The Malaysian Insight

CHINESE restaurants are racking up losses of up to 80% because of the Covid-19 outbreak, resulting in several outlets mulling shutting down, said the Kuala Lumpur and Selangor Chinese Restaurants’ Association.

One of the worst affected areas is the Sunway Velocity shopping mall in Kuala Lumpur where all 38 Chinese restaurants are suffering heavy losses, it said.

Association president Gao Hao Yun told The Malaysian Insight that there are nearly 1,000 Chinese restaurants in the country, catering to about 40,000 to 50,000 mainland Chinese visitors.

“We did a survey and basically, restaurants are suffering losses of between 40% and 60%, with more serious cases of up to 80%,” he said.

One of the worst-hit areas is Sunway Velocity shopping mall, which earned the nickname “Chinese City”, Gao said.

The 38 Chinese restaurants there are experiencing losses of between 20% and 80% following the Covid-19 outbreak.

Gao said some restaurants can’t bear the sudden loss of business and will close down by the end of February.

He also attributed the closure to other factors, including high rents and fierce competition.

“Then came the virus outbreak and businesses were further affected. Those that are hit hard have to close.”

Most of the workers in Chinese restaurants in Sunway Velocity are locals and he is worried that if the situation worsens, they will be jobless.

Gao said food and beverage businesses were prepared for the “golden week” spring holidays during the Lunar New Year.

“It was unexpected that the Covid-19 outbreak happened during the golden week and businesses are scrambling to mitigate losses.”

There are also concerns among customers that mainland Chinese who have been to Wuhan, the epicentre of the outbreak, will visit these restaurants.

“I encourage restaurants to have a positive and transparent attitude at this time instead of offering discounts to stem losses.

“Many restaurants are offering discounts to regain customers but doing so will only cause others to follow and this will lead to a race to the bottom.”

Gao suggests that restaurants clearly state on their doors that their employees are locals and ask their customers if they have been to China recently.

“Businesses should also take precautionary measures, such as checking body temperatures, disinfecting the premises and providing customers with disinfectant.

“Customers will only come back if the restaurant operators can make them feel safe,” Gao added. – February 20, 2020.