Thailand's political deadlock affects restaurant owners

[webfact]

Political deadlock affects restaurant owners

BANGKOK, 21 May 2014 (NNT) - Restaurant owners have struggled financially amid the political turmoil that has dragged on for more than six months.

Thaniwan Koonmongkon, the President of the Thai Restaurant Association, revealed that restaurants nationwide have lost an average of at least 30 billion baht in revenue during the last six months.

As a way of cutting down costs, many restaurants had to lay off at least 30 percent of their employees. Most of those who were laid-off held high-ranking positions and received a handsome salary.

Restaurant owners who were desperate also turned to borrow money from informal lenders, as banks have been more vigilant in giving out loans to customers.

Ms. Thaniwan stated, “Even though the restaurant industry hasn't been directly affected by the political conflict unlike other industries, the lower number of tourist arrivals has generated lesser revenue in return.”

Meanwhile, Ms. Pattama Kareeklin, the Sales and Marketing Manager for the Blue Elephant Cooking School and Restaurant, declared that the restaurant’s profit margins have declined as much as 20 percent.

She said that at least 70 percent of the customers were foreigners who have refrained from traveling to Thailand. Forty percent of tourists have also chosen not to attend the school’s cooking classes as well, as they remained unconfident about Thailand’s political impasse.


-- NNT 2014-05-21

[laurentbkk]

oh I am sure the figures from the TAT will be very different ....

[noddy77]

Its not just Restaurants, the Bar trade has copped an even bigger flogging.

I estimate Bar sales down at least 50%.

Very tough out there at the moment and has been since all this started.

[daveAustin]

Ms. Pattama Kareeklin, the Sales and Marketing Manager for the Blue Elephant Cooking School and Restaurant, declared that the restaurant’s profit margins have declined as much as 20 percent.

She said that at least 70 percent of the customers were foreigners who have refrained from traveling to Thailand.

Don't mean to sound cynical (it must be a killer for those in the service industry), but as a foreigner this almost makes me feel wanted.

[smedly]

perhaps people are eating out less as costs rise

another probable effect of the minimum wage and inflation - food prices have risen as much as 50% in some sectors the last 2 years

I'd treat the OP with a pinch of salt

[marsipan]

My girlfriend has a small restaurant in CM with thai and farang food. On a average day she had 30-40 customers who loved the food and the place. Now? If she is lucky 10 customers a day. Its been like this for months here in chiang mai

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[wilgoster]

Down South here, ... you'd never notice.

[Jack Mountain]

And when the tourists comes in again then the foreign bar owners are so happy to see them that they double their prices .... i wish them something.

[samjaidee]

"Thaniwan Koonmongkon, the President of the Thai Restaurant Association, revealed that restaurants nationwide have lost an average of at least 30 billion baht in revenue during the last six months."

How is that possible? Does the journalist who wrote it know what the word average means?

How many restaurants have a average of 30 billion baht turnover in good times let alone losing an average of 30 billion baht?

[lordblackader]

My girlfriend has a small restaurant in CM with thai and farang food. On a average day she had 30-40 customers who loved the food and the place. Now? If she is lucky 10 customers a day. Its been like this for months here in chiang mai

Sent from my GT-I9082L using Thaivisa Connect Thailand mobile app

This.

A little Japanese BBQ Chicken place just up from where I live closed there doors this week.

Some of my favourite CM places which last year were hard to get a seat in are empty, often with the staff sitting around outside waiting for a customer.

As much as we're coming into tourist low season it has gotten really really quiet of late, particularly compared to the same time last year.

[3NUMBAS]

send the bill for damges to monkeyman Suthep and his nutters

[Bangmod]

So now they are feeling what the farmers have been feeling for so long under the corrupt PT governments..

[Frank James]

This is troubling news. May this madness end, and good times and people return. I usually eat in little local joints, but one night a few years ago a group of us had a wonderful evening dining at the world famous (and deservedly so!) Blue Elephant Restaurant in Bangkok. A night to remember, with perfect food and flawless, old time service and atmosphere.

[ggt]

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My girlfriend has a small restaurant in CM with thai and farang food. On a average day she had 30-40 customers who loved the food and the place. Now? If she is lucky 10 customers a day. Its been like this for months here in chiang mai

Sent from my GT-I9082L using Thaivisa Connect Thailand mobile app

This.

A little Japanese BBQ Chicken place just up from where I live closed there doors this week.

Some of my favourite CM places which last year were hard to get a seat in are empty, often with the staff sitting around outside waiting for a customer.

As much as we're coming into tourist low season it has gotten really really quiet of late, particularly compared to the same time last year.

Be careful what you wish for...insulting the Chinese by not allowing them to run amok at Chiang Mai U...posting unfriendly signs around the city reflecting a general dislike for farang bars and clubs...want to "take back Chiang Mai"...well you have it back now...good luck with paying your bills...

[blazes]

I suspect the drop in tourist revenue has less to do with the "troubles" in Thailand as a reflection of the very poor economic conditions all over the "western" world, and now that China seems to be winding down we can expect fewer tourists from there (which may not be a bad thing, of course). The economies of places like India and Brazil have gone down the toilet also. But above all, the lack of tourists is itself a reflection of the lies told constantly by official statistics all over the world.

For example, the "unemployment" rate in the US is officially 6.3%, but every American knows it is nearer 20%. And the backpack generation in Europe is up to 60% unemployed in many countries.

