Cambodia: Customer and staffing levels hit by virus

• Apr 22, 2020

Owners of small businesses across Phnom Penh are being hit badly by the COVID-19 virus.

They are being forced to cut staff and offer delivery services as customer numbers dwindle.

Fares Islam has run successful Indian restaurant Namaste India in Street 15 for two years but because of the viral epidemic he has switched to takeaway orders only because of a dramatic decline in eat-in customers.

“Instead of packed seats, it has been reduced to a ghost town with people following safety measures to stay at home to stop getting infected. Meanwhile, unpaid bills keep piling up,” he said.

“We have suffered a more than a 50 percent dip in the business but we are always trying out creative ways to keep the existing customers happy. We have laid off 25 percent of our employees pay to keep the business open. We will survive but there won’t be any profit.”

Namaste India is not alone. Many small businesses are struggling, with most either looking for creative ways to keep revenues flowing or finding other sources of income.

“My mini-mart was operating normally before and after Khmer New Year. However, now, most of my customers who used to be of Chinese nationality have gone. I don’t get many customers like I used to but the business is still thriving on selling sanitising products with people being scared and extra cautious of this virus,” said Meng Chou, the concession owner of Yes Mart in Street 63.

Meng added that if the viral epidemic continues for long, she is concerned about the financial effects which will be wreaked on her business.

“I hope people are taking care of their health and they should stock up on necessary products during these uncertain times.” Meng said.

Hong Vannak, a business researcher at the Royal Academic of Cambodia, said: “This has been the most devastating time for small businesses that I’ve seen.”

He further added that small businesses play an important role in strengthening the economy of the country. Small and medium enterprises (SMEs) create many jobs and revenues and employ some 75 percent of Cambodian residents.

“The critical thing is to make sure that you can reduce expenses, reduce cash outflows, work with all your suppliers and creditors and see if you can maintain a solvent business because if we don’t have our small businesses, our economy will be much harder to restart,” Hong noted.

“The good news is that at some point, business will resume,” Hong said. “It’s just unknown when that will happen. During this time, remember to treat your customers well so that they stick around once things get better.

However, some businesses report better news. “I have noticed that customers visit regularly even before and after the outbreak of COVID-19. We were open during the Khmer New Year, which wasn’t the case before,” said a member of staff at Doi Chang Cafe who declined to be named.

Source: https://www.khmertimeskh.com/50715482/customer-and-staffing-levels-hit-by-virus/