Restaurants see sales up 10%-20%


  • Business
  • Thursday, 22 May 2003

RESTAURANT operators expect sales to jump between 10% and 20% for the six-month period to December. 

The sales growth will be spurred mainly by the abolition of service tax for restaurants and the return of consumer confidence. 

Six Happiness Group of Restaurants executive chairman Tan Tong Heng said he expects all the seven restaurants within the group to record a combined sales of RM2mil per month, up from its earlier projection of RM1.6mil. 

“Generally, the months of June, July and August mark a slow period. 

“However, with the announcement (of the economic package), I foresee more walk-ins and function businesses,” he added. 

According to Tan, although the group’s restaurant business has not been directly hit by the Severe Acute Respiratory Syndrome, walk-ins has dropped by 50%. 

Patronage by Chinese tourists has also been severely hit, he said. 

He added that certain shopping mall operators were already giving as much as 20% rebate to their tenants. 

Overseas Group of Restaurants' general manager Yap Teck Beng said the economic measures announced by the government were aimed at increasing consumer purchasing power., reducing costs of operations for businesses and to bring back consumer confidence. 

“The 5% (service tax) waiver will generally project low-priced food and it will in some ways, increase our business,” he added. 

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