Restaurants in Kuwait face ‘loss’ of revenue – ARAB TIMES

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KUWAIT CITY, August 21: Kuwait Federation of Restaurants, Cafes and Foodservices President Fahd Al-Arbash said the sector’s revenue fell 40% from its profits in June, when he suffered millions of losses, reports the daily Al-Anba. In a statement to the daily, Al-Arbash revealed that the sector is facing some challenges; the most important of which is rising prices of raw materials used in operational processes like oil, butter, chicken, rice, cheese, chocolate and others.

He added that there had been a 100% increase in the prices of some items, prompting many restaurateurs to source primary products on credit. He warned that the lack of control over prices will further increase restaurant losses.

He added that the increase in operating costs was 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% of restaurant expenses; thus exacerbating the suffering of restaurateurs. He cited the summer season as one of the factors leading to declining restaurant revenue; many of which have suffered huge losses due to low customer footfall during the summer, as this coincides with the travel season – when large numbers of citizens and expats are outside the country.

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