Weak domestic spending and sluggish foreign tourism, particularly from the Chinese market, have caused restaurant revenue on Bangkok’s popular Banthat Thong Road to dip by 40-50%, according to the Bantadthong Association.
Sittichan Vuttipornkul, the association’s adviser, said spending is growing more slowly than restaurants’ expenses, such as ingredients and rent, which consistently increase by 5% every year.
He said the decline of the Chinese tourism market this year has affected restaurant operators on the street, as foreigners typically account for 20-30% of daily visitors, most of whom are Chinese.
Domestic travellers have tightened their spending on dining, leading to a sales decline since the beginning of 2025. Some restaurants have experienced a drop of up to 70% from the same period last year, said Mr Sittichan. He said Banthat Thong has also been hampered by negative online sentiment, with some commentators criticising restaurants for selling overpriced and unappetising food.
Thankfully for many operators, average rental costs for the area are not as high as in other retail and commercial spaces.About 80-90% of operators on the street lease properties directly from Chulalongkorn University, with an average rate of 350 baht per square metre. This is cheaper than the average of 700 to 1,000 baht per sq m in shopping malls and 600 to 800 baht in retail spaces at petrol stations.Only a few operators sublease from tenants, which makes their rental expenses higher than the average, Mr Sittichan said.
He also admitted that some new restaurants aim for high returns within a very short period. The association would discuss this issue with its members. Packed with over 300 restaurants, Banthat Thong was named the world’s 14th coolest street by Time Out magazine last year.
In 2024, the association estimated that the street welcomed anywhere from 10,000 to 30,000 visitors daily.
Mr Sittichan said the street has both long-standing renowned restaurants and emerging food stores, such as Haab, a Thai egg pastries shop which became famous a few years ago.
The closure rate on the road is only 2-3% of all operators, suggesting there is still demand for investment in Banthat Thong, he said. The association wants to elevate the area as a top tourist destination for street food and lifestyle experiences.
It plans to hold more activities with other businesses and target visitors across all ages, not only younger people who are currently the main customers but have limited budgets of 100-250 baht per meal. Mr Sittichan said the association does not want the restaurants to compete on pricing, which would trigger price wars and hamper overall performance.
Courtesy – Bangkok Post
