United News of Bangladesh

The Bangladesh Restaurant Owners' Association (BROA) has warned that the country’s restaurant industry is facing an existential threat due to skyrocketing energy costs, persistent inflation, and regulatory harassment. During a press conference held at the Dhaka Reporters Unity on Tuesday (January 13), BROA leaders called for immediate, coordinated government intervention to protect an industry that supports approximately 30 lakh workers and millions more livelihoods. The most critical challenge cited by the association is the acute shortage of gas. Since December, restaurants nationwide have struggled with a severe lack of LPG (Liquefied Petroleum Gas), while many previous pipeline connections remain disconnected. "Owners are being forced to rely on expensive LPG cylinders controlled by private syndicates," said Imran Hasan, Secretary General of BROA. "This has drastically increased operating costs at a time when we are already struggling,” he said. The association also highlighted a growing trend of extortion. Leaders alleged that politically backed groups are misusing "trade union" identities to threaten and intimidate small and medium-sized restaurant owners for money. Read More: Top business leaders meet Tarique Rahman, discuss economy, jobs Furthermore, the industry is currently monitored by multiple ministries and agencies. BROA argued that this fragmented oversight leads to overlapping and frequent inspections, bureaucratic delays in licensing, and constant harassment by various regulatory bodies. To solve this, BROA has proposed the establishment of a "One-Stop Service" under a single authority to handle licensing, VAT registration, and food safety compliance. While the cost of essential commodities has surged, restaurant owners say they cannot raise food prices proportionately because consumers simply cannot afford it. This "price squeeze" has already led to the closure of many small establishments. The association also pointed to the rise of unlicensed street food vendors as a source of unfair competition. These vendors often bypass hygiene standards, VAT, and taxes, creating an uneven playing field for registered businesses that must comply with strict regulations. Key Demands Resolve the Energy Crisis: Effective management of LPG distribution and action against price-fixing syndicates. One-Stop Service: Centralizing all restaurant-related regulatory tasks under one office. Inflation Control: Realistic government plans to stabilize the prices of essential commodities. End Extortion: Immediate protection from groups using trade union labels for extortion. "The restaurant sector is a recognized industry, yet it receives very little policy support compared to large corporations," the BROA keynote stated.

Bangladesh Restaurant Owners Association has threatened that they will go strike unless the government reconsiders its plan to increase Value Added Tax (VAT) on hotels and restaurants. The restaurant owners issued the warning at a press conference held at a hotel in Dhaka. Imran Hasan Secretary General of the Restaurant Owners Association, expressed concern at the press conference highlighting the current high inflation rate. He said the plan would directly impact the general people. DCCI raises alarms over VAT and gas price hikes He suggested that the government could reduce administrative costs and cut unnecessary projects to address budget deficits instead of imposing such a heavy tax burden on businesses. The National Board of Revenue (NBR) has proposed raising VAT on food at hotels and restaurants. Currently, patrons at regular and air-conditioned (AC) restaurants pay a 5% VAT, which could rise to 7.5%. The VAT for non-AC hotels is proposed to be doubled from 7.5% to 15%. VAT waived on Dhaka Metro Rail tickets Hasan criticised the government for relying on VAT as a primary revenue source instead of expanding direct taxes. “Only about 525,000 businesses are VAT-registered, with roughly 350,000 paying VAT regularly. The NBR has not taken effective steps to bring the millions of unregistered businesses under the VAT net,” he said.  

