ALLOWING eateries to open until 10pm is not helping some businesses because customers are spending less, with dining on the premises still prohibited, food and beverage groups said.

The 10pm closing time for deliveries and takeaways was introduced after public complaints about the previous 8pm closing time, which was part of the initial standard operating procedures (SOP) for the current movement control order (MCO) that began nationwide on June 1.

However, in areas outside the Klang Valley, the extension is having little effect as Malaysians opt to cook their own meals to make their savings last as long as possible under a prolonged and indefinite lockdown.

The same is happening even in states that have moved into phase 2 of the national recovery plan, which allows for looser restrictions, coffeeshop association heads said.

Toon Koon Ku, chairman of the Foochow Coffeeshop Owners’ Association of Penang said, although F&B outlets in the state are allowed to open from 6am to 10pm, there is almost no one coming out to buy food after 7pm.

“We are looking forward to dining in. Once they allow customers to come in and dine, business will improve,” he told The Malaysian Insight.

The buying power for many customers is now weak, after more than a year of a pandemic and various lockdowns, which have also caused job losses.

“Now that everyone’s savings have been reduced, consumption habits will change and people will be more frugal. It’s not just coffee shops that are suffering, hawkers are also doing badly.”

Toon said business has not picked up since the first MCO was implemented in March last year. It has only become worse within the confines of the current lockdown.

“Our business has not returned to pre-pandemic levels. People are afraid to go out for fear of catching the virus. Now, to add to fears about infection, they are also afraid you may not get a bed in hospital.”

Coffee Shop proprietors who rent shop lots are faced with RM7,000 to RM20,000 in monthly expenses for rent, salaries and utility bills.

Sin Thin Sang, acting chairman of the Kuantan Cafe, Hotel and Restaurant Association, said though businesses are allowed to open for an extra two hours, Covid-19 cases are still rising.

“Like Penang, Kuantan is also in phase 2 of the national recovery plan and enjoys looser movement restrictions. Yet, people are afraid to go out,” Sin said.

“Even under phase 2, I am less optimistic about business improving.

“Since June 1, our business has declined. We have seen a 10% dip in business. We can’t make ends meet and coffee shop businesses are barely operating.

“The only way operators can reduce expenses now is to lay off employees and run the business themselves,” he said.

Changing consumer habits

Law Eu We, chairman of the Koo Soo San Yuen Guild in Taiping said people are cutting back on takeaways and watching how much they eat, in order to spend less.

“Take away business is shrinking as people venture out less and are saving more by eating less. I know of some who are eating mostly bread to save money,” he said.

There is no way food and beverage operators can ever make up for loss in revenue suffered during lockdowns, Law added. With dining in prohibited, many restaurants have let employees go, hiring part-time staff instead.

“We really don’t see a way forward. We can only hope to get vaccinated soon. When more people are vaccinated, then the rules can be relaxed and dining allowed again,” said Law.

Lay-offs and unemployment

Lim Theng Hui, president of the Kelantan Restaurant and Hotel Association also agreed that extended operating hours does nothing to help their business.

“Dine-in is still banned and people prefer to cook and eat at home now.”

Tax consultant Koong Lin Long said that though the government has provided various stimulus programmes for small and medium sized (SME) enterprises and wage subsidies, the aid available isn’t enough and employers have still chosen to lay off a large number of their workers.

Cash aid, welfare assistance and food baskets by civil society groups can only temporarily alleviate people’s needs, especially for the B40, he added.

Data from the Statistics Department showed that 107,024 people lost their jobs in 2020, and from January 1 to June 18 this year, another 32,760 employees had been laid off.

“The pandemic has affected many Malaysians’ savings as they tap into them to make ends meet and only spend on essential items, cutting back on unnecessary items such as clothing and big meals,” Koong said.

More than a year since the pandemic hit Malaysia, people’s savings are dwindling, while wages have not increased for those people who haven’t yet lost their jobs, he added.

If the lockdown continues, Kong said businesses will only have reserves to last for three to six months at the most. – July 23, 2021.