THE third movement control order (MCO 3.0) is the nail in the coffin for many eateries, restaurant owners said as they cancel dine-in bookings for Mother’s Day this weekend and Ramadan buffets with heavy hearts.

Operators are appealing to the authorities to retract the ban on dine-ins enforced in MCO areas in Selangor and Kuala Lumpur so that they can keep their struggling businesses alive.

They said they are by now used to complying with the standard operating procedures (SOP), but relying on takeaways or deliveries only will not help them recover.

Malaysian Indian Muslim Restaurant Owners Association (Presma) president Jawahar Ali Taib Khan told The Malaysian Insight that without dine-ins, most mamak eateries will lose 70% of their business.

“The government is compassionate enough to allow the restaurants to start operations at 6am during the fasting month,” he said.

“But if we can continue with dine-ins, this will help us survive.”

He said Presma members had called him in desperation after MCO 3.0 was announced earlier this week, urging him to fight for dine-in permission, at least to permit two people to a table.

“There is one week left for Ramadan and it is one week before Hari Raya, please let us do our business well,” he said.

Borrowing from loan sharks

Jawahar also questioned the decision to ban dine-ins, noting that no Covid-19 clusters from restaurants have been reported.

“Even if customers remove their face masks to eat, we are still maintaining physical distancing and sanitisation, so is not an issue,” he said.

“Many of us are really in debt. Of 12,500 members, more than 300 have been wiped out.

“We have workers’ issues and some of them have borrowed from loan sharks to ease their financial situation.”

Jawahar said 60 association members have turned to loan sharks in the past year to pay for rent.

“They are having trouble repaying the debts. Thankfully, there are no suicides, but some have had to go into hiding or have to burden their family members,” he said.

Although the government has launched several financial assistance packages, he said some members are still not entitled to low-interest loans after submitting their documents to the banks.

Some have had to close down their eateries and are stuck with debts owed to loan sharks, he added.

Mother’s Day dining reservations thrown out

MCO 3.0 came just as food business operators hope to boost their revenue on Mother’s Day. But all reservations have now been cancelled.

“Restaurants have bought the ingredients and were ready to prepare the Mother’s Day menu on Sunday,” said Wong Teu Hoon, the president of Pan Malaysia Koo Soo Restaurants and Chefs Association.

“Now that the orders are gone, what do we do with the ingredients?”

As for coffee shops or kopitiam where dine-ins are popular, he said the ban on eating on site is equivalent to shutting down these businesses.

“People do not go to kopitiam for takeaway coffee or tea. They sit down to enjoy their drinks,” said Wong, who is also president of the Malaysia Singapore Coffee Shop Proprietors’ General Association.

He said the dine-in ban will cause a 90% drop in business for coffee shops and a 30% decline for hawker stalls while banquet restaurants will face a total loss.

“We can no longer see an end to this situation. We just hope the government can sympathise with the food industry and allow dine-ins by limiting the number of people per table,” he said.

Last year, dine-ins were allowed only from June to July following the first MCO in March. But another wave of Covid-19 infections from September to November again affected business.

There was some reprieve in December and January when interstate travel was allowed. But business took another hit when restrictions were imposed again earlier this year.

“Restaurants have not made any money in the past year, and we use our principal money to maintain expenses,” said Wong.

It’s just about survival, not profits

Malaysian F&B Operators Alliance co-founder Joshua Liew said there is much disappointment over the government’s inability to control the pandemic.

“The MCO 2.0 did not work, leaving the F&B industry at a loss,” he said.

“The prohibition of dine-in during the fasting month is a big blow to the industry.

“Let’s put it this way, the difference between the turnover of takeaways and dine-ins is more than 50%.”

He said restaurants have made zero profit and their accounts are in deficit today.

“Allowing dine-ins can at least help us pay for expenses; it is not about making money,” he added. – May 9, 2021.