promotional pricing to specific occasions, such as brand anniversaries, and focus these discounts on loyal customers through membership programmes. This approach can potentially safeguard a brand’s perceived value while still offering competitive pricing options. Additionally, Mr Ake suggests creating separate sub-brands for budget-friendly offerings. This way, the core brand remains unaffected by the discounted image and continues to maintain its perceived value in the market. A significant warning coming from Mr Ake is that an extended reliance on discount strategies may irreversibly damage brand perception. If consumers get accustomed to lower prices, it becomes exceedingly difficult for businesses to revert to their original pricing structures without losing customer trust and engagement. In the face of these challenges, both Mr Ake and Mr Chanon urge the industry to rethink its current tactics. While price cuts might bring immediate customer traffic, the long-term consequences could be detrimental. Strengthening brand loyalty and focusing on unique value propositions might offer more sustainable paths forward for the industry. The call is clear: the restaurant sector needs to find a balance. Relying solely on price reductions is likely not the answer; instead, a strategic shift towards understanding and adapting to consumer needs will be crucial for businesses that seek to thrive in these economically challenging times. Adapted by ASEAN Now from Bangkok Post 2025-08-14 -
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Politics Paetongtarn Faces 29 Aug Verdict Over Leaked Hun Sen Call
very very true, dont you know who i am !!! -
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Politics Paetongtarn Faces 29 Aug Verdict Over Leaked Hun Sen Call
Daddy is is in hot water also...the whole Shin gang must go in disgrace ffs. -
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UK Cotswolds Chaos: Locals Revolt Against JD Vance’s Visit
“Right now, D.C. inquiries are up roughly 400% compared to the same period in 2024,” Crowds on Demand CEO Adam Swart told Fox News Digital, adding that the time period he is referencing is May to July 2024. The company always sees a spike in requests during what Swart calls “high-stakes political moments.” Swart said the “vast majority” of people at political or advocacy events in D.C. are in some way paid. I wonder if they opened a UK branch and contracted out to Ellen and Rosie? -
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