50% Decline In Operating Profit Within Local Restaurant Sector - Stakeholder

5/20/2024 2:39:02 PM

(MENAFN- Jordan Times) AMMAN-The first quarter of 2024 has seen a 50 per cent decline in operating profit within the local restaurant sector, according to a stakeholder.

Speaking with The Jordan Times, Omar Awad, president of the Jordan Association for Restaurants and Sweet Shops Owners said that the local restaurant sector suffers from low demand and high levels of stagnation.

Awad further pointed out the structural liquidity issues plaguing restaurant operators and owners, attributing them to a prolonged period of weak savings and profits.

He said,“A large number of consumers are unable to afford dining out or ordering food due to other financial priorities and obligations.”

Awad also called for a delay in bank instalments, noting that a "significant" number of operators are currently facing financial difficulties. He also highlighted other challenges that sector workers and operators are encountering, such as high operational costs.

Mahmoud Mheisen, a managing director at a restaurant based in Amman, attributed the slower business in the restaurant sector and other industries to the lack of tourists following the outbreak of the Gaza war.

According to Awad, the restaurant industry comprises approximately 20,000 establishments and provides employment to about 400,000 individuals.

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