CNI News
22 July 2022
Sales in restaurants fell recently and profits were dwindled due to shortages and rising prices of gas for cooking, according to restaurant owners.
Restaurant owners, who have to rely on gas for cooking, are running their businesses without any profits due to rising gas and commodity prices, the owner of Linletkyal Fried Noodles Restaurant in Bahan Township told the CNI.
“Previously, we bought cooking gas at K 33,000 or K 35,000 per cylinder. Now, gas prices have risen by K 25,000 to K 55,000 per cylinder. As gas and foodstuffs are getting expensive, we cannot get profits. I have to rent the restaurant and pay staff salaries. I earn just enough money for the rent, the salaries and food for us.,” he said.
While gas prices have increased by more than K 20,000, some shops are selling gas under the rationing system.
Although some restaurants turned to electric stoves, they faced other problems like blackouts, rising electricity bills.
If gas prices rise further, restaurant businesses will have to face shutdowns, according to the owner of Lin Let Kyal noodles restaurant.
Gas cylinders in a gas station.
“If gas prices rise to K 60,000, K 70,000 or K 80,000, restaurants will not be able to afford it. Some restaurant owners use charcoal. Otherwise, their businesses will come to halt,” he told the CNI.
Moreover, fuel prices are also rising and commodity prices increased due to transportation charges, pushing up food prices.
With rising food prices, the number of patrons at restaurants has dropped and sales dropped, Chairman U Nay Lin of Restaurant Entrepreneurs Association told the CNI.
“We have to increase the prices of dishes at a time like this because restaurant owners can no longer suffer the losses. So, dishes that were sold at K 6,000 per serving may rise to K 7,000 or K 8,000. Finally, customers bare the brunt of the rising prices but they will be disappointed when they have to pay K 8,000 for what they usually ate at K 5,000 in the past. This caused difficulties for some. As a result, the number of customers at restaurants dropped. Every restaurant has faced the same problems,” he said.
Due to rising prices of US dollar against the Kyat, companies cannot import gas from Thailand and halted imports, leading to the rise of gas prices.
Restaurant owners pointed out that it is necessary to maintain currency price stability and fall in the prices of commodities to overcome the difficulties.
