Unrest inflicts heavy losses on food businesses in Bogura

Highlights:

• Overall sales declined 70-85% for hotels, restaurants 
• Many restaurants count losses of Tk7-10 lakh per month.
• An estimated loss of Tk10 crore in one month.
• Daily sales decline of Tk3 lakh at a major food cour

Business activity in Bogura has significantly declined in the wake of the quota reform movement and subsequent unrest, with restaurants and hotels reporting substantial losses.

Many hotels and restaurants are now struggling to cover employee wages and other operational costs.

Tahmina Parvin, co-director of Rochas Restaurant on Sherpur Road, Bogura, said, "Business has been sluggish, and sales have almost come to a standstill. We have lost nearly Tk10 lakh in one month.

"Even though people are not going out to eat as much, our establishment has to remain open every day. Operational costs are piling up. If the situation does not improve, the situation will deteriorate further." 

Many establishments across Bogura, a major trade centre in northern Bangladesh, are experiencing similar challenges.

Business owners report a decline in sales by at least 70% over the past month, leading to estimated losses of around Tk10 crore across approximately 100 hotels and restaurants in the town.

Abdul Bashed, owner of Cafe Bar-B-Q, which operates in Yakubia Mor and Kali Temple areas, shared his concerns, noting that his two restaurants have incurred losses amounting to Tk17 lakh in the last month.

"There are 50 employees between both my restaurants. If this continues, we might default on our loans with the banks," Bashed said.

He attributed the decline to a deteriorating law and order situation, which has deterred customers from dining out.

"My customers are from Bogura and nearby districts. Many of them would finish work here and dine before heading home. But now, people are afraid to go out, and the police are not as active as before," he said.

GM Saklayen Bitul, co-director of Max Motel, said that while there were some sales at the end of the previous month, they have since dropped to just 5% of normal levels.

"Political instability has kept new travellers away from Bogura, and the pace of work in offices and courts is not what it used to be. If sales were Tk100 daily before, they have now dropped to Tk5. This is not a good sign for the country's economy," he added.

Female entrepreneurs running restaurants in Runner Plaza, a shopping mall in Bogura, have also been hit hard. The once bustling food court of the shopping mall now struggles with minimal foot traffic, making it difficult to cover costs.

Bipasha Khatun, owner of Chill Cafe in Runner Plaza, said, "I pay Tk33,000 in rent each month for three shops here. Despite the lack of customers, I still have to cover electricity bills, service charges, rent, and employee salaries."

She expressed concern over the future, noting that many have resorted to loans to keep their businesses afloat.

"If people do not return to the market, repaying these loans will become impossible," she added.

Before the recent unrest, the food court businesses in Runner Plaza would collectively sell around Tk3.5 lakh worth of food daily. Now, the entire market struggles to make sales worth Tk50,000 to Tk60,000 per day, shop owners report.

Sabina Sultana, owner of Sumi's Kitchen, said, "People's income has decreased. They used to come here for pleasure, but now they are more concerned about financial security. There is a fear for the country's future and stability."

She also noted that rising prices have further strained the business, as many customers are now more concerned with security than leisure.

Bogura Hotel Motel Owners Association's General Secretary Nahiduzzaman Nishad confirmed that the business community, which had only recently recovered from the impact of the Covid-19 pandemic, is now facing renewed difficulties.

"Entrepreneurs and businessmen are facing losses of crores of taka every month. The government needs to arrange loans to keep them afloat in this situation," he said.

Regarding the downturn trade, AKM Mahfuzur Rahman, deputy general manager of the Bangladesh Small and Cottage Industries Corporation in Bogura, said that the government offers various low-interest loans if needed.

"If anyone applies, we will arrange a loan for them following government policies," Mahfuzur said.