FOR Patrick Cheng Yi, the Covid-19 outbreak sounded the death knell for a chain of Thai restaurants he has been running for 13 years. 

“It’s most likely we won’t survive. Even after the MCO (movement-control order) is lifted, I think consumer behaviour would have changed drastically,” said the 41-year-old proprietor of myELEPHANT restaurants in Kuala Lumpur and Petaling Jaya. 

It is a fate Cheng believes many restaurants will share even if the nation survives the outbreak that has claimed 45 lives so far and led to a partial nationwide lockdown. 

“There will be some that will have to shut down. Perhaps some will change their formats, either by downsizing or selling other stuff.” 

Cheng’s outlets only deliver food during the MCO, with revenues are at only 20% of what was before the coronavirus outbreak.  

The figure echoed data recently tabulated by the Malaysian F&B Operators Alliance, made up of nearly 200 restaurants.  

The restaurants polled have experienced an 83% drop in business and will likely suffer RM105 million in losses in the month-long MCO period from March 18 to April 14. 

The survey released last week shows that only 20% of restaurants remained open during the MCO.  

Up to 30% of eateries ceased operations while the remaining half saw partial operations, such as reduced hours or operations at selected outlets.  

Jennifer Quah, who runs the Asian cuisine Sitka restaurant and other food outlets, took no chances with the coronavirus and closed entirely.  

“We have taken the decision to close our outlets. We feel it’s the responsible thing to do. The peak of infections has yet to come and we simply cannot risk the safety of our teams and customers.” 

Quah said the decision was made because managers could not have “100% clarity” on the movement of staff, guests, suppliers and delivery workers not under their immediate supervision. 

“I think we don’t yet know the full economic impact of this pandemic,” she said. 

Pan-Malaysia Koo Soo Restaurants and Chefs Association estimated cancellations to average as high as 90% until May for all dinner functions and wedding events.  

“We hope the government can provide assistance to the industry,” said its president, Wong Teu Hoon.  

Ku Su Shin Choong Hung Restaurant Association president Lum Tuck Loy estimated losses suffered by associated restaurants to be at least RM50,000 per week.  

‘People are afraid to come out’

Despite the MCO, the government has ordered all employers to pay their workers full wages.

Darren Chin, who runs cuisine restaurants DC and Bref, foresees it will not be like the old days, even after the MCO is lifted.

Chin believes there may be a knock-on effect, where “people are going to be afraid to come out to public places”.

“Customers will expect stricter control on staff hygiene and health, for one thing, and dining habits may change, if only due to the immediate economic shock. I expect the public will be more discerning and demand a better return for their money. 

“Restaurants with high turnover would need to take a step back and focus on safety. It can’t be all about turning tables like crazy and maximising revenue, like it was in 2019.”

Chin has closed his restaurants, with no takeaways as he could not “guarantee the condition or presentation of the dishes”. He is instead focusing on conducting cooking demonstrations on Facebook Live. 

“One of the main pillars of our business is about maintaining close relationships with clients, and this is important even when the MCO prevents us from being together. 

“Every business should have some cash reserves but these will deplete gradually. We are all waiting patiently for the MCO to be lifted so we can get back to work.” – April 2, 2020.