Future looks black for coffee shops under CMCO, work-from-home order


Khoo Gek San

For coffee shop owners in the Klang Valley, the extension of the CMCO, compounded by a work-from-home directive, is a bitter brew to swallow. – EPA pic, October 29, 2020.

A WORK-from-home directive for Covid-19 hotspots in lockdown is more bad news for coffee shop owners.

They told The Malaysian Insight the latest health safety measure was worsening already bad business caused by the conditional movement control order issued last week for the central states and territories.

Malaysia Singapore Coffee Shop Proprietors’ General Association president Ho Su Mong said business had dropped nearly 50% as people stopped dining out in the Klang Valley.

“Before the CMCO, business had recovered about 60% (to pre-epidemic levels) but with the increase in Covid-19 cases, many people are afraid to dine out. Even takeouts have decreased.

“Coffee shop operators predict their business would continue to suffer after the CMCO. They have begun to cut costs.

“But rent, utilities and salaries are not reducible expenses.”

The association recently raised RM1 million to support its members.

But money is increasingly hard to come by as the virus outbreak shows no sign of abating, he said.

Facing financial difficulties themselves, well-wishers can’t afford to help even if they want to, he said.

He called on the government to provide interest-free loans to coffee shop owners in the coming Budget 2021.

“Interest-free loans of RM10,000 to RM50,000 will provide immediate relief. I believe that in a year, the economy will improve and the coffee shop owners will be able to repay the loan.”’

A Malaysia-Singapore group of coffee shop proprietors say business has dropped nearly 50% as people stop dining out in the Klang Valley due to fears of contagion. – The Malaysian Insight file pic, October 29, 2020.

Selangor and Kuala Lumpur Chinese Coffee and Tea Shopkeepers Association president Chris C. H. Lee said members in Klang Valley are scrimping to get by.

“The rent is expensive for coffee shops in Klang Valley, ranging from RM10,000 to RM20,000 per month, depending on the size and location.

“Coffee shop owners have no choice but to ask for rent reductions. They’re also trimming workers and have laid off foreign hires.

“The industry is also worried about health safety and has cut business hours. They only serve breakfast and lunch and are ready to close by 3pm or 4pm,” he said.

Some coffee shops encourage their customers to opt for takeaway instead of dine-in.

“In the current market conditions, it’s even hard to close shop. No one wants to take over the business at this time.

He said hawkers who have joined h the food delivery platform are doing well. However, their costs have gone up.

The CMCO for the Klang Valley, which was to have expired yesterday, has been extended until November 3. – October 29, 2020.


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