Raya fails to translate into more money for F&B operators


Khoo Gek San

Grab Food riders collecting an order from a restaurant in Kuala Lumpur during the conditional MCO yesterday. Deliveries are eating into the profits of many food and beverage outlets. – The Malaysian Insight pic by Afif Abd Halim, June 2, 2020.

THE relaxed restrictions that allow dine-ins during the recent festive period failed to translate into more income for restaurant owners.

They said even with the increased crowds amid the festivities, eateries missed the peak business period because of continued fear of Covid-19 and the government’s strict standard operating procedures.

Many only managed to maintain their daily turnovers as they still have to pay rent, wages and other overheads, they said.

In addition, the increased traffic in shopping centres during the Hari Raya Aidilfitri weekend turned restaurants into health and safety blind spots as it was difficult for restaurant operators to implement the needed measures.

MyBurgerLab co-founder Chin Renyi said the burger chain remained open during the movement-control order period but was making less money as it had to rely on deliveries.

With the conditional MCO, he said, sales increased 50%, which translated into 60% to 70% turnover while the franchise still has to pay overhead costs and wages.

One of its outlets is open for dine-in,but sales did not increase by much due to the need to adhere to health and safety SOPs.

“The outlet could seat 100 people, but due to social-distancing measures, it can now only seat 50. During the lunchtime peak hours, there are only about 20 people, with maybe 30 during dinner time.

“Many customers still avoid dining in out of fear that they will contract Covid-19,” he said, adding that 70% of its sales are now from deliveries and 30% from takeaways.

Diners registering before entering a restaurant at a shopping mall in Penang soon after the conditional MCO kicked in last month. Food and beverage outlets in malls are doing better than those in stand-alone locations, says a trade group. – AFP pic, June 2, 2020.

Malaysian F&B Operators’ Alliance spokesman Joshua Liew said when the CMCO first started, some restaurants and cafes offered takeout only and just resumed dine-in services recently but not many patrons are taking up the offer.

“F&B businesses are generally performing badly in terms of sales during the CMCO, not many people dare to eat out right now,” Liew said.

Restaurants and eateries in shopping malls are generally having a better time compared with other places, he said.

Liew, who is also Espresso Lab CEO, said cafes are not restaurants and not many people will sit in the premises just for a cup of coffee.

“Since the CMCO started on May 4, there was a period of time where we only sold three cups of coffee over three days. Business is really bad.”

Asked if restaurants are practising health and safety SOPs, Liew said some eateries have neglected it when they get busy, especially during the festive period when some restaurants appear packed.

“Cafes in shop lots are more packed and we are optimistic that business will improve. It’s been quiet for the past two months, if business picks up again then that’s good, but health and safety SOPs must remain in place.”

According to other F&B operators, throughout the festive period, lines of patrons have formed outside some restaurants and social-distancing guidelines seem to have been neglected.

The government imposed MCO 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 a strict health and hygiene conditions in place.

The CMCO is to end on June 9. – June 2, 2020.


Sign up or sign in here to comment.


Comments