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The Restaurant Industry Has Not Recovered From The Pandemic Shock
Despite the passing of more than two years since the onset of the Coronavirus pandemic, the head of the Kuwaiti Federation of Restaurants, Cafes, and Catering Services, Fahd Al-Arbash, said that the restaurants and cafes sector is still suffering from the effects of the epidemic.
In an exclusive statement to Al-Anba, he added that the restaurant sector's suffering in Kuwait could last for another 5 years unless the government takes action at multiple levels to support the local economy on the one hand, and open the way for tourism and employment on the other, particularly because a large segment of restaurant and cafe owners have become crippled by large financial loans due to accumulated rents during the closure perspective.
Despite the real recovery in the country, Al-Arbash emphasized that the restaurant sector's activity has not returned to its previous era, as evidenced by the fact that restaurants did not do business as usual on National Day and Liberation Day because a large segment of citizens and residents preferred to travel abroad.
Al-Arbash went on to say that a substantial percentage of eateries have become reliant on "order delivery" in their operations.
Because many people either traveled abroad or spent time in chalets, there was a notable drop in demand for orders over the holidays.
He explained that the restaurants that benefited from the citizens' turnout were those located in major commercial complexes, but that these restaurants account for only 20% of the total restaurants in Kuwait, and that the rest of the restaurants, which account for 80% of the total restaurants, saw a significant drop in revenue.
Simultaneously, Al-Arbash drew attention to the significant increase in the prices of many foodstuffs, noting that this increase had a significant impact on the profits of restaurants and cafes that stuck to their price lists, raising the question of these restaurants' ability to continue and withstand the high food prices.
Restaurant price stability and the lack of official assistance for young people in control of these restaurants have stifled their ambitions to a large extent.
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