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Restaurants see 40% decline in revenues

Fahad Al-Arbash

The head of the Kuwaiti Federation of Restaurants, Cafes and Catering Services Fahd Al-Arbash said the turnout and sales of restaurants fell by up to 40%, especially restaurants operating on ‘dine-in’ system, after the implementation of the Cabinet decision to reduce workforce and capacity of restaurants to entertain diners in line with health protocols to contain the virus.

Al-Arbash told Al-Anba that the restaurants which mostly depend on ‘home delivery’ service were not affected unlike the ‘dine-in’ restaurants, which in fact increased the sales of home delivery service restaurants.

Al-Arbash added the prices of raw materials purchased by restaurants increased between 20 and 100%, as oil prices increased by up to 40% compared to its price before the Corona pandemic, and butter prices saw 100 percent rise during the same period, which led to a reduction of profit margin by restaurants to up to 30% minimum, indicating that restaurants cannot raise the prices on the menu without the approval of the Ministry of Commerce and Industry.

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