Kasikorn Research Center estimates that in the first half of the year, the outbreak of coronavirus or COVID-19 has been severe and has significantly impacted the business sector. However, if the outbreak and economic slowdown improve in the second half of the year, it is expected that the pressure on the restaurant business will ease somewhat. The Kasikorn Research Center has revised its revenue forecast for the restaurant business in 2020 down to 402-412 billion baht (from the original forecast at the beginning of the year of 439 billion baht), a decrease of 26.5 to 36.5 billion baht.

      The COVID-19 outbreak has had a widespread impact on many industries, including the restaurant business. This is due to not only foreign tourists delaying their travel to Thailand but also Thai consumers avoiding travel and dining in crowded places. Additionally, the economic slowdown and the risk of layoffs have pressured domestic consumers to be more cautious with their spending.

      Full-service restaurants and those that primarily rely on in-store sales are expected to be significantly affected, with annual sales potentially dropping to just 164 billion baht. Restaurants that are likely to experience moderate impacts include those with limited service where customers must order at the counter and partially serve themselves, as well as restaurants that generate income through Food Delivery channels, which are expected to see sales drop to just 65 billion baht this year.

       Meanwhile, restaurants that are expected to be less affected compared to others are those with a high proportion of income from Food Delivery or street food vendors that offer takeout, as they have diverse sales channels. It is anticipated that their sales this year will be around 179 billion baht.

            However, this categorization of restaurants is a preliminary grouping. The severity of the impact on each restaurant will still depend on several important factors such as profitability, location, management systems, and the safety of employees and products.

Thank you for the information from: Kasikorn Research Center