As night fell, neon signs gradually lit up Instagrammable restaurants and cafes. Despite pouring rain, tourists were taking photos of a dessert shop's logo of a boy holding a bun at an iconic intersection. Some eateries were teeming with customers, with a long queue of them spilling onto the sidewalk. Some, less popular, saw staff sitting idle. Others put up advertisement for lease.
Banthat Thong Road has undergone chameleonic changes in a couple of years. Starting from Charoenphol Intersection to Rama IV Road, its 1.5km stretch has grown from a quiet neighbourhood of run-down shophouses to Bangkok's landmark food street. It has been dubbed the "Second Yaowarat" by food bloggers. It was also named the world's 14th coolest street in 2024 by Time Out.
However, since earlier this year, the departure of restaurateurs from the area has made headlines. A viral post by a famous eatery leasing its business in February sparked a debate about its operating cost. After 30 years of serving chicken rice, Kanokwan Srikamonsirisak, better known as Jay Bo, closed her shop in April because she struggled to afford the rent. After eight years, Bualoy Parinya also downsized its business by sharing its space with Steak Ahma to keep up with the rising cost.
Last month, Sittichan Vuttipornkul, adviser to an association of local restaurateurs, said there are around 300-400 operators that line the street. At its peak, there were 20,000-30,000 visitors per day, generating at least 7 million baht. However, the sluggish economy has now caused overall revenue to drop by half. Restaurateurs have also faced criticism for overpriced and disappointing food.
"If there is no support, over 40% of restaurants will close down in six months," he said.
The boom and bust of Banthat Thong Road raises the question of redevelopment and gentrification -- a term coined by a sociologist in reference to the phenomenon whereby affluent residents gradually take over poorer quarters, displacing former tenants and uplifting the social status of the area -- at the expense of community belonging.
Nueng Nom Nua's boy and bun logo. (Photo: Thana Boonlert)
WINDFALL DEVELOPMENT
Chulalongkorn University owns around 1,153 rai of land in this area. While 637 rai is used for education and 131 rai is leased to state agencies, the Property Management of Chulalongkorn University (PMCU) manages commercial districts, mainly Siam and Sam Yan, spanning over 385 rai. Its portfolio includes Suan Luang-Banthat Thong, which are described as a "new hipster spot with street food" on its website.
In an interview with Prachachat Business in January 2024, Assoc Prof Jittisak Thammapornpilas, vice-president for property and physical resources management at Chulalongkorn University and director of PMCU, traced the beginning of Banthat Thong to an area once surrounded by slum communities. The university divided it into blocks and created shophouses for rent, which were occupied mostly by the Chinese from Yaowarat and Talat Noi.
Suan Luang-Banthat Thong was known for automobile and sports stores and their activities often blocked the road. As urbanisation gathered pace, they gradually declined. A turning point came in 2018 when Stadium One was opened as a hub for sports enthusiasts, but it failed partly due to Covid-19. However, a concessionaire happened to bring in popular restaurants and it took off.
As eateries from Yaowarat spread to the area, they became a magnet for foreign tourists, especially Chinese, Vietnamese and South Korean. Social media also helped fuel a lot of fanfare, putting the once-neglected neighbourhood on the map. Restaurants in Suan Luang-Banthat Thong were estimated to generate 300-400 million baht per year.
Soy Milk by Jay Wan. Photo: Varuth Hirunyatheb
However, business operators in the area are subject to three-year contracts and rental prices vary from 20,000-100,000 baht, depending on size and zone.
Assoc Prof Jittisak explained that the development of Suan Luang-Banthat Thong took no specific form and depended on urban environment, trend and its potential. It also focused on basic infrastructures and services. However, the PMCU ensured that its development was inclusive of blue-collar workers, such as security guards and cleaners. The space was later allocated for street vendors to provide affordable food.
