NEARLY 600 coffee shops have closed temporarily since the implementation of conditional movement-control order in mid-October, with the same number facing closure in the coming months, said proprietors.

These traditional coffee shops (kopitiam), most of which were located in the Klang Valley, have suffered a severe drop in business as a result of the CMCO, they said.

Malaysia Singapore Coffee Shop Proprietors’ General Associations president Ho Su Meng fears that the figure will continue to escalate in the coming months.

The CMCO – which remains in Kuala Lumpur, Selangor and Sabah until year-end – has seen people cut back on eating out for fear of contracting Covid-19, causing the kopitiam business to plummet.

In August, the association reported that 2,000 kopitiam closed down for good since the implementation of the MCO in March.

The association has 20,000 members across the country.

“According to reports from members across the country, at least 500 to 600 coffee shops have chosen to close down temporarily,” Ho told The Malaysian Insight.

“If people are not encouraged to go out and drive the domestic economy, another 500 to 600 coffee shops have to close in two to three months.

“I am afraid that we’ve lost 3,000 coffee shops because of the pandemic this year.

“Their reserves are exhausted. Many are keeping their shops open while worrying about potential fines if not careful with restrictions.”

Tough enforcement

Selangor and KL Chinese Coffee and Tea Shopkeepers’ Association president Chris Lee said one of the reasons for the closure of coffee shops in Selangor is the tough enforcement.

He said the industry was already facing a sharp decline in business volume and further burdened by fines for breaching the standard operating procedure.

“After the inter-state ban was lifted two weeks ago, we saw crowds. There were no restrictions on dining seats but we still observed physical distance. As such tables would not be full.

“However, law enforcement agencies keep coming to ‘disturb’. We have consulted the local authorities regarding the SOP but fines are imposed for every little problem.”

Lee said operators in Selangor faced the hardest time from January to March. Businesses slowly recovered by 60% to 70% in September before the third wave of epidemic hit.

“There are not many customers as people work at home. And the rental in Selangor and Kuala Lumpur is high, ranging from RM10,000 to RM20,000. 

“Businesses that can’t support it will have to close temporarily.”

No signs of crowds

Lately, the relaxation of the SOP, such as cancelling the number of persons per dine-in table, has helped coffee shop owners, said Ho.

But despite the relaxation, the industry stays watchful on physical distancing. Because once a coffee shop is associated with infection cases, it will be difficult to continue operating.

There were crowds in Malacca and Ipoh after the government lifted the inter-state ban. However, some areas, such as Segamat, Muar, Johor Baru and Seremban, are still deserted on weekends because of the higher Covid-19 cases, he said.

“Penang has not seen tourists crowd, but Cameron (Highlands), Malacca and Ipoh have seen an increase in tourists.

“We expect more people to spend during the long Christmas and New Year holidays,” Ho said.

Coffee shops in Butterworth, the Klang Valley and Johor Baru rely on tourists while sustaining high rents, he added.

Lower spending power

Tawau Food Operators’ Association chairman Chau Oi Keong said many coffee shops have reduced staff, while families, too, have stopped eating out.

He said operators risked their lives to open coffee shops after the number of Covid-19 cases increased sharply following the Sabah elections.

“The market conditions are sluggish. Many local employees or migrant workers have been affected by the epidemic with reduced wages and therefore, less dining out.

“A food court that I opened is close to the government office building, so civil servants will come to eat as usual.”

Chau said restaurants have no income to pay salaries and 20% of coffee shops in Sabah are closed because they cannot support the expenses.

He said Tawau is not a tourist spot and relies on Semporna for business. – December 23, 2020.