Restaurant Business at Risk, Many Establishments Shutting Down

Since the fall of the Sheikh Hasina government on August 5, 2024, violent incidents have occurred in various parts of the country, including arson attacks on multiple establishments. One such incident involved the destruction of Sontu’s Restaurant at Dhanmondi 32—an eatery that had been in business for over a decade. It never reopened. Similarly, after the political shift, many restaurants and fast food outlets across the country have closed down, although no exact statistics are available. In fact, there is no definitive data on the total number of restaurants and fast food businesses in the country. According to the Bangladesh Restaurant Owners’ Association, the restaurant business is under severe threat, with sales dropping by at least 30% since August 5.Several Facebook groups facilitate the sale of restaurant equipment. Daily, ads appear from individuals selling or renting restaurants, or offering equipment like ovens, stoves, refrigerators, tables, chairs, tandoor ovens, or even full restaurant setups. Listings come from Chandpur, Rajshahi, Mymensingh, and even Chattogram. Contacting several recent advertisers revealed that most are selling due to inability to continue operations—often due to financial stress or ownership disputes.For example, Hot Hut Food Ltd., which had operated for more than 12 years on Mirpur Road near Metro Shopping Mall, has been closed since September last year. Conversations with neighboring businesses confirmed that the restaurant rented the floor space but was evicted by a company group. The space remains abandoned. Although Hot Hut Food Ltd.’s Facebook page doesn’t announce the closure, attempts to reach them by phone failed, and a Facebook message received a response claiming the closure is temporary for renovation.What the Numbers SayThe Bangladesh Restaurant Owners’ Association does not have a comprehensive count of restaurants nationwide, but claims 60,000 members. The Bangladesh Bureau of Statistics (BBS) released hotel and restaurant data in 2021. In the fiscal year 1992–93, the country had 117,981 hotels and restaurants. This number rose to 215,103 in 2002–03, then to 275,324 in 2009–10, and reached 436,274 in 2021. That’s a growth of 160,950 new establishments over 10 years since 2010.The BBS report also noted that the hotel and restaurant sector’s contribution to GDP has increased over time. In 2009–10, gross value addition from this sector was BDT 11,000 crore; by 2019–20, it had risen significantly to BDT 38,000 crore. This shows that the hospitality sector is expanding rapidly and its economic contribution is increasing.However, according to the Restaurant Owners’ Association, the sector’s current contribution to GDP is around BDT 85,000 crore.Current Situation of the Restaurant BusinessSpeaking with several well-known restaurant owners in Dhaka revealed a slowdown in the business. Many attributed this to political instability and safety concerns. In areas like Gulshan and Banani, restaurant owners reported ownership changes due to political shifts. Even in these upscale neighborhoods, sales have dropped. Law-and-order issues at night have discouraged many customers from dining out.A manager of a restaurant on Banani’s Road 11, speaking anonymously, said, “Many of our regular customers haven’t come in months. Sales fluctuate day by day. While Thursdays and Fridays are slightly better, it’s nowhere near what it used to be.”An officer at a high-end Thai cuisine restaurant in Gulshan-2 said it used to be fully booked every day, requiring reservations in advance. That’s no longer the case, although he declined to comment further.Sajid Zaman, co-founder of renowned Kacchi restaurant chain Sultan’s Dine, told Bangla Tribune, “There’s a bit of unrest in the country at the moment. Whenever there’s a protest, sales are affected because people don’t go out. Also, the spices we use haven’t gotten any cheaper—in fact, they’ve become more expensive. This makes it difficult to earn expected profits. We can’t raise prices because we must consider our customers. Law and order is another issue. The situation hasn’t stabilized, and at night we often don’t get guests. In our branches outside Dhaka, many don’t get guests at all after dark. We’re facing several such challenges now.”He added, “Running a restaurant business has become more difficult. Although we have multiple branches across the country and receive good feedback for our offerings, not everyone can cope. Due to protests, people get stuck in traffic and avoid going out altogether. This situation must change, because this sector contributes significantly to GDP.”Imran Hasan, Secretary General of the Bangladesh Restaurant Owners’ Association, told Bangla Tribune, “Our restaurant industry is in a dire state. I’ve personally closed three of my restaurants, and several more are on the verge of closure. What’s happening now is that businesses still exist, but ownership has changed multiple times. We’re in a terrible position. Workers’ wages have been set without consulting us. We’re expected to pay for their lodging and food too, and most are daily-wage earners.”He further said, “Since the regime change, there’s been widespread unrest. Law and order hasn’t been fully restored, inflation has risen, many industries have shut down, and people’s purchasing power has declined. All of this has affected the restaurant business. Sales have fallen by at least 30%.”

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