Photo courtesy of Samurai Gourmet
Thailand's restaurant industry is grappling with a severe downturn, with consumer purchasing power plummeting by over 40% in early 2025, according to Thanivarn Kulmongkol, President of the Thai Restaurant Association. As economic recovery slows and incomes stagnate, consumers are prioritising savings over dining out, exacerbating financial strain on eateries.
This decline affects a wide range of establishments, from independent restaurants to food stalls in malls, all scrambling to stay competitive. With customer reluctance to purchase meals priced over 80 baht, many restaurants have resorted to slashing prices to 40-50 baht per dish.
Competition intensifies with the rise of Chinese-run "zero-dollar" restaurants offering cheap meals, putting additional pressure on local businesses. The industry, valued at 700 billion baht, is seeing frequent closures, underscoring the cutthroat market conditions.
A glimmer of hope lies in the upcoming Songkran festival, which traditionally boosts sales as families reunite to celebrate. Furthermore, the government plans to introduce a digital currency scheme, worth 10,000 baht, targeting young people. If successfully implemented, this could inject much-needed spending power into the economy.
However, the digital nature of the currency poses challenges, particularly in a market reliant on cash. Restaurants may hesitate to participate, potentially dampening the initiative's impact.
As restaurants await these potential lifelines, uncertainty remains. Whether Songkran festivities and digital currency can counteract the downturn is yet to be seen, as the industry continues to battle through challenging times, reported The Thaiger.
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