Sharp drop in customers: Thai restaurant "starving for customers", owner sits on hot coals

(Dan Tri) - Tens of thousands of food service businesses in Thailand have had to close due to a sharp decline in international visitors as the country's tourism industry faces major challenges.

Every type of food business in Thailand, from street stalls to fine dining restaurants, is struggling amid a slump in tourism and the country's economy .

Famous Thai chef Thitid Tassanakajohn, also known as Chef Ton, commented that Thailand's F&B ( food and beverage) industry is facing many challenges at the same time.

Local restaurants are going through a tough time as direct sales have plummeted, while raw material costs have increased by up to 25% and labor costs have increased by about 5%.

The Thai Restaurant Association also reported that the average daily revenue of many restaurants has dropped from 50,000 baht/month (about 40 million VND) to only 20,000 baht (16 million VND).

The market also recorded a significant decline in the number of newly opened restaurants, from 96,000 (first half of 2023) to 63,000 (2024) and continued to decrease to 44,000 this year. In addition, up to 50% of new restaurants had to close after only one year of operation.

One of the factors that has a strong impact is the decline in tourists , especially Chinese tourists. This group of tourists is considered to be a group that spends a lot on food.

Many restaurants in Thailand complain about lack of customers (Photo: Bangkok Post).

Food and beverage areas that were once bustling with foreign tourists, such as around the Grand Palace in Bangkok, are now noticeably deserted.

“Not only street stalls, but also high-end restaurants are affected,” said Mr. Thitid.

Even Nusara Restaurant, which ranked No. 6 on the list of "Asia's 50 Best Restaurants 2025", and a series of sidewalk eateries just a few hundred meters from the Royal Palace, have recorded a decline in revenue.

While the number of tourists from Europe, the US and Israel may be increasing, according to Mr Thitid, this cannot make up for the absence of Chinese tourists, who are much larger in scale.

“We need travelers who can spend across all dining segments, from online food ordering, street food to fine dining and hotels,” he said.

It’s a long-standing view that high-end consumers are often the last to be hit in tough economic times, but Thitid has seen signs of softening demand in the fine dining segment since last year.

With the current gloomy economy, both individual and corporate customers are tightening their spending.

“Some people are now choosing to cook at home instead of going out. Companies are switching from high-end restaurants to low-cost eateries to save costs,” he added.

Slow trading scene at Khlong Lat Mayom floating market (Photo: Bangkok Post).

In May, Mr. Thitid’s restaurant group reported a 50% drop in revenue compared to the same period last year. He predicts the most difficult time for the Thai food industry will be July through September, the rainy season, when tourist numbers typically drop sharply.

However, this year the situation is worse than expected, as the decline began in May, causing early impacts on the economy. The owners of these restaurant chains themselves said that if their business does not suffer losses this year, they are lucky.

According to the Bangkok Post , the Thai food industry is going through a period of turmoil, with many restaurants facing a "starvation of customers". The Thai Ministry of Tourism and Sports said that in the first half of 2025, the country recorded only 14.4 million international visitors, down nearly 3% compared to the same period last year.

Thai media shared that Thai tourism is slowing down, reaching 35.5 million international visitors in 2024, but in the first half of 2025 it decreased by 4.6%.

Meanwhile, Vietnam and Malaysia have surpassed their pre-pandemic levels with 17 million and 37 million visitors, respectively. Although Chinese visitors to Thailand are expected to double by 2024, the trend is slowing sharply due to safety concerns and high costs. Vietnam and Japan continue to attract Chinese visitors.

The former head of the Tourism Authority of Thailand said that without improving security and strategy, Thailand will find it difficult to reach the 40 million visitor mark like in 2019.

Source: https://dantri.com.vn/du-lich/luong-khach-giam-sau-nha-hang-thai-lan-doi-khach-chu-ngoi-tren-dong-lua-20250730133605560.htm