While monitoring domestic purchasing power, Thai restaurant operators have adapted to stay competitive and grow their businesses in response to evolving customer preferences and lifestyles, says the head of a conglomerate.
"The food business in Thailand this year is highly competitive," said Nath Vongphanich, president of Central Restaurants Group.
He said the restaurant market in Thailand is projected to grow 5-7% this year, with a value of around 480 billion baht.
The economy shows positive signs, with tailwinds from the export and tourism sectors, said Mr Nath.
From Jan 1 to April 14, Thailand welcomed 10.7 million foreign arrivals, according to the Economics Tourism and Sports Division of the Tourism and Sports Ministry.
The sector is monitoring the impact of high household debt as well as increasing costs, such as logistics, which may pose a minimal challenge to the industry compared with last year, Mr Nath said.
More will also keep an eye on the economic situation of China, which may affect the number of Chinese tourists coming to Thailand, the escalating geopolitical tension, as well as the economic uncertainties of important trading partners such as the US, Russian and Indian elections, noted Mr Nath.
Mr Nath said the company foresees three emerging trends in the restaurant industry this year.
First, the sales channel is back to normal.
During the pandemic, 30% of the company's sales were from delivery channels, compared to only 20% at present, which he believes is an appropriate proportion.
Second, the customer preferences have changed with increasing demand for unique experiences and craving for more premium dishes, which allows restaurant owners to tailor their menu items in response to shifting customer preferences.
Moreover eating occasions have evolved significantly with changes in consumer habits.
In the past, the only restaurant chains which opened late at night were quick-service restaurants selling fast food like fried chicken or burgers.
More eateries are now eager to capture hungry night owls, Mr Nath said.
"In the past, we never thought people would want to travel to eat sukiyaki at 1am, but now at 2am we are at sukiyaki restaurants," said Mr Nath.
In addition, the customer demographic has changed, he said.
As family sizes shrink and single-person households increase, restaurants must prepare suitable strategies in response, said Mr Nath.
Third, restaurants have started embracing technology solutions to help with taking orders such as at table-side, at the counter or via a kiosk, as well as processing contactless payment.
However, the company found that some senior customers are not familiar with using the innovative digital technology. As a result, the company also provides conventional, in-person service.