Kasikorn Research Centre reported that the third wave of COVID-19 in Thailand will have a huge effect on the restaurant business, which is still recovering from last year’s closures.
The latest COVID-19 restrictions, imposed on deep-red zone provinces, namely Bangkok, Chonburi, Chiang Mai, Nonthaburi, Pathum Thani, and Samut Prakan, prohibit dining in the restaurants and restrict opening hours, effective from tomorrow.
Full-service restaurants will be affected the most, especially those located in shopping centres and at tourist locations. It is predicted that such businesses will generate revenues of 139-144 billion baht, a 12% drop in the worst case.
Limited-service restaurants, including street food vendors, will be less affected, as they have different distribution channels and a flexible cost structure. Food delivery services will generate revenue between 61 and 63 billion baht, a 2.5% reduction at worst.
Street food vendors may have received benefits from the government’s stimulus schemes, which will help them survive during the pandemic. They will, however, still experience a revenue reduction of up to 1%, or 182 to 187-billion-baht.
Due to the current situation, the centre estimated that the food service sector, as a whole, will generate only 382-394 billion baht this year, a 5.6% revenue reduction year on year.
Source: Thai Public Broadcasting Service (Thai PBS)