Kuwaiti Restaurants Face Revenue Losses

According to Al-Anba daily, Kuwait Federation of Restaurants, Cafès and Catering Services Chairperson Fahd Al-Arbash, the sector's revenues have dropped by 40 percent compared to June, when it incurred millions of losses. In a statement to the daily, Al-Arbash revealed that the sector is facing certain challenges; foremost of which is the rising prices of raw materials used in operational processes like oil, butter, chicken, rice, cheese, chocolate and others.

The prices of some items have increased by 100 percent, forcing many restaurant owners to purchase primary products on credit. He warned that lack of control over the prices will further increase the losses of restaurants.

The increase in operating costs extends not only to raw materials, but also to packaging and processing items. He pointed out that plastic and paper used for packaging purposes constitute 30 percent of the expenses of restaurants; thereby, exacerbating the suffering of restaurant owners. As a result of the low turnout of customers during the summer, restaurants suffered huge losses due to the decline in revenues; one of the factors cited by him was the summer season, which coincides with the travel season - when many citizens and expatriates are on vacation.

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