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High operational costs leave restaurants scrambling for survival

Compounding the problem, reduced consumer purchasing power has driven restaurant sales down by up to 30%, making it increasingly difficult for many establishments to stay solvent

Update : 04 Oct 2026, 04:45 PM

Rising prices of key food ingredients and essential utilities—including electricity, gas, and LPG—alongside surging rents, wages, and transport fees, are pushing restaurant owners across the country to the brink.

Compounding the problem, reduced consumer purchasing power has driven restaurant sales down by up to 30%, making it increasingly difficult for many establishments to stay solvent.

These concerns were detailed by leaders of the Bangladesh Restaurant Owners Association (BROA) during a press conference at a Dhaka hotel on Saturday.

To address the brewing crisis, the association rolled out a nine-point charter of demands. Key proposals include launching a single-window "one-stop" licensing and compliance system, halting regulatory harassment and arbitrary penalties during official drives, scrapping the 10% supplementary duty and 2% source tax levied on the industry, ensuring stable energy and LPG supplies at reasonable prices, and formulating a dedicated industrial policy tailored to the restaurant sector.

BROA president Shah Sultan and executive board members were present at the event, where secretary general Imran Hassan delivered the written address.

Hassan explained that operators cannot simply pass rising input costs onto customers, as price hikes would further depress foot traffic.

"Across the board, restaurant sales have plummeted by up to 30%," he noted.

He also pointed out that owners currently must navigate 10 to 12 separate government approvals—a cumbersome, costly process.

Consolidating these under a unified one-stop system would cut bureaucratic friction, lower expenses, and improve food-safety compliance monitoring.

In addition, BROA urged district authorities to stop interfering in restaurant menu pricing, arguing that price points must naturally reflect raw material, utility, and labor overheads.

On taxes, the association called for an end to aggressive collection tactics, the full repeal of the 10% supplementary duty and 2% source tax, and the inclusion of informal street-food vendors under the VAT net to create a level playing field.

During the Q&A session, Hassan revealed that numerous restaurants have already been forced to shut down.

He highlighted systemic issues troubling the industry, citing administrative overreach, demands for bribes, and forced extortion payments to local political factions.

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