Restaurant sector in deep crisis amid fueling LPG price, BROA calls for urgent govt action

The Bangladesh Restaurant Owners' Association (BROA) has expressed deep concern over the worsening crisis in the country’s restaurant sector, calling for immediate and coordinated government intervention to save an industry that supports millions of livelihoods.

Speaking at a press conference held at the Dhaka Reporters Unity in the city on Tuesday, BROA leaders said the sector is passing through one of the most difficult periods in its history.

Imran Hasan, secretary general of the organisation, said that while business owners and citizens expected relief following political and economic transitions after the COVID-19 pandemic, persistent inflation, market instability, and rising operational costs have instead intensified the pressure on restaurants.

He presented the keynote, which said the uncontrolled increase in prices of essential commodities has severely reduced consumers’ purchasing power.

As dining out becomes increasingly unaffordable, restaurants are losing customers while production costs continue to rise, pushing many small and medium establishments toward closure.

BROA identified several major challenges confronting the restaurant industry. Foremost among them is the acute gas and energy crisis.

Since December, restaurants across the country have been struggling with shortages of LPG gas, while pipeline gas connections were previously disconnected.

This has forced owners to rely on expensive LPG cylinders controlled by private syndicates, sharply increasing operating costs, said BROA.

Another major concern is the harassment of restaurant owners in the name of trade unions.

BROA said that most restaurants are small and medium enterprises that already provide food, accommodation, and other social support to workers.

However, politically backed groups often misuse trade union identities to extort money through threats and intimidation, creating an unsafe and unstable business environment.

Higher inflation and abnormal increases in commodity prices have further worsened the situation.

While inflation has climbed sharply, restaurant owners cannot proportionately increase food prices due to consumers’ limited ability to pay.

This imbalance has led to mounting losses and the closure of many establishments, he said.

BROA also mentioned the absence of a one-stop service system for restaurants.

Currently, restaurant businesses are monitored by multiple ministries and regulatory agencies, resulting in overlapping inspections, bureaucratic complexity, and frequent harassment.

The association believes this fragmented system discourages compliance and entrepreneurship, said Imran Sarker.

The uncontrolled expansion of unlicensed street food businesses has created unfair competition.

Many street vendors operate without maintaining hygiene standards or paying VAT and taxes, while registered restaurants struggle to comply with strict regulations.

This not only threatens public health but also undermines formal businesses.

BROA expressed concern over the lack of clear political commitment to protect the restaurant sector.

Despite being recognised as an industry, restaurants continue to receive limited policy support compared to large corporate players dominating food, fuel, and energy markets.

To address the crisis, BROA called for immediate steps to resolve the gas supply problem, including effective management of LPG distribution, action against syndicates, expansion of gas exploration, and restoration of natural gas connections for restaurants where feasible.

BROA also urged political parties and the government to adopt clear and realistic plans to control inflation and stabilise commodity prices.

Establishing a dedicated one-stop service under a single authority was proposed to simplify licensing, VAT registration, food safety compliance, and revenue collection, said BROA.

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