Although the Thai economy faces challenges in 2025, the restaurant industry could be lifted by the tourism boom and government stimulus efforts, according to Central Restaurants Group (CRG).
As the Thai economy recovers, high household debt and rising living costs present obstacles this year. This may lead consumers to be more cautious about their spending, said Nath Vongphanich, president of CRG.
Thailand's household debt-to-GDP ratio stood at 89.6% in the second quarter of 2024, according to the National Economic and Social Development Council.
"Uncertainty in global economic and political affairs could further affect consumer purchasing power," Mr Nath said.
Headwinds for the restaurant industry include rising operational costs linked to increases in the daily minimum wage, energy prices and raw material prices, said Mr Nath.
The sector is likely to continue to grapple with a labour shortage, complicating service offerings and store expansion plans.
On the positive side, public investment in infrastructure and foreign investment are expected to bolster the economy, potentially creating new job opportunities, he said.
Tourism is predicted to rebound as well, with the government aiming to attract 40 million foreign visitors in 2025, surpassing the number recorded in 2019.
This influx of both local and foreign holidaymakers could positively influence spending on dining out at restaurants, said Mr Nath.
He said state stimulus schemes, such as the "Easy E-Receipt" project, which has been approved, and the "We Travel Together" scheme, which is currently under consideration, would also boost the eatery sector.
The Easy E-Receipt scheme runs from Jan 16 to Feb 28, 2025. The scheme allows taxpayers to deduct up to 50,000 baht in personal income tax for goods purchases in order to help stimulate spending.
Eligible goods and services must be registered in the value-added tax system and issued with electronic tax invoices.
To navigate through the challenges, CRG plans to prioritise cost management by integrating technology into its operations, including the use of robots in stores, QR-code ordering systems, and data analytics for marketing purposes.
Moreover, CRG aims to expand its brand portfolio by pursuing joint ventures in the shabu-shabu, sukiyaki, or BBQ categories.
Mr Nath said the company plans to grow its existing brands such as KFC, Auntie Anne's and Shinkanzen Sushi.
The company anticipates the restaurant segment's sales growth to reach 5-7% year-on-year in 2025.