Following the devastating fire incident at the Green Cozy Cottage building on Bailey Road that killed 46 people and injured several others, authorities in Dhaka have launched a crackdown on restaurants lacking proper fire safety measures. Restaurant owners, however, are critical of the approach.  The Restaurant Owners Association has labelled these operations as “harassment” and “for show”, lacking in coordination. The operations, according to the association, seem to target the restaurant industry unfairly, calling for a more integrated approach to address safety violations. Professor Dr. Adil Muhammad Khan, President of the Bangladesh Institute of Planners, criticized the sporadic nature of these operations, arguing for regular and coordinated efforts. He highlighted the injustice in arresting restaurant workers for building faults, suggesting that the responsibility lies with RAJUK (the development authority) officials and building owners before considering the tenants such as restaurant operators. Entry-level women's recruitment doubles in banking sector, but board representation still lagging Imran Hasan, General Secretary of the Restaurant Owners Association, expressed the sector's frustrations over the lack of support from any ministry despite repeated pleas. He called for a meeting with the Prime Minister, signaling their readiness to shut down operations if found culpable.  However, he questioned the logic behind blanket closures, arguing for a constructive resolution. Around 200 restaurants in Dhaka have been closed, he said, raising concerns about the crackdown. Currently, Bangladesh houses approximately 481,000 restaurants, providing employment for 30 lakh people, the general secretary of Restaurant Owners Association said. He also underlined the struggles with bureaucratic red tape and the desperation for constructive dialogue and solutions. Hasan called for the Prime Minister's intervention, reflecting the dire situation of entrepreneurs and workers within the industry, whose livelihoods are at stake. Fire safety: How safe are the restaurants in Dhaka’s upscale areas? The opposition's Chief Whip, Mujibul Haque Chunnu, has also alleged lack of coordination in the drives against risky and unauthorized buildings operating amid fire risk. “A magistrate went and destroyed a shop. Another goes and says stop. The authorities need to take a concerted, slow and steady approach in conducting fire safety drives,” he said while participating in an unscheduled discussion in the Parliament last Tuesday. RAJUK's Chairman, Anisur Rahman Mia, meanwhile has announced plans to list at-risk buildings, intending to mark them clearly and disconnect utilities in coordination with service providers, emphasizing the need for collaboration among various agencies for effective regulation. This situation sheds light on the complexities of urban safety, regulatory enforcement, and the livelihoods dependent on sectors like dining, calling for balanced, fair, and coordinated efforts to ensure public safety without unjustly jeopardizing businesses and jobs. Read more: Why Fire Safety Audit is Essential for Commercial Buildings

Restaurant owners in Sylhet have called off their indefinite strike in protest against mobile court raids, following assurances from the local administration and ruling party politicians. On Tuesday afternoon, restaurants owners across Sylhet declared to go on an indefinite strike from Wednesday in protest against the mobile court drives against "substandard" food and non-possession of a licence by some eateries. Sylhet administration officials spoke to the aggrieved restaurant owners at night. They were also contacted by the ruling Awami League leaders.  Read:Sylhet restaurants to go on indefinite strike from Wednesday The restaurant owners withdrew the strike after the administration assured them of halting the drive. Shanto Deb, president of the Sylhet Caterers' Owners Association, said, “The administration has assured the restaurant owners that they would not be harassed in anyway. Hence, we have withdrawn the strike." However, most of the restaurants in Sylhet have remained closed since Tuesday evening after the strike was called in the afternoon. During the drive on Tuesday, magistrates ordered the closure of three eateries for "serving substandard foods" and not having a licence and detained two staff members. The drive led restaurant workers to immediately take to the streets and block  Zindabazar Road in the heart of the city for about an hour, causing a long traffic jam. They demanded that the drive be halted and the detained workers be released soon. Shanto had said the drive led by a mobile court of the Rapid Action Battalion (RAB) on Tuesday sealed Bhojon Bilash restaurant and detained its manager and supervisor, while Pach Bhai and Panshi eateries were fined Tk 80,000 each. Meanwhile, magistrate Palash Kumar Bashu who led the drive, said the foods served in the restaurants were of substandard quality. Read: Freight transport strike in Sylhet on November 9 and 10 Bhojon Bilash had not renewed their trade licence since 2019 and they possessed no legal documents authorising them to serve food, he said. “Temporarily we have sealed the restaurant and taken two officials of other restaurants into custody for interrogation,” said the magistrate. Magistrate Palash claimed during earlier drives too, they found stale foods in the restaurants.