
Every type of eatery is struggling this year as the economy and tourism slow, says renowned Thai chef and restaurateur Thitid Tassanakajohn, also known as Chef Ton.
Mr Thitid, the owner of several restaurants including the Michelin-starred Le Du, said the Thai restaurant industry is grappling with multiple challenges.
The decline in tourism, especially Chinese visitors, which he dubbed significant spenders in the restaurant sector, has had a visible impact, he said.
Areas once bustling with tourists, such as around the Grand Palace in Bangkok, have seen a noticeable drop in foreign visitors, said Mr Thitid.
"This is affecting not only street food vendors, but also fine dining restaurants," he said.
His restaurant Nusara, which ranked No.6 on "Asia's 50 Best Restaurants 2025", along with nearby street food vendors located a few hundred metres from the Grand Palace, have all reported a decline in sales.
While the number of tourists from Europe, the US and Israel may have increased, Mr Thitid said they cannot offset the sharp drop in Chinese tourists, who arrived in much larger volumes.
"We need tourists who spend across all eating segments, including delivery, street food, fine dining and hotels," he said.
One oft-repeated truism is that high-end consumers are the last to be affected during economic downturns. However, Mr Thitid noticed signs of weakening demand in the fine dining sector as early as last year.
With the country's sluggish economy, both individual diners and corporations are tightening their budgets.
Year-end corporate dining, once a key source of revenue for many fine dining restaurants, dropped last year. Thankfully tourist spending helped fill that gap, he said.
However, the current dip in both economic activity and tourism is creating a double whammy, said Mr Thitid.
"Some people now prefer to cook at home rather than dine out, and companies are shifting from fine dining to more casual restaurants to cut costs," he said.
In May, Mr Thitid's restaurant group recorded a 50% year-on-year drop in sales. He said the toughest period for the industry will likely be July to September -- the rainy season when tourist numbers typically dwindle.
However, this year the downturn began earlier than expected, affecting the economy as early as May.
"We're really hoping the industry recovers by year-end," Mr Thitid said.
His group operates 25 branches across 20 brands and employs around 300 staff.
"If we can avoid losses this year, that would be something to celebrate," said Mr Thitid.
He said the authorities should develop a long-term plan to prevent a quiet year-end tourism season, including stimulus measures for the tourism and restaurant sectors as they employ a large number of people.
Mr Thitid said the "Khon La Khrueng" co-payment subsidy was a successful stimulus effort that benefited both consumers and business owners. He said tax deductions for restaurant spending could further aid the sector's recovery.