Thailand’s once-vibrant restaurant scene is in hot water — and not just in the kitchen. A toxic mix of soaring costs, shrinking foot traffic, and underwhelming tourism has left the Thai food industry on the verge of collapse.
Many eateries are bleeding cash, with daily revenue dropping by more than 50%, according to the Thai Restaurant Association.
“Restaurant owners are under immense pressure,” said Line Man Wongnai CEO Yod Chinsupakul.
Offline dining is drying up fast. Same-store sales between 2024 and 2025 have plummeted by 14% — a sharp contrast from a 3% dip the year before. And while food delivery is growing, expected to rise from 25% of all sales in 2023 to 29% by 2025, it’s not enough to plug the revenue gap.
Kasikorn Research Centre slashed its 2025 forecast for the food and beverage sector from 4.6% growth to just 2.8%, predicting a market value of 646 billion baht — down from the earlier estimate of 657 billion baht.
Restaurants are battling a 25% surge in raw material costs and a 5% rise in labour wages. Meanwhile, Chinese tourist arrivals — once a reliable source of restaurant traffic — remain sluggish.
The number of new restaurant openings has crashed too: from 96,000 in early 2023 to only 44,000 this year. Half of these businesses are expected to shut down within a year.
To survive, Yod suggests a four-step strategy. First, embrace tech. Digital ordering and non-cash payments are in high demand, with QR code and e-wallet usage now 32% higher per transaction than cash.
Second, pivot towards scalable models like quick service restaurants (QSRs).
“Full-service dining is fading. Expansion-ready brands like Suki Teenoi show how rapid growth can be done right,” he said.
Third, get serious about financial data. With 96% of restaurants operating as sole proprietorships, most lack proper bookkeeping, making it harder to secure funding or adopt new tools.
Lastly, the government must step in. Yod urges targeted tax breaks and support schemes to help small and medium-sized restaurants adapt and expand, reported Bangkok Post.
On a brighter note, coffee is brewing up success. Sales in Bangkok’s affordable speciality coffee segment (under 100 baht) soared 46%, with delivery now making up 22% of revenue. Matcha is also buzzing, with shops reporting 28% growth.
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