Phuket Restaurant Groups Sign Supply Chain Pact Amid Rising Costs and Weak Outlook
A memorandum of understanding was signed by representatives from the Restaurant Association, the Night Restaurant Business Trade Association, the Digital Technology Entrepreneur Trade Association, the Thai Fresh Market…
Representatives from five major food industry associations signed a memorandum of understanding on April 26 to address rising costs and weak demand facing eateries in Phuket and across Thailand. The agreement aims to link restaurant operators with high-quality products at fair prices and introduce advanced technology throughout the supply chain.
Supply Chain Collaboration and Cost Pressures
The Thai Fresh Market Association will provide raw materials and develop a smart logistics system to help reduce hidden costs related to energy prices. The Restaurant Association will coordinate pooled purchasing to boost members’ bargaining power.
Vegetable prices have increased by 10-20% on average, while seafood prices have risen sharply and chicken and pork costs have edged up, said Chanon Koetcharoen, president of the Restaurant Association. Disposable plastic food containers now cost 130 baht per pack of 50, up from 65 baht. Food delivery platforms have raised gross profit charges for restaurants by 1-2 percentage points, with current platform fees averaging 25-30%.
Weak Demand and Shifting Consumer Habits
The industry faces its low season from May to September, with uncertainty heightened by the conflict in the Middle East and volatile fuel prices. Chanon noted that high-end restaurants and bars are seeing declining sales, while street food outlets remain steady as consumers focus on value for money.
During the low season, restaurants typically reduce part-time staffing. Chanon said it is difficult to forecast whether overall staffing levels will rise or fall given the current economic environment.
Source: https://www.thephuketnews.com/eateries-face-rising-costs-weak-outlook-100022.php
