The government’s 44-billion-baht “Khon La Khrueng Plus” co-payment scheme comes just in time to lift the restaurant sector amid the country’s economic slowdown, says the Restaurant Association.
Slated to run from Oct 29 to Dec 31, the scheme offers a 2,400-baht subsidy for individuals registered in the tax system, while those outside the system receive 2,000 baht each, with a daily spending cap of 200 baht.
“The scheme arrives at the right time as the economy is sluggish, with consumers more cautious with their spending,” said Chanon Koetcharoen, president of the Restaurant Association.
While mom-and-pop stores and other small businesses such as massage parlours and nail salons are also eligible to participate, Mr Chanon said based on past stimulus packages, the measure could increase restaurant sales by around 30% compared with non-stimulus periods.
He said the scheme could influence consumer habits, encouraging people to order more per visit or dine out more often.
Some groups dining together might split their bills to maximise their subsidies, reducing the cost per person, said Mr Chanon.
Local media reported some restaurant owners are hesitant to join the scheme due to fears of potential audits for retroactive taxes.
He said there are some concerns over this issue, but added he expects most small restaurants to participate as the scheme is likely to increase their income.
For the fourth-quarter outlook, Mr Chanon said there was a mix of positive and negative factors.
On the positive side, the start of fiscal 2026 is expected to facilitate budget disbursements that could further stimulate economic growth. Moreover, the tourism sector has entered its high season, which typically supports the restaurant industry.
From Jan 1 to Oct 5 Thailand recorded 24.5 million foreign visitors, a 7.5% year-on-year decline. The top five source markets were Malaysia, China, India, Russia and South Korea, according to the Economics Tourism and Sports Division of the Tourism and Sports Ministry.
Mr Chanon urged the government to act quickly to address Thailand’s negative tourism image.
He said the restaurant industry continues to face high raw material costs, especially for pork.
Furthermore, the sector is struggling with a labour shortage. Many restaurants already pay above the minimum wage. With the Vegetarian Festival in late October and year-end celebrations, the demand for workers will rise, leading to further increases in wages that pressure labour costs, said Mr Chanon.