Chinese investment in Thai restaurants aims for global franchise expansion

As of December 31, 2024, data from Thailand’s Department of Business Development reveals that Chinese investors play a significant role across various industries. A total of 30,075 Chinese-invested entities have been registered in Thailand, with a cumulative investment value of 415,582.68 million baht.

Top 10 Chinese Investment Sectors in Thailand

Real Estate – 25.014 billion baht
General Building Construction – 6.536 billion baht
Wholesale of Machinery & Equipment – 3.013 billion baht
Food Services (Restaurants & Dining Establishments) – 3,007 billion baht
Real Estate Agents & Brokerage – 2.680 billion baht
Wholesale of Fruits & Vegetables – 2.495 billion baht
General Wholesale Trade – 1.232 billion baht
Tourism & Travel Services – 1.111 billion baht
Commission-Based Wholesale Trade – 1.036 billion baht
E-commerce (Online Retail) – 655.86 million baht

The data highlights the diversification of Chinese investment in Thailand, spanning real estate, services, food, and wholesale and retail trade. Notably, real estate remains the most significant sector, receiving the highest investment from Chinese investors.

Booming Chinese Restaurant Industry in Thailand

The Chinese restaurant business in Thailand has expanded rapidly, driven by a surge in Chinese capital in the food industry. Once a niche market, Chinese cuisine is now thriving in major cities and key economic zones, including Yaowarat, Huai Khwang, Ratchadaphisek, Lat Phrao, Sukhumvit, and Ram Inthra. 

Chinese Restaurant Brands Expand Rapidly in Thailand and ASEAN

Renowned Chinese restaurant brands are not only establishing a presence in Thailand but are also expanding aggressively. Both established and emerging brands, such as Mi Xiao, Cotti Coffee, and Haidilao, are rapidly opening new branches. Their strategies focus on quick market penetration, competitive pricing, and tailored menus that appeal to Thai consumers.

Economic Downturn in China Fuels Expansion to ASEAN

The growth of Chinese restaurant businesses is not limited to Thailand but is occurring throughout ASEAN. According to a 2025 report by The Momentum Work, a key driver behind this expansion is China’s domestic economic downturn, which has forced many restaurants to shut down. In the first half of the previous year alone, over 1 million Chinese restaurants closed, accounting for a 40% decline year-over-year. As a result, business owners are seeking new markets abroad.

ASEAN: A Strategic Market for Chinese Restaurants

ASEAN has become an attractive destination for Chinese restaurant operators due to:

Lower competition compared to China’s saturated market.
Rapid economic recovery post-Covid-19.
Familiarity with Chinese cuisine, particularly in Singapore and Malaysia, where a large portion of the population speaks Chinese, making market entry easier.

Chinese Investment in Thai Restaurants Surges to Nearly 60% in 2024

According to Thailand’s Department of Business Development (DBD), Ministry of Commerce:

2022: 6,581 newly registered restaurant businesses, with 0.52% Chinese investment.
2023: 8,046 new restaurant businesses, with 26.21% Chinese investment.
2024: 8,119 new restaurant businesses, with 58.78% Chinese investment.

This data highlights a significant increase in Chinese investment in Thailand’s restaurant sector, reflecting the growing influence of Chinese capital.

Booming Chinese Restaurant Industry in Thailand

Paisarn Aowsathaporn, Senior Executive at Thai Beverage Public Company Limited, stated that Chinese restaurants in Thailand have seen continuous growth, especially after the country reopened its borders.

Key drivers of this trend include:

Thais’ long-standing familiarity with Chinese cuisine.
The return of Chinese tourists, boosting market demand.
Expansion of Chinese restaurant brands, further driving popularity.

“Thai consumers are increasingly embracing diverse food cultures, making Chinese cuisine a top choice. Additionally, social media plays a vital role in raising awareness through reviews and viral content, allowing Chinese restaurants to reach new customer bases more effectively,” Paisarn noted.

Chinese Restaurants Eyeing Thai Recipes for Global Franchising

One of the key advantages for Chinese restaurant businesses is lower raw material costs, according to Supak Meunnikorn, founder of the Food Franchise Institute (FFI) and CEO of Easies International Franchise Co., Ltd., which operates the “Siam Steak” hamburger and “Easies” premium sausage brands. He explained that several factors make Thailand an attractive market for Chinese restaurant entrepreneurs:

24-Hour Eating Habits: Thai consumers have diverse eating habits, with a strong preference for eating out at all hours.

Tourist Hotspot: Thailand is a popular destination for Chinese and global tourists, creating opportunities for Chinese restaurants targeting international customers familiar with Chinese cuisine.
Affordable Ingredients: Thailand’s import tax policies are favorable for bringing in ingredients from China, keeping overall ingredient costs competitive compared to other countries.
Strong Investment Capacity: Chinese restaurant owners are often well-funded, enabling quick investment in marketing, interior design, and expansion.

This combination of factors positions Thailand as a gateway for Chinese restaurant businesses looking to franchise globally.

Supak stated that the competition between Thai and Chinese restaurants in Thailand is intensifying, particularly in terms of ingredient prices, labor costs, and rental fees. Insider information reveals that many Chinese entrepreneurs are learning Thai recipes to develop and expand them into Thai food franchises in China and beyond.

"Chinese investors do not lack restaurant management systems; what they seek is the recipes and knowledge of local Thai ingredients," he explained. "China has advanced cooking technology, especially in terms of temperature control and food preparation. Additionally, Chinese cuisine is known for its complex use of herbs and spices, which often surpasses the complexity found in Thai dishes."

Looking ahead, Thai restaurants will face significant challenges in maintaining competitiveness in terms of quality, price, and customer experience. If Thai restaurants are to survive, they must urgently develop service standards, management systems, and digital technology to compete with foreign brands that have more organized management structures and lower costs.

"The growth of Chinese restaurants in Thailand signals a clear shift in the restaurant market, and Thai operators must adapt quickly to maintain market share and differentiate their businesses," Supak concluded. "For Thai restaurants, beyond increasing competition, there are opportunities to implement strategies such as creating unique selling points, adjusting menus to cater to foreign customers, or using technology to reduce costs."

Top 5 Chinese-Backed Restaurant Businesses in Thailand

Here are the top 5 Chinese-invested restaurant businesses currently operating in Thailand:

Smart United (Thailand) Co., Ltd.

Registered Capital: 35 million baht
Chinese Investment: 139.99 million baht (49% stake)

JIUSI HOTPOT CO., LTD.

Registered Capital: 139 million baht
Chinese Investment: 68.11 million baht (49% stake)

SIRISAENGMANEE CO., LTD.

Registered Capital: 87 million baht
Chinese Investment: 42.63 million baht (49% stake)

KRUA RUENROM CO., LTD.

Registered Capital: 61 million baht
Chinese Investment: 29.89 million baht (49% stake)

R ZEE SAWAT CO., LTD.

Registered Capital: 60 million baht
Chinese Investment: 29.4 million baht (49% stake)