LACK OF ECOSYSTEM FOR BUSINESS
"The rent is part and parcel of every dish we have. Stakeholders, especially landlords, have vested interests in the city's high cost of living," said Artit Gowitwarangkul, an economic commentator on FM96.5 and translator of David Harvey's Rebel Cities: From The Right To The City To The Urban Revolution. He graduated from Chulalongkorn University Demonstration Secondary School and Chulalongkorn University's Faculty of Economics, both of which are located in Sam Yan.
"The closure of old businesses like Jay Bo is understandable to some extent. But the merger or departure of new businesses like Bualoy Parinya should be a wake-up call for how high the rent is despite their capacity," he said.
Artit said food businesses are a significant driver for landlords. He attributed the boom of Banthat Thong Road to four factors. With the advent of the internet, consumers buy more than food -- they crave for experiences that carry symbolic meaning. Because of technological change, content creation allows users to craft their desired persona on social media. Its popularity was also attributed to tourists. Earlier, there was no mass transit to Yaowarat as Wat Mangkon MRT Station had not yet opened. Finally, Covid-19 brought about a "quiet revolution" in the food industry. As consumers shopped online and delivery platforms gained momentum, the number of food businesses dramatically increased.
"I think the underlying logic for restaurateurs was to take a bet on Banthat Thong Road. After Covid-19, there were few magnets for diners, so they flocked to the better location, but at their own risk," he said.
Artit Gowitwarangkul. (Photo: Thana Boonlert)
Artit said a plea for government support by an association of local restaurateurs merely "protects the bubble". As PMCU lacks a clear plan to redevelop the area, it simply grabbed the windfall opportunity by maximising rent. Meanwhile, tenants are left to work out strategies, including sponsoring influencers to review restaurants. However, the lack of an ecosystem that is crucial for businesses to thrive persists across the university's surrounding redevelopment projects, such as Suan Luang Square and I'm Park.
"This is a classic problem when developers build a new city. Can we really predict the outcome? Accordingly, many smart cities bear no relation to reality on the ground. Developers often ignore this fundamental ecosystem. Chula owns too much land and craves too much money to think out of the commercial box. Despite an oversupply of shopping malls, capitalists have been inflating more and more of them. This is a mechanism by which they are finding ways to go forward," he said.
"However, the economy can't be sustained by the richest 1%. Once tourism is no longer a reliable source of revenue, what will the harsh reality lead to?"
Bualoy Parinya downsized to share space with Steak Ahma. (Photo: Thana Boonlert)
LOSS OF COMMUNITY
"I spend my whole life within a 20m radius [of my house]."
That is why a tenant in his 50s knows how much his community has changed. Residents from his generation have either passed away or have been priced out of their rented houses. But the pace of transformation is getting faster. Behind the glow of neon signs, he unearthed from memory a map of places that have vanished.
"Five years ago, I used to visit my favourite food shop. But it moved out to make way for a stewed pork knuckle eatery, which is also now replaced by a chain restaurant," he said. "Athens Tailor is probably the last survivor standing its ground."
As Covid-19 affected his business, his family moved away from the roadside to pay lower rents at a fixed rate while others have left the area. In his view, social media reviews attracted newcomers to cash in and enhanced the area's glamorous image for hipster street food.
"However, rent increases, short opening hours and lack of parking space have made it difficult for them to stay," he said. "Business turnover can be as short as six months. When I look around, there are not any familiar faces."
After selling food in Banthat Thong for four years, a street vendor observed that the soaring cost inevitably forces restaurateurs to offer only premium dishes to stay afloat. For example, a piece of egg tart is almost 100 baht. The neighbourhood has lost its sense of community.
"Now, there are only business operators flexing muscle," he said.
Artit proposed that the PMCU should ensure accessibility for people of all backgrounds, for example by improving a tier system for tenants. Otherwise, setting a high rent will attract only those that aim for high returns and price out losers.
"Following comments about selling overpriced and unappealing food, the question is whether Banthat Thong Road is perceived as inauthentic. If that is case, it will eventually collapse. Maximising the rent creates a condition that will bring in more speculators," he said.
"As Chula has set the rules of the game this way, it can reverse the trend by enhancing diversity of players to make a lively food street," he said.
