Central Restaurants Group (CRG) is scaling back its restaurant expansion plans for the remainder of 2025, citing a sluggish Thai economy and softened consumer spending as key reasons behind its more restrained approach.
Central Restaurants Group (CRG), one of Thailand’s largest food service operators, has adopted a more cautious stance on opening new outlets in response to weakening economic conditions and reduced household spending, particularly outside of Bangkok.
CRG President Nath Vongphanich noted that while the capital city remains relatively resilient, consumer behavior in provincial areas has become increasingly conservative, especially when it comes to dining out. As a result, the company is reviewing its investment strategies and closely monitoring operational costs, including those related to raw materials and labor.
Despite the challenges, Nath believes there is still room for growth in the restaurant sector in 2025, though segments such as fine dining may encounter continued pressure. The group remains committed to catering to a broad customer base through its range of brands, offering varying price points to suit different levels of disposable income.
Earlier in the year, CRG announced plans to launch between 120 and 140 new restaurant branches in 2025. By mid-year, approximately 70 outlets had already opened. However, the company is now considering postponing around 10% of its remaining planned openings in the second half of the year, particularly those involving smaller brands in its portfolio.
The group is also exploring partnership opportunities, especially within the shabu hotpot segment, as a way to mitigate risk and navigate the current economic downturn. Nath observed that smaller restaurant operators, particularly SMEs, may need to rely on collaborations to maintain viability.
He also pointed out changes in Thai dining behavior, with a growing number of consumers opting for late-night meals rather than traditional dinner hours. Meanwhile, Japanese cuisine remains a dominant force in new restaurant openings across the country.
In a highly competitive landscape, Nath expressed concern over unsustainable practices, such as price wars in the shabu category. He emphasized that Thailand’s reputation as a global food destination continues to attract both diners and international operators, further intensifying market competition.
To survive, he recommends that restaurant operators maintain strong liquidity and ensure consistency in quality across all branches. Operational efficiency, simplified recipes, and adherence to standard procedures are key strategies CRG uses to reduce dependency on individual chefs.
While visual appeal and social media presence have become popular marketing tools, Nath warned that taste remains the most critical factor. He noted that businesses focused more on aesthetics than flavor are unlikely to achieve long-term success.
CRG is part of Central Group, a major Thai conglomerate with interests spanning retail, property, and hospitality. Other than Nath Vongphanich, the company did not release additional details about individual executives involved in the revised expansion strategy.
