During Ramadan in Dhaka, people typically go out with their family and friends for iftar and sehri as restaurants stay open till 4am. This time of year is when most establishments make the bulk of their sales.
According to Ashaq Rahman Asif, managing director at Tarka, Restaurant sales during Ramadan were at an all time low across the city unfortunately this year.
“Restaurant sales during Ramadan significantly dropped this year. Almost no one showed up till the 15th day of Ramadan,” Ashfaq said.
Syed Mohammad Andalib, founder of Baburchi and Tri-state eatery noted a 40% decline in sales compared to last year.
“Sales have dropped down to 30- 40% minimum in comparison to last year,” said Andalib.
They say this drop in sales during Ramadan is due to a weakened economy, following the political instability and a lack of law enforcement resulting in a collective sense of insecurity among people.
“The people who had the means to spend a lot aren't here anymore, and the people here have become more cautious. There has definitely been a shift in the economy after the political turmoil.” Ashfaq said.
“People are afraid to step out and stay out, there’s a severe lack of law enforcement. People are always afraid of theft and burglary on the streets, even in areas such as Gulshan, which is an area that’s usually considered safe,” said Andalib.
People’s purchasing power has also taken a hit, which was evident at Iftar bazaars this year.
Andalib, who organizes one of the largest Iftar bazars in Dhanmondi, observed a visible shift in spending habits. In the past, people in upscale areas like Gulshan and Dhanmondi would purchase without worrying about the cost, but now, they ask about the price before they buy.
The economic shift has also affected family dining habits. Traditionally, families would dine out during Ramadan, with one person usually covering the bill. However, as a result of lower purchasing power, fewer families have been visiting restaurants. Instead, people are going out with colleagues and friends, sharing the cost of meals.
Ashfaq pointed out that unlike previous years, very few families have gone to restaurants this year.
“Most of them are colleagues or friends who could split the bill amongst themselves,” he said.
“The political instability may have influenced many to spend time at home rather than dining out,” said Shamim Sharif, manager at Bistro E, who also noted a 15% drop in sales during Ramadan.
While the sales have dropped, the prices for ingredients have also begun to decrease, easing some of the financial pressure.
“One good thing is that we’re not bleeding from both sides. While the sales were really low, the prices for ingredients have also started decreasing,” said Ashfaq.
Andalib explained that although ingredient prices are lower, they are still not low enough to significantly reduce costs for the average consumer.
“While the cost of ingredients has gone down, it is still not low enough to impact sales prices. If the price was Tk190 before, it’s Tk180 things are still expensive in comparison, we’re hopeful that it will keep decreasing,” he said.
In terms of restaurants and businesses, costs for bulk buying ingredients like chicken is a factor, according to Andalib.
“Restaurants specifically need 825 kilos of chicken and specific rice as well, which automatically means that there’s an increased cost,” He said.
According to Abdul Mannan, manager of Dhanshiri, rice prices have increased, increasing their overall cost.
“People keep saying prices of vegetables and spices have dropped, but there are other things such as the price of rice, which has increased up to Tk20-25,”
During Ramadan, Dhanshiri usually remains profitable. However, this year, there's a drop in sales and in turn a significant drop in profitability. During previous Ramadans, they usually made a profit of 40% and this year, their profit has dropped down to 25%.
“We haven't had much business and there’s more cost involved in comparison to sales. This is entirely a political impact,” Mannan added.
Even high end restaurants barely recovered their cost until the last 10 days of Ramadan, as most customers didn’t show up until then. Andalib explained that fresh iftar food had to be prepared daily, but with fewer customers, they only broke even right at the end of the month.
“Iftar food can only be made fresh, but there were barely any customers till the last 10 days. We made minimum profit in the last few days, till then we only recovered our cost,” He also said.
The festive mood of Ramadan was overshadowed by fear this year.
“People used to treat Ramadan like a festival, but this year, no families have stepped out much for iftar or sehri. We need political stability and proper law enforcement before things can get better,” said Bangladesh Restaurant Owners' Association Secretary General Md Imran Hasan.
While five star hotels in Dhaka have had extravagant iftar deals and discounts, Ashfaq pointed out that hotels can afford to give such large discounts and boost restaurant sales because food is a secondary service for them. While their main business is room booking. In contrast, stand alone restaurants rely on food as their main source of revenue.
“We can't compete with the sort of offers that hotels come up with; food is a by-product for hotels, but for us, it is the main product,” he added.
