Eatery sales drop as political unrest bites

Hotel and restaurant industry hit hard by political unrest:

• Owners' association estimates sales are down by 60-70%
• Restaurants forced to operate at half capacity with unsold inventory
• Owners and employees see survival as a challenge
• They are forced to either rely on their savings or seek loans to make ends meet
• Employees are being laid off and many are looking for alternative jobs

Political unrest that leads to tough programmes like hartals and blockades has dealt a blow to the country's hotel and restaurant industry, with businesses reporting a sharp drop in sales.

The hotel and restaurant industry is a major employment sector in Bangladesh, providing jobs to more than 20 lakh people.

The Bangladesh Restaurant Owners Association estimates that sales have fallen by an average of 60-70% since the escalation of the political unrest at the end of October.

"People are staying indoors and avoiding going out," Imran Hasan, the association's secretary general, told The Business Standard. "Long-haul buses are also running less, which is hurting our business."

Talking to about 20 businessmen in the Moghbazar, Farmgate, Mirpur and New Market areas of the capital revealed that their sales have declined by 50%-70%.

Tajul Islam, manager of Mirpur Shahi Khana Basmati Restaurant, said, "When long-haul buses run, people come and eat. People are not coming now. Those who walk on the road also want to return home quickly. They do not want to take the risk of sitting and talking in the restaurants." 

At noon, three people were seen eating at a restaurant. Other tables were empty. Some of the employees were sitting idle because there was no work to be done.

Saifuddin Sumon, manager of Al Barak Birani in the Mirpur 10 area, said, "We are now cooking at our half capacity. But that too remains unsold. Now survival has become a challenge."

Habibur Rahman, owner of Hotel International at New Market, said, "Our main customers are shoppers rather than locals. But these people are not coming to shop due to insecurity among people because of the political unrest. Our sales are down by 70%." 

He said in an attempt to recoup losses, New Market has extended its operating hours to include Tuesdays, its usual weekly holiday.

Moghbazar's Bhorta Bhat Restaurant manager Mohammad Sajal said, "Our sales have gone down by 50%. During normal hours of political stability, there remain a lot of people on the streets. But now there are only a few people on the roads."

He said the ongoing political unrest has forced restaurant owners and employees to either rely on their savings or seek loans to make ends meet.

According to the "Hotel and Restaurant Survey 2021" conducted by the Bangladesh Bureau of Statistics (BBS), as of the end of 2021, the country's total estimated hotel and restaurant establishments was 4.36 lakh.

The total number of persons engaged during the survey in 2021 was 20.72 lakh. The number of persons engaged in administration or managerial or clerical or sales and other paid workers was 12.81 lakh and the remaining 7.9 lakh were either owners or partners or contributing family members or non-salaried people.

The estimated employment cost in hotels and restaurants in 2021 was Tk31,429 crore and gross output was Tk1.18 lakh crore. 

Imran Hasan expressed deep concern at the business loss due to political programmes at a time when the soaring prices have already increased their costs and reduced profits. 

"Who will compensate us for these losses?" he asked. 

He noted that the Covid-19 pandemic followed by the Ukraine-Russia war dealt a blow to the restaurant businesses with rising food prices. "But the situation worsens due to the ongoing political unrest."

Imran Hasan said some restaurants are shutting down their operations, pushing their employees to opt for pulling rickshaws or working as day labourers.