BEIRUT, Apr 15 (NNN-NNA) – The Lebanese restaurant sector, best known for its delicious food and generosity, is on the verge of meltdown, under the impact of the COVID-19 pandemic and lasting economic crisis.
An estimated 4,300 restaurants and cafes out of a total of 8,500, closed between Oct 17, 2019, the beginning of the current uprising in Lebanon, and Dec, 2020, according to Tony al-Rami, president of the Syndicate of Owners of Restaurants, Cafes, Nightclubs and Pastries.
The uprising, along with the following economic crisis, COVID-19 and Beirut port’s blasts, dealt a deadly blow to restaurants all over Lebanon.
Al-Rami noted that, 2,069 restaurants were partially or completely destroyed by the blasts, that ripped through the Port of Beirut on Aug 4, 2020, killing at least 200 people, injuring around 6,000 others and devastating a huge area of the Lebanese capital.
Meanwhile, lockdowns imposed by the authorities to curb the COVID-19, resulted in the bankruptcy of hundreds of restaurant owners, who continued to cover expenses without generating any revenues.
Lebanon has been going through its worst economic and financial crisis, amid a shortage of U.S. dollars and the collapse of the local currency.
In addition, banks have imposed unofficial capital control on people’s access to their U.S. dollar deposits, while restricting withdrawals from accounts in Lebanese pounds.
“All of these factors kept the majority of the population from visiting restaurants, as it has become a luxury that only five percent of Lebanese can afford,” al-Rami explained.
Restaurant managers complained about the slump, urging authorities to restore political and economic stability to support their survival.
“We’ve lost about 70 percent of our customers. Today, most of our visitors are either Lebanese expatriates or foreigners, who work in international companies in Lebanon,” said Ihab Ayoub, manager at Bayrock Cafe, one of the country’s most popular cafes.
Ayoub explained that local customers can no longer afford a meal in restaurants, as their salaries have lost more than 80 percent in value, after the collapse of the local currency.
“Our weekly clients are now visiting monthly,” Michel Abi Mansour, outlet manager at Cozmo restaurant in Achrafieh, one of the oldest districts of Beirut, said.
The young manager noted that the purchase of ingredients in U.S. dollar prompted restaurant owners to hike prices.
“Our prices rose by at least 30 percent, so only a few people can afford us now,” he said.
Restaurant managers also reported a mass layoff of employees, in the hope of sustaining their operations.
Al-Rami said, an estimated 110,000 out of the total 160,000 restaurant employees were laid off, while the remaining 50,000 work part-time.
He called for political stability in Lebanon, noting, this is very essential to hold back the growing trend of restaurants’ owners leaving the country, to the Gulf and Egypt.– NNN-NNA
