THE traditional coffee shop industry is another victim of the Covid-19 pandemic with 2,000 kopitiam closed for good since the movement-control order was introduced, said Ho Sun Mong.

The Malaysia Singapore Coffee Shop Proprietors’ General Association president disclosed that even after the resumption of in-house dining in May, things did not look up as they were required to reduce the number of tables to comply with the standard operating procedure (SOP).

This situation hurt all coffee shops, including tourist magnets in Penang and long-established coffee shops in Sabah and Sarawak.

“It is estimated that the recovery time for traditional coffee shops will be longer. So far, most members say they their business is about 40% of pre-MCO level. It is even tougher for coffee shops in big cities that face higher rents. Coffee shops can only generate small profits and need a large customer base to be profitable.”

Rather than suffer more losses, Ho said some opted out of the business.

Based on feedback from members nationwide, more kopitiam in Penang and Sarawak have chosen to close their business.

“Our members operate about 20,000 coffee shops throughout Malaysia. Some were temporarily closed during the MCO, while some permanently ceased operation. Even established coffee shops with a history of more than several decades are not able to cover the rent and withstand the impact of the pandemic.” 

Penang, as one of the top tourist destinations in Peninsular Malaysia, is still struggling to recover economically.

The lifting of restrictions on cross-state travel, but not international travel, is not sufficient to support kopitiam that rely on tourists on weekdays.   

The Penang Fock Cheow Coffee Shop Owners’ Association president Toon Koon Ku said the RMCO had improved business, but the absence of tourists is sorely felt. 

There are some crowds on weekends and Sundays, but they mainly benefit coffee shops located near the market. The main reason is that customers are still worried about dining in and prefer to take-outs.  

For example, See Kong Ooi, founded in 1936, is closed because of the pandemic. 

“There are 200 traditional coffee shops in Penang, and it is estimated that 15% of them have closed. It is not only the operators that are affected, there are also many people in Penang who are unemployed due to factory closures, and people are afraid to come out to consume.”

He said coffee shops next to markets have a slightly higher business volume except for weekends and public holidays.

Bintulu Coffee Shop Merchants’ and Restaurants’ Association president Hii Hung Yii said the pandemic, MCO and the shortage of foreign workers are posing severe challenges to traditional coffee shops. 

At least 10% to 15% of coffee shops in Sarawak have closed.

Hii is also the deputy president of Malaysia Singapore Coffeeshop Proprietors’ General Association.

There are more than 1,000 traditional coffee shops in Kuching, and Bintulu has hundreds of shops, however, due to MCO and the pandemic, 30 kopitiam have ceased operations.

“We are troubled by the inconsistent enforcement of the federal government and the local government. Is it possible for the elderly and children over 60 to eat out? Some state health departments said no, but the local council government said yes, we are all confused,” he said. 

“In Bintulu, almost 60% of coffee shops are rented, and it is simply difficult to support the rent and salaries from closing. Local people do not work in coffee shops as most of them prefer hiring Indonesian employees.

“After banning the employment of foreign workers and restricting the movement of foreign workers to Indonesia, Sarawak coffee shops are facing severe manpower shortages. Other expenses include full disinfection and purchase of utensils.

“In my estimation, the business volume of traditional coffee shops in Sarawak is down 50% compared to pre-MCO, because there are still many people who dare not dine in.” – August 17, 2020.