Thai Eateries Poised for Growth Amid Cost Pressures

Despite rising costs, the Thai restaurant industry is expected to continue expanding this year, according to an executive of Central Restaurants Group Co Ltd (CRG). Nath Vongphanich, chief executive of CRG, anticipates the government's "Thai Chuay Thai Plus" co-payment scheme will help lift sales among small restaurateurs in the second half of 2026. He said the scheme is expected to boost Thai consumers' purchasing power while it is in effect, supporting industry growth. The scheme runs from June to September and should provide support to the industry during the low season, said Mr Nath. Eateries should also benefit from increasing foreign arrivals starting in October as the country enters its tourism high season. However, larger restaurant operators ineligible for the co-payment scheme may be affected as diners are expected to favour participating restaurants during the scheme, he noted. Thai restaurants and beverage stores are projected to tally revenue of 673 billion baht this year, according to a May analysis by Kasikorn Research Center. Low barriers to entry have encouraged new players to join the restaurant sector, a trend expected to continue into the latter half of the year and signal continued opportunities for market expansion, said Mr Nath. He also observed that the moo krata segment may be entering a period of sluggish growth. To survive in this competitive business environment, Mr Nath recommended that existing restaurant operators stay active by introducing new products or launching promotions. Operators must also prioritise managing their cost of goods sold, he noted. War in the Middle East has driven up logistics and raw material costs, with packaging expenses 10-15% higher than before the conflicts. CRG announced plans earlier this year to open 140-160 new stores in 2026. The company has launched more than 110 new stores year-to-date, according to CRG. Mr Nath said the company is proceeding with its expansion plans cautiously.