KUALA LUMPUR, March 11 — Food and beverage (F&B) kiosks and stalls saw double-digit growth of 13.5 per cent for the whole of 2023 as compared to cafes and restaurants that only recorded a 4.6 per cent growth, according to Retail Group Malaysia.
In its Malaysia Retail Industry Report released in March, it said F&B stalls and kiosks are only expecting a lower growth rate of 4.4 per cent for the first quarter of this year despite a robust growth of 21.5 per cent in the first quarter of 2023.
F&B stalls and kiosks also saw a growth of 15.8 per cent in the last quarter of 2023 while cafes and restaurants only saw a growth of 7.5 per cent in the same period.
“Despite the Chinese New Year festival and higher tourist activities, cafe and restaurant operators are anticipating their businesses to ease at 2.9 per cent during the first quarter of 2024, as compared to the same period last year,” it said.
Cafes and restaurants saw a growth of 9.7 per cent for the first quarter of 2023 but it contracted by 10.1 per cent in the second quarter before rising to 9.6 per cent in the third quarter and 7.5 per cent in the last quarter.
The report attributed the moderate growth rate of 7.5 per cent in the last quarter of 2023 to the year-end holidays and tourist arrivals.
As for kiosks and stalls, they recorded a growth of 10.1 per cent in the second quarter of 2023 followed by a 19.5 per cent growth before tapering to 15.8 per cent in the last quarter.
“For 2024, higher food prices and higher operation costs will remain the struggles for F&B operators in Malaysia,” it said.
“Weak Ringgit contributes to higher costs of raw materials and food ingredients,” it added.
It also said the boycott of several international F&B franchises due to the Israel-Hamas war will remain in the medium term.
