BOOKINGS for the annual year-end dinners by companies for their staff are low this year, restaurant owners said.

They attributed this to the higher cost of living, the poor state of the economy and companies still recovering from the Covid-19 interruptions.

They said bookings have been low as firms continue to recover their businesses.

How Yu Chefs Association of Kuching founder Goh Ah Seng said the impact of the pandemic on businesses is “so great” that they have just entered the recovery phase this year.

He said most companies are trying to save costs by doing away with the year-end dinners for their staff.

“At the end of the year, bonuses and red envelopes (ang pow) are usually distributed to employees, and companies have decided to do away with dinners,” Goh told The Malaysian Insight.

He said restaurants are only looking at 20% of bookings compared to pre-Covid days.

“It is rare to see companies booking banquets these days. Usually, banquets will have more than 10 tables but nowadays only two to three tables are taken. It is done on a small scale,” he said.

Others said companies, especially Chinese businesses, are also saving up to just reward their staff during the Chinese New Year next month.

The Malaysia Selangor & Federal Territory Ku Su Shin Choong Hung Restaurant Association president Lum Tuck Loy said since Chinese New Year is celebrated next month, companies are not spending on gifts, wines and year-end dinners.

“At present, restaurants in Selangor have only received a few bookings. The reservation response has not been as enthusiastic as before, but we think some companies tend to reserve tables at the last minute,” said Lum.

Chinese New Year falls on January 22, 2023.

A more expensive banquet

Meanwhile, Penang’s Koo Soo Choon Tong Restaurant and Teahouse Association chairman Vinah Yee is hopeful that bookings for year-end dinners will pick up soon.

“This year, businesses are finally open, and there are no longer any standard operating procedures, so everyone can gather together to eat after work,” she said.

“So I believe bookings for the traditional year-end dinners by companies will be back this year, and hopefully, the restaurant industry will be able to recover faster.”

She said the prices of banquets will definitely be higher compared with previous years, largely due to an increase in the cost of food items.

Yee said the prices of dry foodstuffs imported from China, such as sea cucumbers, shark fins, fish maws and mushrooms, have gone up.

“Others include fish, shrimp, vegetables, imported garlic, onions and dried peppers. Even eggs are facing shortages and price increases,” she said.

“Therefore, the prices of banquets in major restaurants will be increased by 10-15%.”

However, she said restaurateurs are not ready to raise the prices too much as they do not want to keep the crowd away.

How Yu Chefs Association’s Goh said restaurants are forced to adjust the prices of set menus due to cost hikes – to about 10% higher than in previous years.

“The cost of duck meat imported from the peninsula was originally between RM20 and RM30 per piece but now it has increased to more than RM60,” he said.

Goh said operators in Sabah and Sarawak also have to incur transport costs, making ingredients 6-8% more expensive than those in Peninsular Malaysia.

He said the federation plans to hold a meeting to discuss the price increase after the Chinese New Year. 

Lum also said price increases will result in banquets in the Klang Valley to be adjusted upwards by an average of 8-10%.

“The prices of all ingredients have risen and the labour cost is also increasing, so everyone is forced to adjust accordingly, otherwise it will be difficult to maintain the business,” he said.

“I believe the customers will understand. After all, a bowl of ordinary noodles now costs RM11.” – December 12, 2022.