The country's restaurant sector is facing a severe crisis due to energy shortages, persistently high inflation, harassment in the name of trade unions, overlapping regulatory controls, and the unchecked expansion of illegal street food businesses, the Bangladesh Restaurant Owners Association (BROA) said on Tuesday.
Speaking at a press conference at the Dhaka Reporters Unity in the city, BROA leaders called for immediate and coordinated government intervention to protect an industry that supports millions of livelihoods.
BROA Secretary General Imran Hassan said that business owners and consumers had expected relief following political and economic transitions after the COVID-19 pandemic, but sustained inflation, market instability and rising operational costs have instead intensified pressure on restaurants.
Presenting the keynote paper, he said the uncontrolled rise in prices of essential commodities has sharply 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-sized establishments towards closure.
BROA identified the acute gas and energy crisis as one of the most pressing challenges. Since December, restaurants across the country have been grappling with shortages of LPG, while pipeline gas connections had previously been disconnected.
This has forced owners to rely on costly LPG cylinders controlled by private syndicates, significantly increasing operating expenses, the association said. Harassment of restaurant owners in the name of trade unions was cited as another major concern.
BROA said 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.
High inflation and abnormal increases in commodity prices have further worsened the situation. While inflation has risen sharply, restaurant owners are unable to proportionately increase food prices due to consumers' limited ability to pay, resulting in mounting losses and widespread closures, Imran Hassan said.
The association also highlighted the absence of a one-stop service system for restaurants. Currently, the sector is overseen by multiple ministries and regulatory agencies, leading to overlapping inspections, bureaucratic complexity and frequent harassment.
Such fragmentation discourages compliance and undermines entrepreneurship, BROA said.
Unlicensed street food businesses have also expanded rapidly, creating 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, BROA warned, not only threatens public health but also weakens 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 in the food, fuel and energy markets.
To address the crisis, the association called for immediate steps to resolve gas supply problems, including effective management of LPG distribution, action against syndicates, expanded gas exploration and restoration of natural gas connections for restaurants where feasible.
It also urged the government and political parties to adopt realistic measures to curb inflation and stabilise commodity prices.
BROA further proposed the establishment of a dedicated one-stop service under a single authority to streamline licensing, VAT registration, food safety compliance and revenue collection.
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