BANGKOK – A recent survey from Line Mani, asking 1,800 people, found restaurants in Thailand are facing a tough stretch. Many are seeing less money coming in, while the costs for ingredients and workers keep climbing. However, Online food delivery is still growing.
Its share went up from 25% in 2023 and is on track to reach 29% by 2025. Even with this jump, the extra online sales aren’t enough to make up for drops in restaurant dining, according to Line Man Wongnai’s data. Kasikorn Research Center expects the food and drink industry to slow down in 2025.
The main reason is Thailand’s weak economy. The market’s value should hit 646 billion baht this year, which is only a 2.8% rise from last year. This is lower than the earlier forecast, which called for 4.6% growth and a total of 657 billion baht.
Yod Chinsupakul, CEO of Line Man Wongnai, noted that local restaurants are squeezed by falling in-person sales and higher expenses for food and workers.
The Thai Restaurant Association reports that daily income for many restaurants has fallen by over 50%, with monthly earnings dropping from 50,000 baht to only 20,000 baht. Same-store sales in restaurants dropped 14% from 2024 to 2025, which is a bigger fall than the 3% dip seen between 2023 and 2024.
Fewer New Restaurants
Many owners are opening new branches to make up for weaker sales in existing spots. The prices for ingredients have jumped about 25%, and wages are up around 5%. Fewer tourists, especially fewer travellers from China who usually spend big on food, have added to the pressure.
Fewer new restaurants are opening each year. In the first half of 2023, about 96,000 new spots opened. That dropped to 63,000 in 2024, and just 44,000 so far this year. About half of new restaurants now shut their doors within their first year.
The Line Man Wongnai survey found that most people want fast and easy ordering. Seventy-two percent want a variety of ways to order. Sixty-six percent prefer multiple payment choices such as QR codes, debit and credit cards, or e-wallets.
Around 60% place high value on speedy service, from ordering to payment. Yod suggested a four-step plan for restaurants to stay strong and grow. First, owners should use technology to boost sales and trim expenses.
Online orders keep growing, projected to reach 29% of total sales in 2025, up from 25% in 2023. This could help make up for some of the lost in-person sales.
Digital Payment Systems
Businesses should bring in digital ordering and a range of no-cash payment options. Digital payments are now more common in Thailand, rising from 36% to 50% over two years. The average size of digital transactions is 32% higher than cash.
Second, restaurants should consider expanding their business. Quick service restaurants, where customers pay before they eat, are seeing growth. At the same time, full-service spots are in decline. Big local brands like Suki Teenoi have shown that opening new locations quickly can work well.
Running several branches calls for strong management and smooth day-to-day operations.
Third, keeping accurate records is important. Most Thai restaurants are sole proprietorships, with only 4% set up as full companies. This often means poor bookkeeping. Good financial records help small businesses get loans for new tech or growth.
Fourth, government support is important, but the type of help should match business size. For larger restaurants, tax perks and policies can help them expand abroad or enter the stock market.
Coffee Businesses Thriving
Medium-sized places could benefit from government co-payment schemes, like those used in tourism. For small restaurants, direct support such as tax breaks for buying business tools or software could give them a much-needed boost.
Yod said the restaurant sector is at a turning point. By using tech, growing with smart business models, improving their records, and getting the right government support, owners of restaurants can push through this tough time and prepare for a better future.
While restaurants have seen a drop in sales, coffee businesses in Thailand are thriving. The affordable specialty coffee segment, with prices under 100 baht per order, is the fastest-growing. Sales are up 46% in Bangkok and 19% in other provinces.
Even though the number of new coffee shops dropped from 7,000 in the first half of 2024 to 5,000 this year, coffee shops are surviving longer than restaurants. Their first-year closure rate is 43%, compared to 50% for restaurants. Matcha shops are also doing well, with current shops seeing a 28% rise in sales.
Sales from delivery apps are growing for coffee, too. Line Man reports coffee orders up 23% year over year, and delivery now makes up 22% of average coffee shop income. This highlights how important it is for businesses to offer different ways for customers to buy.
