Saboten exits CentralWorld as restaurant sector feels the squeeze

Rising restaurant costs, driven by higher oil prices linked to the conflict in the Middle East, are weighing on the sector. Major corporations are seeing lower profits, while Saboten’s decision to close a branch that had operated for more than 15 years reflects how difficult 2026 has become. The market is increasingly tilting towards large chains, while smaller operators face a much tougher fight.

Saboten, the well-known tonkatsu restaurant, has announced the permanent closure of its CentralWorld branch after more than a decade of operation. The closure leaves the brand with six remaining branches: Central Rama 9, The Promenade, J-Park Sriracha in Chon Buri, Terminal 21 Rama 3, Central Pinklao and Central Pattaya.

Saboten is a Japanese pork cutlet, or tonkatsu, restaurant brand operated under President Bakery, better known as Farmhouse, as the parent company. It is run through an affiliated company, President Green House Foods Co Ltd, which has been in business for nearly two decades.

Its financial performance over the past three years was as follows:

• 2025: Total revenue of more than 110 million baht, down 3.23%, with net profit of just 884,000 baht, down 89.73%.
• 2024: Total revenue of more than 113 million baht, down 13.39%, with net profit of 8.61 million baht, down 49.89%.
• 2023: Total revenue of more than 131 million baht, up 21.69%, with net profit of 17.19 million baht, down 1.1%.

A restaurant industry source said the sector has now become a battlefield for large network operators or chains, which must have comprehensive strengths, including central kitchens, strong management teams and the financial capacity to expand and scale up.

Saboten, meanwhile, still relies on its parent company in several areas, including staffing and expenses. If the business is making losses, choosing to “stop the bleeding” by closing a branch is a way for the company to avoid continuing losses.

Looking at the restaurant business in 2026, especially during a period of sharp cost increases caused by the Middle East conflict and rising oil prices, many businesses have inevitably been affected since the first quarter. Restaurants are among them, with operators across both small and large brands seeing profits decline across the board. Smaller operators are expected to face an even harder time this year.

“Look at the small brands disappearing. The brands that survive are almost all chains now. Rising costs are making it very difficult for operators. The real test comes when the waves hit. Right now, everyone’s profits are falling because costs are rising, but restaurants cannot raise food prices. Even when they reduce portion sizes, it is still difficult. At the same time, people are eating out less, while spending more on out-of-home entertainment, especially concerts, which runs strongly against the wider economic mood,” the source said.

In addition to rising costs, rents are another major factor for restaurants located in shopping centres. They are a fixed cost that does not decrease and, in most cases, only continues to rise.

A look at the first-quarter 2026 results of major restaurant operators shows that most saw profits fall, while some slipped into losses.

MK Restaurant Group Public Company Limited, recorded revenue from sales and services of 4.047 billion baht, up 14.3% year on year. However, net profit stood at 163 million baht, down 70 million baht or 30.1% from the previous year. This also marked the fifth consecutive quarter of declining profit.

Pluk Phak Praw Rak Mae Public Company Limited reported sales revenue of 573.5 million baht, down 19%, and a loss of 30.4 million baht, widening by 147.7%.

S&P Syndicate Public Company Limited posted total revenue of 1.286 billion baht, down 92 million baht or 7%, with net profit of 44 million baht, down 4 million baht or 8%.

After You Public Company Limited reported sales revenue of 419 million baht, flat from the same period last year, while net profit fell 17% to 54 million baht.

Suki Teenoi recorded revenue of 2.588 billion baht, up 32%, but net profit fell to 170 million baht, down 101 million baht or 37.3% from 271 million baht in the same period last year.

By contrast, Central Restaurants Group Co Ltd, or CRG, recorded first-quarter sales revenue of 3.193 billion baht, up 1%, while net profit rose 50% to 232 million baht. This was in line with the vision previously announced by its top executive, who said the company would focus on profit as its core priority. CRG has followed this approach for several years, leading to the closure of some brands and the termination of certain branches that no longer meet profitability targets.