The Malaysian Insight

NIGHTCLUBS, pubs and similar entertainment centres have had to change their business models after being closed the last five months.

With zero revenue, they are still not allowed to reopen even under the recovery movement-control order (RMCO).

Business owners said many are facing a change-or-die situation and some have opted to transform into restaurants or cafes to keep their employees.

Sabah Labuan Motion Picture Traders and Entertainment Association president Peter Chow said some 50% to 60% of the association’s 80-plus members have ditched their bar, karaoke and nightclub business models.

“If they had been allowed to reopen earlier, some might have been able to survive, but it’s already August. That’s five months without income, it’s just impossible,” Chow told The Malaysian Insight.

He said many of Sabah’s more than 700 entertainment venues are now operating as bistros or cafes. Even Chow’s establishment has been operating as a cafe since July 1.

Chow said business has been moderate but at least the establishment is making some money.

“After we transformed our business model, we’ve started providing some basic food items and drinks. At least this will keep our workers employed and we all can lessen our burdens a little.”

Chow said much of his business has so far come from the support of friends and income had only recovered by about 20% compared to before the MCO, which was imposed on March 18.

In Johor Baru, De Cool Pub owner Desmond Wee said he turned his outlet into an eatery serving Western food since June.

He made the decision upon seeing that the RMCO, which started on June 10, allowed many other businesses to reopen except those like his.

“If I were to wait for approval to resume business, that would be like waiting to die. So, I took the risk and changed my business model,” he said.

Wee, who is also Johor Entertainment Outlet Operators’ Association vice-president, said his pub served bar food before so there was already a functioning kitchen and no modifications were needed. He only had to hire a cook.

“But the food and beverages sector is highly competitive and now consumers are cautious about spending, so we can’t set our prices too high.

“Business hasn’t been as good as before but at least we can pay our workers.”

Wee said he’ll keep operating as a restaurant even if the government decides to allow bars, pubs and nightclubs to resume operations come August 31, when the RMCO ends. 

It is not clear if the current regime of rules will be extended as the country sees a slight bump in the number of Covid-19 cases, mostly in the lower-double digits daily.

Johor Entertainment Outlet Operators’ Association president Tan Yam Meng said it is not difficult for bars and pubs to change into a restaurant.

The only major requirement is to set up a kitchen, if they did not already have one and to apply for the necessary permit.

Changing business models is a good short-term solution to help owners survive the uncertain period, Tan said.

“For now, both state and federal governments do not allow entertainment outlets to operate, so operators have no choice but to switch their business models.” – August 19, 2020.