Dhaka: The Bangladesh Restaurant Owners’ Association (BROA) has issued a stark warning that the nation’s restaurant industry is grappling with severe challenges that threaten its very survival. Rising energy costs, rampant inflation, and regulatory issues are at the forefront of this crisis, according to the association.
According to United News of Bangladesh, the BROA leaders voiced their concerns during a press conference at the Dhaka Reporters Unity. They called for prompt and coordinated government action to safeguard an industry that employs approximately 3 million workers and impacts the livelihoods of millions more. The most pressing problem identified by the association is the acute shortage of gas. Since December, restaurants across the country have been facing a severe lack of LPG (Liquefied Petroleum Gas), while many previous pipeline connections remain disconnected. Imran Hasan, Secretary General of BROA, noted that owners are compelled to depend on costly LPG cylinders controlled by private syndicates, significantly escalating operating expenses amidst an already challenging economic environment.
Additionally, the association highlighted the increasing issue of extortion, with claims that politically backed groups are exploiting trade union identities to intimidate and extort small and medium-sized restaurant owners. The industry is further burdened by oversight from multiple ministries and agencies, leading to frequent inspections, bureaucratic delays, and continuous harassment by various regulatory bodies. To address these concerns, BROA has proposed the establishment of a “One-Stop Service” under a single authority to streamline licensing, VAT registration, and food safety compliance.
With the surge in the cost of essential commodities, restaurant owners are unable to raise food prices proportionately as consumers find it unaffordable. This price squeeze has resulted in the closure of numerous small establishments. The association also pointed to the rise of unlicensed street food vendors as a source of unfair competition. These vendors often bypass hygiene standards, VAT, and taxes, creating an uneven playing field for registered businesses that must adhere to strict regulations.
Key Demands
– Resolve the Energy Crisis: Effective management of LPG distribution and measures against price-fixing syndicates.
– One-Stop Service: Centralizing all restaurant-related regulatory tasks under one office.
– Inflation Control: Implementing realistic government plans to stabilize the prices of essential commodities.
– Extortion: Immediate protection from groups using trade union labels for extortion.
The BROA keynote emphasized the need for policy support, highlighting that the restaurant sector, despite being a recognized industry, receives minimal policy backing compared to large corporations.