Line Man Wongnai has highlighted the ongoing growth of the online food delivery market, but warned that the challenging economic conditions could lead to the closure of between 50,000 to 100,000 small restaurants.
Thailand boasts a total of 700,000 restaurants, encompassing mobile street vendors, with an estimated overall business value of 800 billion baht. Online food delivery services represent 15% of this total value.
Yod Chinsupakul, the CEO of Line Man Wongnai, noted a 10% growth in online food delivery over the past five months and anticipates this trend to continue throughout the year. He emphasized that as food is considered a necessity, it tends to be less impacted by economic downturns.
Typically, around 50% of food establishments shut down within their first year of operation, with an additional 20-30% closing in later years, Mr. Yod stated.
While Line Man Wongnai’s platform usually sees 50,000-100,000 restaurant closures annually, this number could be higher this year, predominantly affecting smaller eateries.
Mr. Yod estimated the value of Thailand’s online food delivery market at 100 billion baht, highlighting that about half of all restaurants in the country have embraced digital technology.
The company has expanded its offerings to include business-to-business (B2B) solutions, with a focus on payment systems, merchant management, and point of sale solutions tailored to the restaurant industry.
To support food businesses in adapting to the online realm, Line Man Wongnai partnered with the Business Development Department to provide technology training and facilitate their transition to the digital space.
Napintorn Srisunpang, the deputy commerce minister, mentioned that Thailand is home to over 300,000 food operators, the majority being small and medium-sized enterprises (SMEs).
Under the memorandum of understanding (MoU), up to 500 “Thai SELECT” food operators will receive training in digital technology and have the opportunity to join the Line Man Wongnai platform. Thai SELECT certification guarantees the authenticity of Thai food products.
Looking ahead, Line Man Wongnai plans to offer a wider range of financial services, potentially including merchant loans through partnerships. The company is eyeing potential acquisitions to enhance its ecosystem and aims to solidify its market leadership in terms of revenue.
With preparations underway for a potential initial public offering (IPO) by the third quarter of 2025, Line Man Wongnai is considering a dual listing in both Thailand and the United States.
