The revenues of kuwaiti eateries has decreased by 40 percent compared to its earnings in June, according to new reports.
24 August 2022, 12:00 AM
30 September 2022, 12:00 AM
Kuwait Federation of Restaurants, Cafès and Catering Services Chairperson Fahd Al-Arbash said the revenues of the sector has decreased by 40 percent compared to its earnings in June when it incurred millions of losses, reports Al-Anba daily.
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 summer season as one of the factors leading to the decline in revenues of restaurants; many of which incurred huge losses due to the low turnout of customers during summer, as it coincides with the travel season – when a large number of citizens and expatriates are outside the country.
He added there has been 100 percent increase in the prices of some items, prompting many restaurant owners to procure primary products on credit. He warned that lack of control over the prices will further increase the losses of restaurants.
He added the increase in operating costs is not limited to raw materials, as it also extended 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.