The head of the Kuwaiti Federation of Restaurants, Cafes and Catering, Fahd Al-Arbash, said that there are 3 main challenges that affected the performance of the sector during the current period, indicating that restaurant sales in the current period decreased by 40% compared to their sales before last June, which incurred heave losses believed to be in millions.
He stated that the challenges facing the sector, on top of which are the prices of raw materials used in operational processes, such as oil, butter, chicken, rice, cheese, chocolate and others, are witnessing an increase of up to 100% for some of those items, which prompted many restaurant owners to purchase their primary products on credit, pointing out that the liberalization of prices will increase the losses that restaurants incurred during the last period.
In a statement to Al-Anbaa, Al-Arbash indicated that the increase in operating costs in the sector was not limited to raw materials, but also extended to packaging and processing tools, as the prices of plastic used for packaging and papers represent 30% of restaurant expenses and increases the suffering of restaurant owners during the current period.
Al-Arbash stated that the summer holiday season played a role in the decline in revenues in restaurants, and indeed many of them achieved significant losses, due to the low turnout during the summer period, which coincides with the travel of a large number of citizens and residents abroad, which reduced demand rates and revenues accordingly.
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