On June 13, Thanivan Kulmongkol, President of the Thai Restaurant Association, stated that the restaurant industry continues to face widespread pressure from both domestic and global economic conditions. High operational costs, reduced tourist numbers, and intense competition have all significantly impacted purchasing power and sales, marking the worst decline in three years. Consumer spending has been dropping since late April, and the third quarter is expected to worsen dramatically. In provincial areas, purchasing power has dropped by 80%, and in Bangkok, over 50%. The industry is now hoping for a recovery in the final quarter of the year, with a potential influx of tourists starting in October.
“The third quarter will be a turning point. We'll see which businesses can survive. Many large restaurants that have relied on tourism for the past 10–20 years are expected to close, especially if the economy and tourist numbers don’t recover within the next 6 to 12 months. If they stay open, they will face heavy losses from rising fixed costs like ingredients and rent. Small and street food vendors are in even worse shape. For those in malls with binding rental contracts, promotions may be the only option to survive,” she said.
Thanivan also revealed that the association is working with Phon Aramwattananon, Chairman of the Thai Chamber of Commerce, on two initiatives. The first involves promoting participation in a low-interest loan program (3%) from the Government Savings Bank, designed to support restaurants lacking liquidity. The second initiative aims to link small restaurants with discounted agricultural goods from major producers or Chamber members—such as rice, oil, and meats—to reduce raw material costs. This program is expected to launch within the next 1–2 months.
She added that the upcoming government “Half-Half Co-Payment” tourism stimulus scheme, set for July, is a good idea for boosting low-season travel and spending. However, if the reimbursement process remains as complex and time-consuming as before, many restaurants may opt out due to the burdensome procedures.