Thailand’s street food and beverage industry is bracing for a prolonged period of economic uncertainty, as declining foot traffic and weakening consumer demand take a toll on key dining areas such as Banthat Thong. Operators are now adjusting their strategies to address these challenges, particularly as both local and Chinese patronage diminishes.
According to Paisarn Aowsathaporn, Senior Executive Vice President of Thai Beverage Public Company Limited—parent company of restaurant brands including Shabushi and KFC—the sector remains sizeable, estimated at nearly 700 billion baht. However, its growth trajectory is showing signs of deceleration, with forecasts pointing to a slowdown by 2025. This trend follows a recent report from the Department of Internal Trade noting that approximately 3,000 restaurants shuttered in the first quarter of the year. Although a similar number of new establishments opened during the same period, the data reflects an increasingly volatile landscape for food service operators.
While full-service and quick-service restaurants are still seeing comparatively stable performance, buffet-style dining is facing intensified competition. Paisarn noted that sukiyaki buffet restaurants, in particular, are engaged in aggressive price wars, a tactic he described as unsustainable. ThaiBev has chosen to avoid deep discounting, instead prioritizing consistent product and service quality as a core part of its brand strategy.
In parallel, The Minor Food Group’s The Coffee Club, which operates over 2,100 outlets nationwide, is also navigating the economic headwinds. General Manager Nongchanok Sathananon said that international tourists currently make up around 70% of the brand’s customer base. To mitigate seasonal fluctuations, the company is concentrating efforts on maximising revenue during peak tourism periods and maintaining break-even performance during slower months. Rather than pursuing rapid expansion, The Coffee Club has redirected its investment toward upgrading existing locations to improve ambiance and customer comfort.
One of the brand’s strategic goals includes increasing the proportion of local clientele from 30% to 40%, a move designed to ensure long-term business sustainability. Enhancements include reconfiguring store layouts to better accommodate solo diners, particularly students and professionals seeking a comfortable environment to study or work.
Despite economic challenges, companies such as ThaiBev and The Minor Food Group are focusing on customer experience, operational resilience, and measured innovation to navigate a shifting landscape in Thailand’s critical food and beverage sector.