Thailand restaurant market to hit 400 billion baht in 2024

Central Restaurants Group (CRG) anticipates a 5% sales growth in 2024, driven by the digital wallet handout scheme, while Thailand’s restaurant market value is projected to reach 400 billion baht this year.

Nath Vongphanich, CRG President, addressed the ruling Pheu Thai Party’s upcoming 10,000-baht digital wallet handout scheme, expected to launch in the fourth quarter. He mentioned that the company is awaiting further details or guidance on this initiative.

Eligible CRG restaurants are expected to contribute to a 5% increase in same-store sales. Despite this positive outlook, Nath highlighted challenges posed by the government’s plan to introduce a new daily minimum wage and rising electricity prices.

“The company would like to ask the government to provide subsidies for the energy price as it accounts for 4% of the cost of goods sold.”

In the first half of this year, CRG’s same-store sales grew by 1 to 2% on average compared to the same period last year. Nath noted that the company’s investment focus for this year will be on its restaurant brands, including Ootoya and Pepper Lunch. Specifically, there are plans to expand Pepper Lunch branches to the up-country region.

CRG is also exploring opportunities to add brands to its portfolio. Nath mentioned that they are looking for a brand with growth potential and resilience to withstand a market slowdown.

Following a management system restructuring, CRG aims for significant sales growth, targeting 1 billion baht in sales over the next five years. The company is considering partnerships with Thai SMEs, intending to introduce two more restaurant brands this year, focusing on Shabu-shabu and Yakiniku styles.

Nath further noted that the Thai restaurant market is expected to grow by 7% this year, reaching a value of 400 billion baht. CRG aims to achieve 16 billion baht in sales this year, with double-digit growth, outperforming the overall restaurant market, supported by store expansion and a recovery in the tourism sector, reported Bangkok Post.