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Cambodia: Insiders report Feb 20 incident’s huge toll on restaurant chains
Tep Virak, the general manager of the Express Food Group (EFG), which operates six key brands across 70 shops in Cambodia, reports that his company’s sales have dropped around 80 percent during the pandemic, with much of that hit coming after the Feb 20 community incident. That incident was triggered by the bribing of security guards at the Sokha Hotel, Phnom Penh.by four COVID-19-positive Chinese nationals to facilitate their escape from quarantine.
EFG’s six brands include the Pizza Company, Swensen’s, Dairy Queen, Krispy Kreme, Bar BQ Plaza and the Coffee Club.
“Everyone is showing concern over the COVID-19 community outbreak. They have stopped travelling or dining outside due to safety concerns,” noted Virak.
“The situation had been gradually improving from January to the first two weeks of February, with people beginning to come out and spend money at levels we had not seen since before the Nov 3 and Nov 28 community incidents. From Feb 20 onwards, though, people started worrying again despite vaccines being available,” Virak added.
He noted that since customers were afraid of going out that some of the shopping malls EFG’s brands are located in have reduced their business hours because of the lack of footfall. Virak added that over the last two weeks of February, the company’s sales were almost zero. He said individual location sales had been primarily occurring during peak periods on weekends but, during the last weekend in March, they registered barely $100 in sales per shop per day.
“Not only are we not generating income, but expenses are also increasing for us,” said Virak.
Among the company’s six brands, Virak specified Bar BQ Plaza and the Coffee Club as being particularly badly hit because they depend heavily on walk-in customers.
Virak added that the government has supported business with tax incentives and relief but if the government could reduce electricity bills, it would assist the sector greatly in its effort to survive and continue to employ people.
“Thus far, we have not yet reduced any staff despite facing difficulties. If staff choose to resign, we will not replace them, just transfer remaining employees from one shop to another. We have around 1,245 staff currently,” he added.
This month Virak anticipates a severe impact and EFG is considering the closure of some of its stores. They are looking at each shop’s operations with a decision scheduled for next week on whether to close shops or concentrate solely on operational cost-cutting.
“In our 2021 plan, we had planned to open 13 shops across the country, but we will consider delaying some openings based on the prevailing situation,” he added.
According to the company, prior to COVID-19, EFG operations drew 60 percent of its business fromwalk-in customers choosing to dine while out shopping. Earlier during the pandemic, that number fell to 20 percent. Since the Feb 20 community incident, it has dropped further to 10 percent. Virak disclosed this has resulted in a severe loss in profit.
Park Cafe’s Managing Director Heng Sengly said his shops are still following normal hours of operation despite the latest developments.
“We cannot close because we have 400 to 500 staff to feed. However, we are following with the Ministry of Health’s guidelines and other standards strictly and have put all those protocols in place to make sure customers are safe,” he added.
Park Cafe also reports that its sales are down, having dropped by 60 percent during the pandemic, especially following the Feb 20 community incident. Compared with the November incidents, the latest one is having a more severe effect on the business with so many cases being reported every day, Sengly added.
He noted that with sales down, the restaurant’s regular purchasing volumes have also declined to avoid perishable ingredients such as vegetables and meat from spoiling.
“This affects our suppliers, so all relevant stakeholders should be involved in this matter as to how best to survive and seek assistance. We do have the option of closing our inside dining and just doing delivery and takeaway,” he added.
Source: https://www.khmertimeskh.com/50825326/insiders-report-feb-20-incidents-huge-toll-on-restaurant-chains/