Thailand's delivery business likely to grow two digits in 2017

BANGKOK, December 9 (TNA) - Bangkok-based Kasikorn Research Center (KRC) has projected that Thailand's emerging delivery business should grow by 11-15 per cent year-on-year in 2017, thanks to rapidly expanding online food order services. KRC reported on December 8 that the value of Thailand's online food delivery business is expected to reach 26-27 billion baht next year, representing 11-15 per cent year-on-year growth, whereas the business of Thai restaurants is likely to expand only about 2-4 per cent year-on-year in 2017. The private think tank acknowledged online food order services, either developed by each restaurant or provided by their authorized agents, have considerably boosted revenues of local restaurants. The leading research firm said cooperation in terms of a business alliance between local restaurants and their online service agents has also helped raise business competitiveness of general restaurants, amid their competing challenges with larger-scaled restaurant chains, in terms of increasing their customer and marketing bases. Besides, general restaurants can easier access to their customer bases for their marketing strategic purposes through the online channels. KRC warned, however, of risk factors facing both local restaurant chains and general restaurants in 2017, pointing out that for restaurant chains, revenues of their old branches could drop or grow in a slower pace due to more customers' flowing to their new branches. For general restaurants, the wellknown Bangkok-based research firm cautioned that they could face a challenge on introducing their unique or first-offered sets of menu to draw more customers, as most of them are likely to open the same type of food business being popular for the current market trend. (TNA)