FOOD-DELIVERY services are a lifeline for restaurants after the coronavirus and movement-control order (MCO) decimated dine-in business.

Food operators are keeping themselves afloat with the revenue from customers who order online as the MCO is imposed to break the chain of Covid-19 transmissions.

But on the other, restaurants are forced to jack up their prices to make up for the huge cuts these delivery services take from them, said restaurateurs.

Delivery riders, meanwhile, told The Malaysian Insight that their incomes have also declined during the MCO as customers stayed home and cooked their own meals.

“If I didn’t raise my prices to make up for the commissions, I would lose more money than what I am already suffering,” said Muhammad Alif Firdaus Anual, who operates a shop in Shah Alam.

The commission rates are not new and agreed on between food operators and delivery service even before the MCO, said Alif.

To cover the commission, Alif is forced to increase prices in the delivery services’ menu than at his outlet.

“For instance, if fried rice is RM7 at the shop, it is RM9.50 in the online menu. So, when the delivery service takes their 30% cut, we are still be able to earn the same amount from the dish.”

Ever since the MCO began on March 18, which banned dining in restaurants, 70% to 80% of his  income comes from the delivery service.

Even then, the deliveries are not enough to cover operational costs and he is forced to spend between RM200 and RM400 of the company’s savings to pay for labour, raw materials and utilities.

Alif estimates that his business, which still has eight people on its payroll, has lost about RM10,000 since the MCO.

His restaurant now makes about RM5,000 per month as compared to the RM15,000 to RM30,000 before the MCO.

“To save costs, I also make house deliveries,” said Alif, who used to also work as a food delivery boy before opening the restaurant.

Saddam Hussein was forced to increase his prices in the food delivery app he uses by 18% to make some money.

“My store is still new on the app, so I get about five to eight orders per day,” said Saddam, who runs an Indian-Muslim restaurant which employs eight workers.

Since the MCO began, Saddam’s outlet is making only about RM100 per day.

Restaurants have been among the worst hit by the slowdown in consumer spending as citizens have been told to stay at home during the MCO.

Putrajaya on Monday announced an additional stimulus package worth RM10 billion to help struggling small- and medium-sized enterprises (SMEs) affected by the Covid-19 pandemic and the subsequent MCO.

Prime Minister Muhyiddin Yassin said SMEs contributed 40% to the economy, adding that it was, therefore, necessary to sustain the companies through these trying times.

Muhyiddin unveiled a slew of incentives, ranging from an improved wage-subsidy scheme to microcredit as relief to different sectors in the SME sector, including those operating at the restaurant front.

More home cooking

The MCO was enforced as Putrajaya struggles to contain Covid-19 infections, which until yesterday stands at 3,963 cases while the death toll climbed to 63.

Although food-delivery riders are among the most frequently spotted vehicles during the MCO, riders, such as Mohd Firdaus Hasri, said their earnings have declined.

“I used to make about RM1,500 per week before the MCO. Now it has dropped to RM1,000 per week. Maybe it’s because people are cooking at home more,” said the 21-year-old from Kedah.

The only upshot is that since petrol prices are low, Firdaus is able to save on costs when going out on his rounds.

“Now with RM8, I can fill up my Honda EX5 twice,” said Firdaus, compared with before when one full tank would cost him RM8.

Another rider Afham Hasyari Mohd Noor said he is making more deliveries under the MCO to make about RM1,000 per week.

“I have to make about 30 deliveries per day in order to hit the target. Before, I used to make up to RM1,500 per week,” said the 21-year-old.

But for student Wan Amirul Wan Zulmuni, the delivery service is a blessing for him and his friends who are trapped on campus with nothing to do.

“At least me and my friends can earn some extra pocket money and I can send back money to my family in the kampung,” said the 23-year-old, who is studying at the Universiti Teknologi Mara Puncak Alam campus.

“Instead of just sitting around doing nothing, at least I am earning between RM300 and RM500 per week.” – April 8, 2020.