I doubt whether peace and quiet in LoS will restore the missing tourist bodies until or unless the economies of falang countries suddenly find the way out of their horrific mess.

[Prbkk]

The billionaires funding this lunatic campaign don't care about SMEs and any adverse impact on "small people" or employees. They could care less so long as they get their way.

[samtam]

As a way of cutting down costs, many restaurants had to lay off at least 30 percent of their employees. Most of those who were laid-off held high-ranking positions and received a handsome salary.

Restaurant owners who were desperate also turned to borrow money from informal lenders, as banks have been more vigilant in giving out loans to customers.

Ms. Thaniwan stated, “Even though the restaurant industry hasn't been directly affected by the political conflict unlike other industries, the lower number of tourist arrivals has generated lesser revenue in return.”

If laying off 30% of staff hasn't directly affected the restaurant industry, I don't know what has. This nonsense on top of the the "THB30 billion average loss" ? Whaaaat?

Edited May 21, 2014 by samtam

[marsipan]

My girlfriend has a small restaurant in CM with thai and farang food. On a average day she had 30-40 customers who loved the food and the place. Now? If she is lucky 10 customers a day. Its been like this for months here in chiang mai

Sent from my GT-I9082L using Thaivisa Connect Thailand mobile app

This.

A little Japanese BBQ Chicken place just up from where I live closed there doors this week.

Some of my favourite CM places which last year were hard to get a seat in are empty, often with the staff sitting around outside waiting for a customer.

As much as we're coming into tourist low season it has gotten really really quiet of late, particularly compared to the same time last year.

Be careful what you wish for...insulting the Chinese by not allowing them to run amok at Chiang Mai U...posting unfriendly signs around the city reflecting a general dislike for farang bars and clubs...want to "take back Chiang Mai"...well you have it back now...good luck with paying your bills...

What do you mean by insulting the Chinese? I never wrote something like that

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[marcusd]

oh I am sure the figures from the TAT will be very different ....

Out of likes..

SO TRUE though

[marcusd]

Its not just Restaurants, the Bar trade has copped an even bigger flogging.

I estimate Bar sales down at least 50%.

Very tough out there at the moment and has been since all this started.

Yes when I was in Silom it was not Hello welcome! It was screaming Price discount mister and telling me the price! and that was half of what they normally want

[Albertosez]

We are / were all tourists somewhere and at sometime. Yes, they get on your nerves after a while, even your own nationality can p*ss you off when you see them behaving " touristy !! " However, amongst otherthings, these troubled times in Thailand have highlighted what a " big hole " it creates in the economy once tourism is lost, - even for the working class folk ! Maybe Thailand should remind us all ( Farangs too ), that Tourists significantly enhance the economy of Thailand........and that helps pay for a lot of the things that we enjoy on a day to day basis ! Maybe some of the anti-tourist feeling amongst many needs to be more considered and put in perspective ?

[kimamey]

"Thaniwan Koonmongkon, the President of the Thai Restaurant Association, revealed that restaurants nationwide have lost an average of at least 30 billion baht in revenue during the last six months."

How is that possible? Does the journalist who wrote it know what the word average means?

How many restaurants have a average of 30 billion baht turnover in good times let alone losing an average of 30 billion baht?

I would think the 30 billion average was for the restaurant trade in general rather than individual businesses.

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[DrTuner]

It's said tourist industry counts for 6% of the GDP. But does any one have a clue what percentage of the Thai employment, especially low-end jobs, does tourism count for ? Wikipedia mentions some figures from 2007, which have likely changed a lot:

In 2007 the service sector (which includes tourism, banking and finance), contributed 44.7 percent of GDP and employed 37 percent of the workforce.

37% when combined with banking, finance, education and hotel and restaurant sectors. And the tourism sector has grown at a very fast pace since 2007. I'd say it's a significant source of jobs.

Eradicating the tourists could lead into higher unemployment, which will then spread into civil unrest, lower purchasing power and eventually cause problems for the middle class and so on.

Edited May 27, 2014 by DrTuner

[heybruce]

"Most of those who were laid-off held high-ranking positions and received a handsome salary."

With the curfew the places that do most of their business in the evening have seriously cut the hours of their low-paid employees; soon these places will close and all employees will be laid-off. It's not just the well paid who are suffering.

[Thai at Heart]

"Thaniwan Koonmongkon, the President of the Thai Restaurant Association, revealed that restaurants nationwide have lost an average of at least 30 billion baht in revenue during the last six months."

How is that possible? Does the journalist who wrote it know what the word average means?

How many restaurants have a average of 30 billion baht turnover in good times let alone losing an average of 30 billion baht?

But their profit margin went down 20%. Pooof. Gone. Hahaha

It's OK, its only the Thai restaurateurs association. They don't declare 80% of their business anyway.

[Thai at Heart]

Handsome salary?

Chef in a local Thai restaurant?

Is she advertising for employees or interpreting figures?

[siddv]

The horror! What about the whore houses throughout the city and their world wide reputation.. Oh my .. Do u really thing we all come to Thailand to c the " cultural " sites.. Whatever those might be !!!

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[bigbamboo]

In times of trouble the first businesses to lose customers are restaurants of all kinds, especially those that sell mega buckets of fast, self-indulgent, unnecessary comfort food.

Except in America of course.