Budget-friendly restaurants see million-dollar losses from pandemic — sector representative

AMMAN — The Kingdom’s budget-friendly and non-tourist restaurant sector performance is low, due to the sharp reduction in spending and increasing operational expenses, according to the Jordanian Union of Restaurants and Confectionery Proprietors (JURCP).  

On Thursday, Omar Awwad, JURCP president, told The Jordan Times over the phone that the “budget-friendly and non-tourist restaurants sector has witnessed million-dollar economic losses, and significant numbers of individuals working in the sector have lost their jobs”.

He added that the budget-friendly restaurant sector is facing a difficult financial situation. “Sales volumes are down, operational costs keep going up and more and more budget-friendly restaurants are expected to shut down,” Awwad said.

Until now, 2,000 restaurants have closed their doors in Jordan and the number is expected to increase, he noted.

Anas Rateb, an accountant at a budget-friendly restaurant in Amman, told The Jordan Times that “restaurant sales have sharply declined early last month”, hoping that the restaurant’s overall situation would at least return to pre-coronavirus levels in the near future.

Budget-friendly restaurants took a huge hit, said Ghaith Yousef, who is an employee at a budget-friendly restaurant. Yousef added that “until now all signs point to greater challenges, therefore, we need new decisions that will support our sector”.

Awwad renewed the association’s call for increasing food prices in budget-friendly and non-tourist restaurants to offset the rising operational costs and keep the restaurants viable.

Budget-friendly restaurants in the Kingdom are allowed exemptions from the 16-per cent sales tax and in return they are required to sell their products at low prices, a move meant to alleviate burdens on low-income households.