Restaurant sales down 30 percent, owners claim
A press conference organized by the Bangladesh Restaurant Owners Association. Photo: Agamir Somoy
The country’s restaurant sector is facing a severe crisis due to rising commodity prices, fuel shortages, higher gas and electricity costs, increased operating expenses and harassment in the name of raids by various government agencies. As a result, overall restaurant sales have fallen by up to 30 percent, the Bangladesh Restaurant Owners Association claimed.
Association Secretary General Imran Hasan made the remarks at a press conference held at Fars Hotel & Resorts in Paltan in the capital on Saturday afternoon.
At the event Imran presented nine demands to the government to sustain restaurant businesses, preserve employment and ensure safe and quality food for consumers.
In his written statement Secretary General Imran Hasan said the prices of essential food products and raw materials are rising uncontrollably along with gas, electricity and fuel costs, workers’ wages and other operating expenses. However, it is not possible to increase food prices in line with the rising costs. As a result, sales and income at restaurants have declined due to fewer customers. Many establishments are struggling to survive.
“Restaurant sector is not just a business sector; it is an important part of employment, food supply and the urban economy. If the crisis in this sector continues, a large number of people will lose employment and related businesses will be affected,” Imran Hasan added.
The organization claimed that almost all types of operating costs in the restaurant sector have increased including electricity, gas, water, rent, transportation and labor costs. On the other hand, raising food prices could lead to a loss of customers. In this situation it has become difficult to maintain normal business operations.
The Bangladesh Restaurant Owners Association presented nine demands to the government to address the crisis. The demands are:
Rapid implementation of a one stop service for operating restaurant businesses; an end to unjustified intervention by district administrations in setting food prices by restaurant owners in line with rising commodity prices;
An end to harassment by government officials in the name of VAT collection and complete withdrawal of the 10 percent supplementary duty and 2 percent tax at source; an immediate resolution to the LPG and fuel crisis and reduction of load shedding.
An end to harassment of restaurant owners and unreasonable financial penalties in the name of raids by various government departments; rapid implementation of the decision to declare the restaurant sector an industry, formulation of a specific industrial policy for the sector and implementation of the initiative to make association membership mandatory.
Permission must be given to import beef; ensuring a business-friendly environment by ending harassment and extortion over allegations of businessmen’s affiliation with various political groups and taking initiatives to train restaurant sector workers, provide incentives and upgrade the restaurant industry to international standards.
At the press conference Imran Hasan further said coordinated initiatives by relevant government and private stakeholders are needed for effective regulation and oversight of the restaurant sector and to ensure food safety. He urged the authorities to consider the demands of restaurant owners and take effective measures quickly.
