Written by The Banking Post
The Bangladesh Restaurant Owners’ Association (BROA) has warned that the country’s restaurant sector is facing one of the toughest periods in its history, calling for immediate government intervention to protect millions of livelihoods.
Speaking at a press conference in Dhaka on Tuesday, BROA leaders said persistent inflation, rising operational costs, and market instability are forcing many small and medium restaurants toward closure.
“Uncontrolled price hikes of essential commodities have sharply reduced consumers’ purchasing power,” said Imran Hasan, BROA secretary general. “Dining out is becoming unaffordable, while production costs keep rising, putting immense pressure on restaurant owners.”
The association cited the acute gas and energy crisis as the sector’s most pressing challenge. Since December, shortages of LPG and disconnections of pipeline gas have forced restaurants to rely on expensive cylinders controlled by private syndicates, dramatically increasing operating costs.
BROA also highlighted harassment by politically backed trade union groups, who often extort money from small and medium restaurant owners through threats and intimidation, creating an unsafe business environment.
Rising inflation and soaring commodity prices have further squeezed margins. Restaurant owners cannot pass on costs to customers due to limited purchasing power, leading to mounting losses and closures.
Fragmented regulation is another hurdle. Restaurants are monitored by multiple ministries and agencies, resulting in overlapping inspections, bureaucratic hurdles, and frequent harassment, discouraging compliance and entrepreneurship, BROA said.
Unlicensed street food vendors have compounded the crisis by offering cheaper alternatives without maintaining hygiene standards or paying taxes, creating unfair competition for formal businesses.
BROA called on the government to take urgent measures, including improving LPG distribution, cracking down on syndicates, expanding gas exploration, and restoring natural gas connections where possible. The association also urged authorities to control inflation, stabilise commodity prices, and establish a one-stop service system to simplify licensing, VAT registration, food safety compliance, and revenue collection.
“Clear political commitment and coordinated policy support are essential to prevent the collapse of the restaurant sector,” said Imran Sarker, adding that timely action is critical to safeguard jobs and sustain the industry.
