Manpower shortage hits restaurant business hard


Restaurant and bistro owners say they cannot cash in on the uptrend of eating out just yet due to "acute" staff shortages. – The Malaysian Insight file pic, May 14, 2022.

EATING out is on an uptrend after Covid-19 restrictions were eased on May 1 but restaurant and bistro owners moan they cannot cash in on it just yet due to “acute” staff shortages.

Rising food prices are also impacting them after a two-year slumber that has seen some of their peers fold up for good.

Restaurant and Bistro Owners Association (PPRB) vice-president Jeremy Lim summed up the general feeling when he said what they are doing now is “about maintaining operations rather than making money”.

Lim said the labour shortage is serious.

They fear the shortage would affect service as patrons have to wait longer for food and this could lead to dissatisfaction which could see them not returning.

Like most economic sectors that are dependent on foreign workers, chefs, cooks, and waiting staff returned to their home country when Malaysia imposed the movement control order (MCO) to curb the spread of Covid-19, Lim said.

During the MCO, places which were deemed high-risk for the spread of the virus were ordered shut temporarily.

Lim said even though the country is in the transition phase to endemicity now and positive cases have dramatically fallen, the local workers who have returned to their hometowns are still afraid to return to work in the Klang Valley for fear of another round of MCO-like restrictions.

Since the reopening of the borders on April 1 and during the recent Hari Raya Aidilfitri holidays, restaurant owners said business had never been so good in a long time.

The Malaysian F&B Operators Alliance (MyF&B) spokesman Joshua Liew told The Malaysian Insight that many of its members, especially those located in tourist areas, have seen their business pick up, particularly during the Raya holidays.

Like Lim, Liew said the biggest problem faced by his members is the lack of staff.

Liew said big restaurants that need seven kitchen staff to work at optimum efficiency are now only fielding four to five.

Raising their salary to compensate them for the extra workload is not an answer, he said.

“These people need to have off days. On days like public holidays when they are super busy, the staff will have to be on their feet all the time.

“There’s no time to take a break.”

Good Raya period business

To meet the shortage, Liew urged the government to consider allowing eligible refugees to work.

“We don’t know why locals don’t want to work. Only foreigners are willing but unfortunately many have returned to their home country.”

Wong Teu Hoon, president of Malaysia Koo Soo Restaurants and Chefs’ Association, said many restaurants were caught out by the sudden surge in business during the Raya holidays.

He said many of his members had stocked up their inventory for what they calculated for use over five days of business. Their inventories was depleted in two days.

“Many of them were forced to close early,” Wong said.

He said restaurants and cafes in semi-urban areas are doing well.

To meet labour shortages, Business owners urge the government to consider allowing eligible refugees to work. – The Malaysian Insight file pic, May 14, 2022.

He said the queue for tables was especially long during Raya with some waiting for more than an hour.

Wong praised the young patrons for their patience.

“Their hand phones helped them pass the time while queuing,” he said.

“They are willing to wait even if the queue is long.”

Wong said it had been a long time since he’s seen such good business during the Raya period.

“The bosses and staff worked hard and with a smile on their faces.”

He said the brisk business the restaurants and bistros are experiencing now is only 70% of the pre-pandemic level.

“We have not yet recovered 100% yet.”

In an effort to hang on to the workers they have and prevent them from running to other outlets offering higher salaries, Wong said some of his members had resorted to giving extra allowances to their pay package.

To add to their workers’ woe, Wong said prices of food had risen between 10% and 15%.

He told The Malaysian Insight that suppliers have warned further increases could be expected in June.

Wong said for the moment his members are not raising their menu prices just yet.

“We dare not be hasty as it might scare away the customers and set us back to where we were during the pandemic.” – May 14, 2022.



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