Thai eateries to face stiff competition under AEC

Competition from Japanese, Korean and Asean nations’ restaurants is expected to intensify further under the Asean Economic Community (AEC), which is due to come into force in 2015. The competition for prime restaurant locations will heat up as well. 

Thaniwan expects the AEC to open the gates for popular foreign restaurant brands to expand their share of this lucrative segment, which is still mostly owned by Thai operators. 

Furthermore, the growing number of foreign tourists visiting Thailand should boost the number of restaurants at shopping malls, which tend to attract more customers than standalone restaurants. 

 

Second best 

Thai restaurant standards are considered second-best in Asean, behind Singapore, Thaniwan said. However, if operators of independent Thai restaurants fail to upgrade their standards to match those of others in Asia in the next two years, foreigners could capture a bigger share of the business, Thaniwan warned. 

Of the more than 400,000 restaurants operating in Thailand, only 10 per cent are seen as meeting international quality standards. Hence the Thai Restaurants Association is joining forces with eight ministries to launch a project aimed at raising the quality of all in this industry, including roadside and sidewalk food vendors and stalls, in accordance with standards established last year. 

Currently, 750 restaurants and 200 roadside food vendors in the North, the South and in Bangkok have been evaluated in accordance with Thailand Restaurant Quality Standard.