Latest news with #NathVongphanich
Bangkok Post
22-07-2025
- Business
- Bangkok Post
CRG prudent on opening new restaurants
Central Restaurants Group (CRG) is taking a more cautious approach when it comes to its expansion plans due to the current sluggish economy and weak spending power. The sluggish economy has led to cautious spending behaviour among Thais, said Nath Vongphanich, president of CRG. He noticed that while Bangkok is still showing some signs of resilience, spending on dining out in upcountry areas appears to be a bit weaker. The company is also monitoring raw material and labour costs. He believes there is still potential for growth in the restaurant sector this year, but expects certain segments, such as fine dining, to face challenges during this period. CRG remains resilient amid these challenges. If a prospective customer is experiencing a drop in income, the company has various brands with suitable pricing to serve these individuals, he added. Cautious investment Amid the current economic climate, maintaining healthy cash flow is essential for the company. "We are prudent about opening new restaurant branches or making significant investments," said Mr Nath. Any new restaurant launch will require strong confidence in its profitability. The company is reconsidering its focus on simply expanding the number of outlets and may delay additional openings. Earlier this year, the company announced its target to open 120-140 new restaurant branches this year with about 70 new stores already launched in the first half of 2025. However, in the second half, the company might postpone around 10% of the remaining planned openings, particularly affecting smaller brands under its umbrella. He views that restaurants that are small and medium-sized enterprises may seek partnerships to weather the tough economic conditions. This aligns with CRG's strategy to pursue partnerships with other restaurant brands, especially in the shabu category. He said that Thai diners now have new dining habits. In the past, they tended to end their day with dinner, but now many people are enjoying late-night meals. Competitive environment Mr Nath has observed a competitive business environment and he pointed out that Japanese restaurants continue to dominate in terms of openings. "The food business has a low barrier to entry and also a low survival rate," he said. On the ongoing price war among shabu restaurant brands, he said: "This kind of competition is unhealthy and I wonder how long it can last." He views that with a strong reputation as a food destination, Thailand not only attracts many foreigners to come and enjoy the food available here, but it also entices foreign operators to participate in the market. Navigating tough times To survive the challenges of the current economic climate, Mr Nath recommends restaurants keep their liquidity strong. Consistency is also essential. Diners should receive the same quality of service and taste, regardless of which branch they visit, he noted. He emphasised the importance of having standard operating procedures, including simplified recipes that reduce reliance on individual chefs and enhance operational efficiency. Most importantly, the food must be truly delicious. Mr Nath warned that restaurants that focused solely on the visual appeal or on creating "Instagrammable" moments, while neglecting the core element of taste, are unlikely to build a sustainable business.
Bangkok Post
17-07-2025
- Business
- Bangkok Post
Retail association touts recovery strategies
The Thai Retailers Association has recommended two strategies to accelerate economic recovery amid the prolonged global economic slowdown and rising uncertainties. Nath Vongphanich, president of the association, said in the first half of the year the retail sector had been under pressure from all directions, including political uncertainty, subdued consumption, declining investment and external factors such as the slow recovery of international tourism. He added that the US's new tariff policy, which is currently imposing tariffs as high as 36% on Thai products, is a key concern. "Thailand must negotiate for lower rates, ideally on par with Asean peers such as Vietnam, Malaysia and Indonesia, to avoid adverse impacts on small businesses and preserve national competitiveness and employment," said Mr Nath. He said other external challenges, including the tensions in the Middle East and the Thai-Cambodian border spat, have also affected consumer confidence and overall economic sentiment. Mr Nath said the private sector is closely monitoring the government's rollout of effective economic policies and is calling for tangible recovery measures in the second half of the year. The association recommended two key strategies to support economic recovery during this critical period. The first strategy calls for targeted fiscal stimulus to reinvigorate spending nationwide. The initial 115 billion baht from the total budget of 157 billion baht should be swiftly implemented, with a focus on community-based projects, tourism and infrastructure. He said in tourism, urgent safety improvements are essential. An additional 40–50 billion baht in residual budget should be used to boost grassroots purchasing power and support small and medium-sized enterprises (SMEs). This support could include low-interest loan programmes. The association suggested relaunching the "Easy E-Receipt Phase 2" or "Shop Dee Mee Khuen" scheme between September and December to stimulate consumer spending during the peak holiday season. He suggested the programme be simplified to encourage broader participation, covering general goods, One Tambon One Product (Otop) products and eco-friendly items, with a spending cap of 100,000 baht. This could inject over 100 billion baht into the economy, Mr Nath estimated. He added that accelerating budget disbursement by Sept 30 is vital to promptly infuse funds into the economy while preparation of the 2026 budget bill must also stay on schedule to ensure seamless policy execution. The other key strategy is to position Thailand as a shopping destination to attract quality tourists. To achieve this goal, the association recommended an instant 7% value-added tax refund at the point of sale for international tourists with a minimum purchase of 3,000 baht. Other measures include reducing import duties on fashion, apparel, perfumes and cosmetics, which are currently taxed at 20–30%, to boost competitiveness against other countries in the region. The government should consider establishing tax-free zones in major tourist provinces such as Phuket to increase tourist spending and encourage repeat visits over the long term. The association also suggested launching a nationwide shopping festival to stimulate consumer spending and extending the duration of the visa-free period for Russian tourists from 30 to 45 days after the conclusion of the current programme. He said Russian visitors represent a high-spending, long-stay segment that significantly contributes to the tourism economy. The association also revealed the Retail Sentiment Index (RSI) for June, which hit a 42-month low. The index showed a persistent decline across all components and regions, including average spending per bill and spending frequency. Mr Nath said this downturn reflects the fragile state of domestic purchasing power, as both entrepreneurs and investors remain cautious and are delaying new investments, as they await clear and concrete government policies. The downward trend is expected to continue into the third quarter, underscoring the sluggish recovery of consumer purchasing power and cautious spending behaviour, he said.
