The recent protests and blockades in Dhaka have severely impacted restaurants and fast-food outlets throughout the city. These establishments, which serve as key gathering spots for school, college, and university students, as well as families and corporate employees, were forced to remain closed for three to six days due to the disturbances and curfews.
Despite the relaxation of the curfew, widespread fear and insecurity have kept customers away, leading to significant losses for these businesses due to shorter operating hours. Additionally, slow internet connections have disrupted online order delivery services, further impacting revenue.
During visits to Banani, Kachukhet, Mirpur, and Karwan Bazar, this correspondent observed that most restaurants were empty, with staff idling due to the lack of customers. This instability has worsened the already difficult situation, with the country grappling with economic headwinds, inflation, and rising commodity prices.
The restaurant sector has been facing challenges for almost three weeks. Consequently, businesses of restaurants, coffee shops, party centres, and renowned fast-food brands have plummeted.
Failing to meet target
Tasty Treat Karwan Bazar outlet executive Azmul Huda told The Business Post, "We have over 400 outlets across the country. Most of our outlets are failing to meet their sales targets. Last month, we achieved only 50-60 per cent of our target, but this month, it seems we will not reach even that."
“We have been experiencing losses for the past 10-11 days. If this situation continues, it will become impossible for us to make a living. We urgently need this instability to be resolved. The government should address the students' demands sympathetically," he added.
Educational institutions have been closed due to the turmoil, and fear has kept people indoors, creating another barrier for businesses.
Md Abdullah Al Mamun, operations manager of 3food, a local fast-food chain, said, “With schools, colleges, and universities closed because of the unrest, we have no customers."
“We mainly serve budget-friendly items, so our customers are school, college, and university students. Our outlets are generally full, but due to the unrest, our sales have dropped by 80 per cent,” he said.
“Our turnover has gone negative. We do not know how long it will take to recover from this loss,” he added.
Md Moslim Uddin, manager of Star Kabab and Restaurant’s Banani branch, told The Business Post that their dine-in area used to be bustling with customers; however, there have been no customers or online orders for the last three weeks due to the chaotic situaion in the country.
Situation may prolong
Bangladesh Restaurant Owners Association (BROA) Organising Secretary Taufiqul Islam said, “Business is almost at a standstill, and we are facing huge losses. Due to security concerns, people are not venturing out of their homes, leaving restaurants nearly empty.
“Our turnover has plummeted, severely reducing our profit margins. Some establishments cannot even open, and those that do have no customers. Sales have dropped to 25-30 per cent. Additionally, due to slow internet issues, the online sales we used to rely on have also drastically declined.”
Pointing out that businesses were already facing challenging times with inflation, rising commodity and gas prices, along with the fire incident at Baily Road’s Green Cozy Cottage shopping mall, he noted that people have almost stopped coming to restaurants.
“We cannot secure loans from the bank. Therefore, we have requested loans with low interest and easy instalments so that those who do not have capital can at least survive. Since most restaurant businesses are small, we have requested SME loans. We have also requested subsidies, particularly tax exemptions,” he said.
Taufiqul, also the owner of Labangu Restaurant in Dhanmondi, added that their overhead costs have increased, including electricity bills, staff salaries, and other expenses, causing fear of losing their capital.
“We believe the current situation will be prolonged. Economic instability has significantly reduced people's buying capacity, and this is further exacerbated by political turmoil. Additionally, remittances are also on the decline,” he said.
