May 23, 2008
Bangkok - Restaurants in Bangkok had to end their operations as they couldn’t bear the soaring goods prices, according to the Thai Restaurant Association.
More than 40 restaurants ended the operations in the first four months of this year, according to a survey.
Mrs. Pavornwan Kulmongkol, chairman of the Thai Restaurant Association, revealed about 10% of the 400 medium and large-sized restaurants in Bangkok could not bear the rising cost burdens.
The restaurant market grew 5% in the first four months, totally valuing 200,000 million baht.
The price of rice, vegetable oil and sugar which are major raw materials in the food business keeps going up.
As a result, the raw materials cost burden hikes 45-50% of the total cost. The restaurant owners are at loss risk more if they can make sales as planned.
The high cost of living also forces consumers to be more careful about their spending.
A consumer reduces the number of time he or she eats out from four to one time per month though food is one of the four basic necessities.
Pavornwan said what the owners can do is controlling their costs as they are aware of consumer’s higher cost of living.
