Wallet watch: Thai restaurants hungry for details on digital handout
Restaurant owners are on tenterhooks, waiting for vital details on the government’s digital wallet handout scheme. The Thai Restaurant Association reveals that operators are eagerly anticipating specifics on how they can use and convert digital cash.
President Thaniwan Kulmongkol says restaurateurs are frustrated by the delay, as the Commerce Ministry has scrapped the August 5 press conference meant to explain how shops can sign up. Now, the big reveal has been pushed back to an undecided date next month.
“Small restaurants are concerned about whether the vendors they rely on for raw materials will participate in the scheme and the extent of their participation.”
She emphasised that the restaurant sector is expected to be significantly impacted by the sluggish economy this year, as economic activity slows down.
Many companies have paused organising business seminars or excursions, which has inevitably affected the restaurant industry, Thaniwan noted.
She warned that this economic downturn could financially strain small operators, potentially pushing some towards seeking informal loans to stay afloat.
Additionally, the association is urging the government to control energy prices, as an increase in fuel prices would heighten the cost of raw materials for restaurants, Thaniwan added.
“Resilient operators will survive this stagnant period, and the industry will gradually recover in the second half of the year.”
Despite the challenges, Thaniwan noted that while some restaurateurs might go out of business, new ones will likely enter the market.
The restaurant industry is known for having a low barrier to entry.
Last year saw a surge of new players, with over 100,000 new establishments opening.
However, data from the online food delivery platform Line Man Wongnai indicates that 50% of new restaurants fail within their first year, and 65% fail within three years, reported Bangkok Post.
In related news, the Ministry of Commerce, in collaboration with 150 manufacturers, retailers, and government agencies, is launching a nationwide price reduction event to alleviate living costs and stimulate the economy before the digital wallet launch.
