The restaurant industry is expected to revive going forward, driven by Thailand’s economic activity that has gradually returned to normal, along with recovery in the tourism sector. The number of Thai and foreign tourists which is on the rise, especially amid an expected surge in international tourist arrivals will support revenue generation in the restaurant business. Additional factors are marketing campaigns arranged by restaurants in partnership with online food delivery platform providers, and large-scale operators expanding their branch networks and adopting new foreign restaurant chains so as to reach new target customers.
However, the recovery of restaurants remains fragile due to limited purchasing power, while their operating costs continue to increase, particularly the prices of cooking gas and electricity which surged in line with global energy prices. Moreover, given the intensified competition among businesses, consumers enjoy a variety of food choices. This signals the need for operators to maintain caution in their new investments, while also focusing on operating cost management.
KResearch views that the sales growth of restaurant business will exhibit cautious optimism. The sales turnover of the restaurant industry in 2023 may reach THB 418-425 billion, growing 2.7-4.5 percent YoY (compared to estimated growth of 12.9 percent for 2022). The total value will still be less than pre-COVID-19 levels due to difficulties in the recovery of full-service restaurants. Meanwhile, even though street food stalls and limited-service restaurants have the potential to earn higher revenue than pre-pandemic levels, maintaining profitability remains a challenge for business operators.