Online sales, takeaways too scanty

Restaurants owners have been pounded with yet another blow of the pandemic as the government barred dine-in services during the seven-day restrictions on movement starting from yesterday to contain the virus amid Covid-19 cases hitting record highs.

The restaurants were among the first to experience a damaging effect as their sales were stated to have slid down from the middle of March, when the new wave of coronavirus infections arose.

"From the middle of February to the first week of March, the turnout of customers started to rebound. But, the new Covid-19 cases and restriction will be demolishing our business," told Ashfaq Rahman Asif, managing director of Tarka restaurant in Banani.

During the period, the sales of the restaurant reached some 70 per cent of pre-pandemic levels.

Since the Covid-19 outbreak began in March last year, the restaurant and food service providing sector has been among the worst hit in the country as customers are avoiding food prepared outside their homes in order to prevent infections.

When economic activities started to accelerate from June, only a few restaurants reopened their doors.

Since August though, the majority of restaurants have become operational but the sector has only regained about 40 to 45 per cent of its business compared to the pre-pandemic era, according to restaurant owners.

"In December last year and January this year we have regained 60 per cent of business as people started to flock to restaurants," said Asif.

As the takeaway and online delivery are still allowed, the restaurant owners are slightly optimistic about the increase of home deliveries.

"Yes, there is no wonder home deliveries will increase under this circumstance. Home delivery accounts for 10 per cent of our overall sales and it may be double now. Yet, 80 per cent of my business would be lost," said Asif, who also operates a few other restaurants with partners.

Food delivery platforms take 15-30 per cent of the food price from the restaurants as commission for their service, according to insiders.

"After paying the charges amid the decreased sales, only the salary of the staff can be paid from it. But all other expenses—utility bill and house rent— will have to be paid from our pocket," he added.

Shukanta Saikat, CEO of Green Lounge in the capital's Banglamotor, said many parties were cancelled since the middle of March due to the rise of Covid cases.

"Every sign in the business was good as people were enjoying outside food and party. But the new cases spoiled it," he added.

According to industry people, only 10 per cent of restaurants in the country are connected with the network of the food delivery aggregators.

"I have three restaurants and almost all of my business comes from dine-in service," said Ruman Ahmed, chairman of Hideout Lounge in Chattogram.

Besides Hideout Lounge, business in Ahmed's Wind of Change and Gravy Dine nosedived since March 10.

Since the pandemic, the losses he incurred from the three restaurants would be over Tk 60 lakh.

"If we can do 50 per cent of the business we can reach to break even," said Ahmed.

He said that there is no light of hope for the service sector unless the pandemic comes to an end as the sector is highly attached with people.

"I don't know when the business will bounce back."

The primary onslaught of the crisis will be felt by restaurant workers in Dhaka and across the country as they will be laid off or sent on leave without pay.

The number of food service establishments is estimated to be about 60,000, including hotels, restaurants and sweetmeat makers, said Rezaul Karim Sarker Robin, general secretary of the Bangladesh Restaurant Owner's Association.

According to Akhtaruzzman Khan, president of Bangladesh Hotel, Restaurant Bakery Sromik Union, there were 30 lakh people working in such establishments and 32 per cent of them were unemployed as of March.

"When the government provided cash assistance to 50 lakh poor families hit by the coronavirus pandemic last year, we had submitted a list but none of such workers received the money," claimed Khan.

Khan said they, under the banner of the Bangladesh Hotel, Restaurant, Sweetmeat Sramik Federation, on Sunday submitted a memorandum at the labour and employment ministry, demanding regular wages for workers during lockdowns.

They also sought a stop to lay-offs and demanded, among others, medical treatment facilities for workers infected by coronavirus.

"We have already stopped providing dine-in service because of the government restrictions," Apu Rahman, owner of Altitude restaurant in Dhanmondi's KB Square, told The Daily Star yesterday.

The daily talked to some waitstaff of different restaurants and they said most of the workers were still in Dhaka as the establishment owners were unsure whether the lockdown would continue.

"Last year, I didn't get my salary for six months. If lockdown continues or the coronavirus situation deepens, I will be sent on leave without pay once again," told a waiter of a restaurant in Dhanmondi.