Restaurant operators will await further clarity regarding the digital wallet handout scheme after the government postponed the announcement of the eligibility criteria for vendors, according to the Thai Restaurant Association.
Thaniwan Kulmongkol, president of the association, said restaurateurs are awaiting further details on the eligibility criteria of the scheme concerning how digital money they receive can be spent and how to convert the digital money into cash.
The Commerce Ministry cancelled a press conference that was set for Aug 5 to announce the details of how shops could register to join the digital wallet scheme and postponed it until an as yet unspecified date next month.
"Small restaurants are concerned about whether the vendors who they need to buy raw materials from will participate in the scheme and the extent to which vendors will participate," said Ms Thaniwan.
She said the restaurant sector will be severely impacted by the sluggish economy this year as economic activity decelerates.
Many firms have refrained from organising business seminars or excursions which inevitably affected the restaurant business, she said.
She said this economic woe will affect small operators financially and in the worst case may lead some of them to seek informal loans in order to survive.
Moreover, the association would like to request the government to maintain the energy price, as raising the price of fuel would affect the cost of restaurants' raw materials, said Ms Thaniwan.
"Resilient operators will survive this stagnant period, and the industry will gradually recover in the second half of the year," Ms Thaniwan said.
Although some restaurateurs would go out of business, there would be new restaurateurs entering the business arena, she noted.
The restaurant industry is considered to have a low barrier to entry.
Indeed, there was an influx of new players last year, with over 100,000 new establishments entering the market.
However, data shows that 50% of new restaurants fail within the first year of operation, while 65% fail after three years, according to online food delivery platform Line Man Wongnai.