Restaurant sector in crisis as sales fall 30pc
Bangladesh’s restaurant sector is facing mounting pressure from rising food, energy and labour costs, prompting restaurant owners to seek permission for limited beef imports to boost supply and contain prices.
The Bangladesh Restaurant Owners Association made the demand at a press conference titled “Restaurant Sector in Deep Crisis Due to Soaring Commodity Prices: Demands for Resolving the Crisis” at a hotel in Paltan on Saturday.
Association Secretary General Imran Hasan said beef is currently selling for Tk 800 to Tk 1,000 per kilogram, making it difficult for restaurants to source sufficient quantities of quality meat.
“Beef is one of the main ingredients in restaurant dishes. Rising prices have increased production costs, but raising menu prices could reduce sales,” he said.
Hasan said beef priced at Tk 800 per kilogram often contains significant amounts of bone, fat and other non-meat portions, reducing the usable meat yield and effectively increasing costs for restaurants.
The association attributed rising cattle prices partly to higher livestock-rearing costs, particularly cattle feed. Hasan said many small farmers who previously raised a few cattle were finding it increasingly difficult to continue, while alleging that middlemen or syndicates were contributing to higher feed prices.
The association proposed allowing limited beef imports under specific rules and strict government supervision to increase supply and ease price pressures. It also called for food safety, health and quality controls on imported meat.
Hasan said access to lower-cost international supplies could allow restaurants to reduce meal prices. He noted that five-star hotels and some specialised restaurants already import beef and said other restaurants could also be permitted to do so if they meet specified conditions.
The association said restaurant demand for beef remains steady throughout the year, unlike the seasonal increase during Eid-ul-Azha. It called for measures to encourage small farmers to raise cattle and promote greater competition in the market.
Restaurant owners also reported higher costs for rice, lentils, cooking oil, meat, fish, spices, vegetables and eggs, as well as gas, electricity, LPG, water, rent, transport and labour.
The association said restaurants have been unable to fully pass these additional costs on to customers for fear of losing business. It estimated that overall restaurant sales have declined by up to 30 per cent.
The association placed a nine-point set of demands, including faster implementation of a one-stop service for restaurants, an end to district administration interference over food prices, an end to alleged harassment during VAT collection, and withdrawal of the 10 per cent supplementary duty and 2 per cent tax at source.
It also called for measures to resolve LPG and fuel shortages, reduce load-shedding, prevent harassment and arbitrary fines during raids, and implement the decision to recognise restaurants as an industry.
The association further sought a dedicated industrial policy for the sector, an end to politically motivated harassment and extortion, and training and incentives for restaurant workers.
It said the proposed measures were necessary to protect employment, support the restaurant industry and improve food safety and service standards.
