Thai Restaurant SWOT Analysis

One of the most important strengths for a Thai restaurant is that there is usually only a limited amount of competition within any specific market for this type of cuisine. In larger metropolitan area markets, there are usually several Thai restaurants in operation but competition can still be considered to be moderate. The gross margin is generated from the sale of Thai cuisine typically generates 70% to 80% margins for every dollar of revenue generated. Startup costs that are normally associated with this type of business range anywhere from $50,000 to $200,000 depending on the location and size of the initial facility. One of the other nice things about owning this type of business is that delivery options are usually provided by the business which can greatly expand revenues from outside of the retail location. It is very important to note that many Thai restaurants will frequently integrate e-commerce functionality into their websites so that customers can place orders directly for delivery or take our options. Thai cuisine also has few underlying costs as it relates to the cost of goods sold which allows for a very large flexibility as it relates to pricing.

One of the key weaknesses to a Thai restaurant is that they do have moderately high operating costs. These costs include rental expense, utilities, advertising, a very large payroll. Inventory spoilage is always an issue for a Thai restaurant as it is with any type of eatery. One of the other ongoing weaknesses that has to be dealt with on an ongoing basis is the significant amount of competition from other eateries within the market. While there are usually only a handful of Thai restaurants in any rural or suburban setting, there almost always are other restaurants that are popular among the population drawn needs to make sure that a broad-based lamented in order to ensure that they are able to generate orders on a day-to-day basis.

As it relates to opportunities, most Thai restaurants will seek to expand the revenues by establishing additional locations while concurrently developing a mobile food truck truck that will boost revenues. A food truck can move anywhere while also boosting the visibility given that there is always a tremendous amount of signage that is associated with these types of businesses. The expansion costs related to this type of eatery is moderate.

For threats, these businesses really do not face any risk as it relates to automation technology. Restaurants have been around for several hundred years in a in the foreseeable future people are busier these days – wants to have quick access to quality food. As such, the continued demand for new restaurants is expected to continue moving forward. The ongoing threats that. During economic recessions, there may be some decline in the people like eating at a restaurant.

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