Thai Restaurant Industry Seeks Government Aid
Thailand's restaurant industry is facing significant struggles, prompting the Thai Restaurant Association to press the government for urgent assistance. The association is requesting a three-month stimulus package that includes liquidity injections and the revival of co-payment schemes to support the sector.
- The Thai foodservice market is valued at approximately USD $33 billion, with growth driven by urbanization and a rising middle class. However, the industry is currently described as "struggling" and "tired," with a 43% drop in registered corporate restaurants between August 2024 and June 2025. - In response to the downturn, the government has approved a five-point tourism stimulus package which includes tax deductions of up to 20,000 baht for individuals on eligible domestic travel expenses, including restaurant services. - The struggles in the restaurant sector, a key buyer of domestic rice, come as India, the world's largest rice exporter, lifted its final export restrictions in March 2025. This policy shift has already contributed to a 38-45% drop in the price of 5% broken rice from Vietnam and Thailand. - The increased competition from Indian exports has resulted in Thailand dropping to the third-largest rice exporter in the first half of 2025, falling behind both India and Vietnam. - To protect its own growers, the European Union is set to implement a safeguard mechanism on rice imports from Asia, including Thailand, which will come into force on January 1, 2027. The legislation will trigger higher tariffs if imports exceed historical levels. - Despite broader market challenges, demand for premium Thai Jasmine rice remains strong, accounting for approximately 45% of Thailand's total rice export value in 2025. Key growth markets for premium and organic rice include the EU, US, China, and the Middle East. - The Thai baht has seen fluctuations against the euro, with the average exchange rate for the last six months being 1 Thai baht to 0.0268 Euro. Recent movements saw a high of 0.0275 and a low of 0.0261 against the Euro.
