RESTAURANTS are heaving a huge sigh of relief after the relaxation of the interstate restrictions in the conditional movement-control order (CMCO), which led to a spike in business, said restaurant and trade associations. 

The industry is relieved that business has recovered by at least 30%. 

Malaysia Koo Soo Restaurants’ and Chefs’ Association president Wong Teu Hoon said business volume of restaurants went up 10% in October and November. 

After the relaxation of restrictions, business volume rose slightly with some areas increasing by 30% to 40%.

“From July to September, the business volume was at the best recovery, which is about 60% to 70%. 

“That time, the business volume is about 30% from Monday to Thursday. And on weekends, the business volume returned to 60% of the pre-pandemic volume.”

Wong said the third wave of Covid-19 was intense as the number of cases spiked and the public feared eating out and traffic to eateries fell.

Takeaway business was also weak. 

To prevent heavy losses, members closed from Monday to Thursday and only opened Friday to Sunday.

Loon Sing Group managing director Sia Boon Kong said during the CMCO, the restaurant business in Negri Sembilan, Johor, Kuala Lumpur and Selangor fell across the board, especially Negri Sembilan, which fell by 80%.

Although the government allowed people to cross state, the business volume of restaurants in Negri Sembilan is still down 50% compared with pre-pandemic.

Johor relies on Singaporean tourists and Malaysians working in Singapore. Now that the border is still closed, business volume is still low, said Sia.

“Recently confirmed cases are more than 1,000 every day, and people are afraid to eat out. 

“Johor relies on tourists and business has not improved. Negri Sembilan has suffered from poor business.” 

However, the easing of interstate travel had helped Selangor and Kuala Lumpur.

“Selangor and Kuala Lumpur have increased their business volume by 10% to 20% after allowing interstate travel.”

The pandemic came under control in July. At that time, many travelled domestically, which supported the tourism, hotel and restaurant business. 

The third wave of Covid-19 outbreak occurred shortly after the Sabah elections. The government announced red zones and blocked inter-state travel, isolating the peninsula from Sabah and Sarawak.

In August and September, restaurant operators thought they had turned a corner and pumped more money into their business, said Sia. 

The reimposition of the CMCO in October brought many operators back to square one.

Koo Soo San Yuen Guild Taiping chairman Law Eu Wei told The Malaysian Insight that the second implementation of the CMCO in Perak caused a 70% drop in the business of eateries. 

With the opening of interstate travel two weeks ago, people started eating out and the business volume bounced by 60%.

As the virus spread cannot be fully controlled at present, many restaurants in Perak have closed and at least 30% of restaurants in Taiping are closed, said Law.

“Now that interstate travel is allowed, restaurants are recruiting employees to restart business.”

Koo Soo Kwong Choon Tong Restaurant and Teahouse Association Penang chairman Vinah Yee Yook Chee said that the association has 400 members. 

Since the CMCO, 50% have closed temporarily with 20% of restaurants choosing to close for good because they cannot afford the mounting losses.

When interstate travel was allowed again, travellers returned to Penang.

“As the situation improves, some restaurants have reopened and changed their signs to make a comeback.

“For example, during the CMCO, some hot pot restaurants closed. Now, they have reopened with advertisements. Some restaurants chose to close all branches and keep the main branch open.” – December 25, 2020.