Restaurant-related associations have collaborated to tackle surging energy costs, fluctuations in raw material prices, and digital transformation.
A memorandum of understanding was signed by representatives from the Restaurant Association, the Night Restaurant Business Trade Association, the Digital Technology Entrepreneur Trade Association, the Thai Fresh Market Association, and the Federation of Thai Chefs.
The collaboration aims to connect restaurant operators with high-quality products at fair prices and to integrate advanced technology across the supply chain, from sourcing raw materials to cooking processes and points of sale.
The Thai Fresh Market Association will supply raw materials and help develop a smart logistics system to reduce hidden costs arising from energy prices.
Meanwhile, the Restaurant Association will gather members’ needs to strengthen collective bargaining power through pooled purchasing.
Chanon Koetcharoen, president of the Restaurant Association, expressed concerns over rising raw material costs. Vegetable prices have increased by around 10-20% on average. Seafood prices have risen sharply, depending on the source, while chicken and pork prices have increased slightly.
Moreover, food delivery platforms have raised gross profit (GP) charges for restaurants by around 1 to 2 percentage points compared to previous agreements.
Mr Chanon added that, on average, platform charges are 25-30%.
Restaurants are also struggling with surging packaging costs. For example, the price of disposable plastic food containers has increased from 65 baht per pack of 50 boxes to about 130 baht.
He called on the government to help control the prices of raw materials, including vegetable oil and cooking gas.
WEAK DEMAND
Mr Chanon said it is difficult to predict market conditions over the next three months, which mark the industry’s low season. He warned that the overall restaurant sector faces a more challenging outlook than usual due to ongoing uncertainty related to the conflict in the Middle East.
Typically, the restaurant industry’s low season runs from May to September, he noted.
“If fuel prices remain high, travel will decline, which will inevitably impact dining out,” he said.
Each restaurant segment is seeing changes in customer behaviour. He noted that sales at fine-dining restaurants and high-end bars have declined, while ordinary street food outlets remain resilient. This reflects consumers’ increased focus on “value for money” amid the current economic situation.
He added that, during the low season, restaurant operators typically reduce the number of part-time staff they employ.
Given the current economic uncertainties, Mr Chanon said it is difficult to predict whether restaurants will increase or reduce staffing levels this season.