RESTAURATEURS said soaring food prices, rental hikes and the new minimum wage policy are driving them out of business.

Most said business has become increasingly untenable, and they could be forced to shutter as profit margins were thin.

“We’re not making much, so there’s no reason to stay in business,” they said.

Federation of Selangor and Kuala Lumpur Hawkers Association’s complaint unit head Boon Kok Choon told The Malaysian Insight the situation was making it difficult for newcomers.

“If these newcomers do not generate the required volume, it will be difficult as they will not be able to cover their costs.

“Eventually, the business will become unsustainable and they will be forced to quit,” Boon said.

He said if food prices continued to soar, more people in the industry would be forced to close shop.

Boon said in the past, when there was a vacant stall at a kopitiam, a new vendor could be found in a matter of days.

“Now, even if the landlord offers two months’ free rent, there are still no takers.”

Boon said many in the industry felt caught between a rock and a hard place.

“They can’t raise their prices too sharply as it will drive their regulars away,” he said.

“If they raise prices minimally to not anger consumers, they may as well not do business as they would not make any profit. That’s the challenge they are facing.”

Boon hoped the government would take the necessary steps to control food prices, and suggested Putrajaya consider reducing import taxes on food.

Selangor and Kuala Lumpur Hawkers and Petty Traders Association chairman Tan Luan Huat echoed Boon’s sentiment, urging Putrajaya to address “skyrocketing prices” as soon as possible.

Johor Baru Coffee, Restaurant and Bar Merchants Association deputy president Yong Wa Kong said the industry might have to undergo a transformation to survive.

“It’s not just the food costs that have increased and are giving us so many problems. Workers’ salaries are, too.

“Our overall expenses have risen significantly. If we continue to stick to our current way of doing business and raise the price of a cup of coffee by a few sens and hope to stay in business, it won’t solve the problem.

“Business transformation is the only way to survive,” he said, pointing to new cafes.

Yong said these new outlets, many trendy and themed, “allow them to fix higher prices” than old kopitiams could.

“Only by investing to transform grandfathers’ kopitiams into trendy outlets that appeal to a new set of customers can operators hope to survive.”

Yong said the traditional kopitiam was in its sunset years.

“Its numbers will gradually shrink as operators will find it extremely challenging to continue doing business among new, trendy coffee shops,” he said. – October 7, 2023.