The increasingly competitive nature of Thailand’s food industry has spurred restaurant operators to adopt inventive strategies. They are now focusing on adapting to shifts in consumer preferences and lifestyle changes, ensuring their businesses remain competitive and continue to grow, as noted by the leader of a prominent conglomerate.
Nath Vongphanich, who heads Central Restaurants Group, estimated the restaurant market in Thailand to expand by 5 to 7% within this year, reaching a value of approximately 480 billion baht.
The Thai economy is demonstrating encouraging signs of growth, buoyed by the export and tourism sectors. The period from January 1 to April 14 saw Thailand playing host to 10.7 million foreign visitors, as reported by the Economics Tourism and Sports Division of the Tourism and Sports Ministry.
However, Nath warned of certain challenges, such as escalating household debt and rising expenses, like logistics. He also pointed towards the need to monitor China’s economic situation, which could potentially impact Chinese tourist arrivals to Thailand. Other concerns include increasing geopolitical tension and economic uncertainties related to key trading partners, such as the US, and the ongoing elections in Russia and India.
In light of the current landscape, Nath identified three emerging trends in the restaurant industry. Firstly, there is a shift back to traditional sales channels. During the pandemic, the company saw 30% of its sales coming from delivery channels, a figure that has now decreased to 20%, a ratio Vongphanich deems appropriate.
Secondly, there is a noticeable change in customer preferences. There is an increasing demand for unique culinary experiences and a taste for more premium dishes.
This trend has allowed restaurant owners to tweak their menu offerings according to evolving customer tastes. Furthermore, there have been notable changes in dining habits. An increasing number of restaurants now cater to late-night diners, a service previously offered mostly by fast-food chains.
Changing consumer style
Another significant shift is in the customer demographic. As family sizes reduce and single-person households become more common, restaurants need to devise appropriate strategies, reported Bangkok Post.
Nath noted that technology has started to play a crucial role in the restaurant industry. Many establishments use tech solutions to streamline order taking, whether at the table, counter, or via a kiosk, and also to facilitate contactless payments.
However, these changes pose a challenge for some senior customers who struggle with digital technology, necessitating the continued provision of conventional in-person services.
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