F&B growing steadily but business owners cautious

A survey conducted by the Statistics and Census Service (DSEC) to analyze the business performance of restaurants and other food and beverages (F&B) establishments reveals that 68 percent of the businesses interviewed expected a year-on-year rise in receipts or a stable business performance in October 2017. Such growth was accounted for by the 6 percent growth from the previous month (September).

Western cuisine restaurants registered the best results, reporting a year- on-year growth of 9 percent, while Japanese and Korean cuisine establishments reported a drop of 13 percent.

According to the report, the establishment owners interviewed in the survey expressed caution about their business prospects, hoping to register growth in November of about 4 percent month-to-month compared to October.
The same report highlights that about one-third of the sector is expecting a drop of up to 4 percent year-on-year.

The inquiry targeted a sample of 167 restaurants and similar establishments selected based on their value of receipts. Together they account for 53 percent of the industry’s receipts.

In the same survey, DSEC interviewed 135 retailers – accounting for 70 percent of the industry’s receipts – who reported a stable growth in sales through November.

Of these 135, a 77 percent majority predicted a year-on-year sales increase or steady business performance; results which reflect predictions in October.
Among the different kinds of retailers, retailers in the motor vehicle sector reported an expectation that their sales would increase or remain stable in November. Supermarkets and leather goods retailers are also expecting their sales to grow year-on-year in November, by 22 and 20 percent respectively.

The cosmetics and sanitary articles retailers, and watches, clocks and jewelry retailers expect their businesses to rise more modestly, by around 11 percent. RM