2 weeks Ago
The planned closure of the famous Michelin one-star restaurant Jay Fai reflects a string of problems in the food supply chain, particularly high energy and raw material costs , according to the Restaurant Business Club. Jay Fai , which has received a one-star Michelin rating in the Bangkok edition of the guidebook since 2018, made headlines on Monday as Supinya Junsuta, the restaurant's owner and chef, reportedly admitted to local media that she is preparing to close her business next year. One of the reasons cited for the planned closure is rising logistic costs, which resulted in a surge of up to 10% in the cost of seafood compared to this year's first quarter, said Sorathep Rojpotjanaruch, head of the club.
He said natural disasters, both drought and floods, play a crucial role in agricultural production and supplies. The prices of several vegetables rose sharply following weeks of floods in the country's northern and northeastern region. For example, the price of coriander has now reached 240 baht per kilogramme, up from 160 baht per kg prior to the floods.
“Restaurant operators are tired of the rising costs. We try to keep the cost of raw materials at a rate of less than 35% of our combined costs, but now the proportion can be as high as 40%, which affects our margins,” said Mr Sorathep. Mrs Supinya, better known as “Jay Fai”, announced her plan to retire due to her advancing age and rising costs.
The announcement was widely reported in local media outlets. The restaurant, located in Bangkok’s Phra Nakhon district, has managed to maintain its Michelin star since 2018. Thapanee Kiatphaibool, governor of the Tourism Authority of Thailand, said it would be unfortunate if the well-known roadside eatery were to close as the restaurant has long helped Thailand to promote soft power via its gastronomy culture.
Jay Fai is well-known for lifting up the reputation of street food to the international level . However, in a recent interview with the media, the owner said the rising cost of raw materials is due to high demand for raw materials, while suppliers have more control over the price of these items, which creates challenges for businesses. Mrs Supinya, 81, hinted several times that she would take a break as she gradually reduced the restaurant’s operating days from six to four per week.
She admitted that running the business is very tiring as she personally checked the quality of raw materials early every morning. According to Mrs Supinya, as her daughters will not inherit the business, she would share her recipes with others, while switching to work in other areas of the food industry instead, such as already-launched collaborations with Korean food companies..
