Sluggish economy shuts down shops in once-bustling areas

The year 2025 continues to see an economic downturn, with weak consumer purchasing power affecting many businesses. A number of entrepreneurs are facing bankruptcy, while others are being forced to shut down due to unsustainable costs and a decline in tourism.

The One Ratchada Shuts Down

Most recently, The One Ratchada — also known as the Old Train Night Market behind Esplanade Ratchada — announced its permanent closure as of May 5. The market had been operating for around 2–3 years. The closure has forced all shops and restaurants in the market to cease operations, especially those with no additional branches, hitting them particularly hard. Many employees have also lost their jobs.

One food vendor revealed that the lease agreement between the market and the landowner ended abruptly, with vendors being given only a few days' notice. This sudden announcement shocked many shop owners, especially those who had recently invested large sums, some in the hundreds of thousands of baht, to restock inventory. Over 130 vendors have been affected, and many staff members have been laid off due to a lack of alternative branches for relocation.

The management of The One Ratchada informed vendors of a relief plan: they are being offered space at Night Bazaar near MRT Lat Phrao at a discounted rent of only 1,000 baht per month for three months, along with reduced utility costs. Vendors will be allowed to start operations at the new site in June 2025.

However, many vendors are sceptical. The proposed new location had previously operated as a night market but was unsuccessful. Its primary customers were Chinese tourists staying nearby — a group that has now significantly declined. This has made many vendors hesitant to relocate.

In response to the situation, affected vendors from the original market have begun discussions to push for more substantial support and compensation from the market operator.

Yaowarat ( Chinatown ) Sees Drop in Tourist Numbers

Even in the once-bustling Yaowarat area, business owners are now reporting a significant drop in tourists, with the district no longer enjoying the popularity it once had. One notable example is Among Mala, a grilled mala skewer restaurant, which announced the closure of its Yaowarat branch due to the inability to keep up with rent amid mounting losses of over one million baht.

Among Mala Closes Yaowarat Branch After Heavy Losses

Among Mala issued a statement explaining the closure. According to the announcement, the restaurant faced several challenges: a sluggish economy, a sharp decline in tourist traffic in Yaowarat compared to previous years, waning popularity of mala restaurants, and a significant increase in rental costs (estimated in the high 200,000+ baht range). These factors led to accumulated losses exceeding 1,000,000 baht for the Yaowarat branch.

To ease the impact, the restaurant is offering staff the option to transfer to other branches or seek other job opportunities. The final day of operation for the Yaowarat branch is expected to be June 22, 2025.

Banthat Thong Businesses Up for Lease Transfer

Reporters note that Banthat Thong Road, once considered a prime commercial hotspot and foodie haven often praised by influencers and food reviewers, is now seeing a wave of business lease transfers. Despite the area's popularity, not all businesses have thrived. Many restaurants have recently posted lease transfer notices, with some asking as much as 1.8 million baht.

Thaninrat Pakdeepinyou, a retail business expert, previously conducted an on-site survey and spoke with restaurant owners in the area. His findings revealed that businesses face high fixed costs, including three-year lease contracts requiring multimillion-baht investments, and monthly rent as high as 50,000 baht. Owners also shoulder unavoidable expenses such as kitchen and service staff wages, utility bills, and property taxes.

Despite being in a prime location, businesses are restricted to limited operating hours — just six hours a day, from 6.30pm to 11.30pm — which hinders their ability to generate sufficient revenue. As a result, many have had to raise menu prices to offset costs.

Surveys indicate that around 85% of customers in the area are young people, particularly university students. However, their spending is infrequent and inconsistent, which challenges long-term business sustainability. Regular, returning customers — essential for steady growth — remain in short supply.