From chicken rice to noodles — restaurants downsize menus to stay afloat as rising costs clash with shrinking wallets. (Photo by Jetsada Homklin) PATTAYA, Thailand – Even in Thailand’s tourist magnet of Pattaya, the bright lights and lively streets can’t mask the growing strain on small businesses. While Russian and Indian visitors may be breathing new life into the city’s hospitality sector, the street food stalls and traditional family-run stores that form the backbone of the local economy are struggling to survive amid a prolonged slump in domestic purchasing power. According to Somchai Phonrattanacharoen, honorary advisor to the Thai Wholesale and Retail Association, many small store operators have reported a 30% drop in sales during the first half of 2025. Even convenience stores—normally resilient in economic downturns—have seen sales decline by 20%. Unsold inventory is being pulled from shelves, and there is growing concern that grassroots spending will remain weak through the end of the year unless urgent measures are introduced. “Shop owners are adapting by reducing stock levels to minimize losses,” Somchai said. “Suppliers are now demanding cash payments and offering shorter credit terms, which further strains liquidity.” Somchai has urged the Ministry of Commerce to step in more decisively to address the threat posed by cheap Chinese imports, nominee ownership schemes, and under-the-radar grey-market businesses. He noted that with the U.S. finalizing its tariff policies, there is a risk of more foreign products flooding the Thai market, making it harder for local vendors to compete. While he agreed that prices should be left to market mechanisms, he emphasized that without stronger enforcement, local entrepreneurs will continue to lose ground. Pattaya’s street food sector is also reeling. Prapasorn Rangsiroj, president of the Thai Restaurant and Street Food Association, said the industry has been hit with more than a 50% drop in sales since April. The decline has been particularly sharp following Songkran, when inbound Chinese tourism sharply slowed and the domestic economy began to stall. “There’s been no real positive momentum since Songkran,” she said. “The cost of ingredients is soaring, tourism remains inconsistent, and political uncertainty is keeping major fiscal policies, like the 2026 budget, stuck in limbo.” Government campaigns like the domestic “Half-Half” travel stimulus program have stumbled due to system glitches and unclear timelines. Meanwhile, small restaurant owners face the added burden of a 400-baht minimum wage hike that’s pushing costs up without any ability to raise menu prices. “The average customer spends about 250 baht, so we simply can’t charge more,” Prapasorn explained. “Instead, restaurants are shifting to lower-cost single-dish offerings like chicken rice and noodles. Over 30% of businesses have changed hands in recent months.” Without bold government action—such as subsidizing raw material prices and addressing structural economic weaknesses—many fear Pattaya’s famed street food culture could become another casualty of the country’s uneven recovery.