Thailand, March 26th, 2025 — Thaniwan Kulmongkol, the president of the Thai Restaurant Association, reported that the restaurant sector saw a sharp 40% decline in consumer spending in the first quarter of 2025 due to slow economic recovery and stagnant incomes.
Many consumers are cutting back on spending, saving instead for key festivals like the upcoming Songkran. Not only high-end restaurants but also food court outlets with prices above 80 baht have seen weak demand.
Restaurants may need to lower prices to around 40–50 baht per dish to attract customers. Competition has also intensified with the rise of low-cost Chinese-run “zero-dollar” restaurants offering competitive prices.
Thailand’s restaurant market, valued at 700 billion baht, remains highly competitive with frequent business turnover. However, industry leaders hope the Songkran holiday will drive increased spending and market activity.
This article originally appeared on our sister website The Pattaya News.
