REDEFINING DINING

With a slump in the F&B sector, high-end restaurants are in need of a strategy change

- Story by NIANNE-LYNN HENDRICKS

In recent months, the restaurant industry has seen a 40% decrease in consumer spending, according to Thanivarn Kulmongkol, president of the Thai Restaurant Association.

This, coupled with the fact that tourism numbers are also on the downturn, means a wide range of establishments from fine-dining restaurants to food stalls and even street food have been doing their best to stay competitive. With consumers focusing largely on price, it is fine dining and casual fine dining that are suffering the most.

“Yes, in many parts of the world, including Asia, demand for fine dining is showing signs of slowing down. In the case of Thailand, upper-middle-class consumers are tightening their entertainment budget and this includes eating out. Even tourism has shifted to more budget-conscious options, and the younger generation, though still spending, are prioritising more casual concepts,” says Christian Martena, chef-patron of Clara, an Italian fine-dining restaurant.

The 2025 outlook for the Thai restaurant industry, which is valued at 700 billion baht, points to a slowdown. According to a report by the Department of Internal Trade, some 3,000 restaurants closed during the first quarter of this year alone. At the same time, a significant number of new establishments opened, though this has only spread the diners and not added more to the table.

In February, Bangkok bid farewell to its first big fine-dining casualty Canvas Bangkok, under the tutelage of chef Riley Sanders.