CANCELLATIONS for wedding receptions at banquet halls since the start of the movement-control order (MCO) have led to millions of ringgit in losses, with the business expecting a bigger hit by year-end.

Malaysia Koo Soo Restaurants and Chefs’ Association president Wong Teu Hoon said all bookings from March 18 to August have been cancelled, with many missing out on the peak wedding season due to uncertainties caused by the Covid-19 pandemic and MCO.

“These bookings are typically at their peak from April to August. If we’re talking about a self-owned business, they can save on rent, but for those who are tenants, rent alone can cost between RM50,000 and RM60,000 a month for smaller halls.

“Monthly expenses for bigger banquet halls, which can seat about 1,000 people or more, can hit RM200,000, including rental and salary.

“These business owners will easily lose about RM2 million to RM4 million each during this peak period,” said Wong, who owns five banquet halls in Malacca.

There are about 1,000 such halls nationwide, and with uncertainty over weddings until year-end, the losses are huge, he said.

Apart from wedding banquet cancellations, other events, such as association anniversary banquets and Chinese temple anniversary bookings, have also been called off.

Wong said 2020 is a good year for weddings, and the industry is missing out on the potential revenue.

It is an auspicious year with matching dates, especially dates like May 20 and June 6, he said, while “post-MCO, we hope couples will choose to tie the knot on October 10 or December 12”.

“As a matter of fact, big restaurants cannot survive from selling food alone, they need banquet weddings to turn a profit.”

Chinese restaurants are still cautious even though dine-in is allowed because of their different method of operation under the conditional MCO (CMCO), which came into effect on May 4.

Wong said a big table at a Chinese restaurant can seat up to 12, and he is unsure if the guidelines mean that such tables are now limited to six people and if tables for 10 are limited to five.

Due to confusion over health and safety standard operating procedures, some restaurants have chosen to remain closed or offer only takeaway services, preferring to wait for the government’s announcement if the CMCO will be lifted on June 9 to decide whether to reopen.

“For now, the smaller restaurants are doing well enough with takeaways, but some of the bigger restaurants are still closed,” said Wong.

“Take Malacca, for example. Some restaurants have yet to reopen. The restaurants there rely on tourist business. Without tourists, it is not worth the health risks or the risk of being fined for inadvertently violating the guidelines.

“In Kuala Lumpur, Selangor, Johor, Sarawak, Perak and Penang, restaurants are slowly reopening. But sales are not very good, while overheads have increased, especially wages.”

The MCO was imposed on March 18, closing down all businesses in a move to curb the spread of Covid-19.

The order was relaxed on May 4, allowing restaurants to open for dine-ins, but with strict health and hygiene conditions in place.

The CMCO is slated to end on June 9. – June 3, 2020.