As Late-Night Dining Grows, Restaurants Compete for Market Share

Restaurants
Nak-La Mookata

BANGKOK – Restaurants that stay open late into the night or into the early hours of the morning, for example, until 2 or 4 a.m., are a hot trend in the Thai hospitality industry.

Following the success of pioneers such as Suki Teenoi and Hai Di Lao, which have seen a steady flow of customers until late at night, other players in the restaurant industry are now also deciding to enter the late-night restaurant market.

One example is the Central Restaurants Group, which operates a chain of restaurants, desserts and beverages under the Central Group umbrella, and Thai President Foods, the manufacturer of Mama instant noodles.

Mr. Nat Wongpanich, executive director of Central Restaurants Group Co, Ltd (Public) or CGR, which operates 20 chains of restaurants, desserts and beverages, including KFC, Shinkansen Sushi, Ottoya, Mister Donut and many others, said that late-night dining being another potential segment of the food business with a total market value of around 430 billion baht. This is due to a number of factors, including high demand from the younger generation who use these venues not only for eating but also as a meeting place with friends.

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Following this trend, the company has started to enter this late night segment with the launch of its steamboat restaurant “Nak-la Mookata”. The concept of the restaurant is an air-conditioned steamboat restaurant that is suitable for gatherings and is open from 11 am to 2 a.m.

Restaurants
Nak-La Mookata Restaurant

It is also located in locations that are accessible late at night, such as near entrances and exits or in shopping centers. There are currently 6 branches: MBK Center, The Forest Phaholyothin, Victory Hub, Icon 56 Saimai, Paradise Place, which are open until 2 am, while the Future Park branch closes at 9 pm on weekdays and 9:30 p.m. on Saturdays and Sundays.

The company is also studying opportunities to expand further in various forms, including joint ventures with potential partners or acquisitions.

Mr. Phan Panaiyaveth, Managing Director of Thai President Foods Co, Ltd (Public), the manufacturer and distributor of mama instant noodles, said in this regard that the potential for late-night restaurants to generate revenue is very high. This is shown by the experiment of opening a prototype “Mama Shop” which currently has three branches (HappyHub Badminton Court project in Ladprao area, Thammasat University Rangsit Centre and Minimal Mall project Petchaburi 98) since 2022.

Restaurants

It was found that sales in the late night hours, from 11 p.m. to 4 a.m., were three times higher than during the day, from 11 a.m. to 11 p.m.

As a result, the company is expanding the “Mama Shop” model by opening the “Mama Station” in the RCA area, which offers a greater variety of food on the menu. It plans to open 2-3 more Mama Station outlets this year, with a focus on opening in popular nightlife areas such as Nimmanhaemin Road in Chiang Mai in June or July this year.

The company is also testing a new model in the form of a food truck, which was tested at Pattaya Water Space in early April and was very well received, especially by Chinese tourists. The advantage of this model is that it requires little investment and is easy to expand.

Restaurants
Suki Teenoi

Suki Teenoi, the pioneer of the late-night dining segment, which is open from 12 a.m. to 5 a.m. because there is no competition at that time and can appeal to night workers and night owls, is also planning to further expand its branches.

This year, the number of stores is to be increased from the current 55 to 60. The company will focus on opening branches in the provinces or open more branches in some provinces where it already has branches, such as Chiang Mai, Udon Thani, Khon Kaen, Rayong, Chonburi, etc.