KUALA LUMPUR: Malaysia Retail Chain Association (MRCA) Food and Beverages (F&B) Division will plead for fair charges from delivery platforms as the F&B retailers have been charged with high commissions.
MRCA F&B Division chief Datuk Seri Garry Chua said most F&B retailers have to rely on takeaways as customers are not allowed to dine in. However, high commissions of up to 30% being charged by the takeaway platforms have made it harder for them to sustain their businesses.
“Although the retailers could have online orders, the amount of orders are very small and they could only achieve a maximum of up to 10-20% in profit.
“I think the maximum amount of commission that should be charged by platforms is between 15% and 20%, which is a more viable rate. If the lockdown continues until the end of the year, I think 90% (of F&B retailers) will be closed,” he said during the virtual launch of the MRCA F&B Division today.
Besides lobbying for fair charges by delivery platforms, Chua said the division will also lobby for healthy competitive behaviour from the delivery platform as well as permission to dine in for vaccinated patrons as soon as possible.
The MRCA F&B Division has pledged to lobby for extension and improvement to the Covid-19 Act to protect and preserve retail businesses affected by movement control orders (MCOs), he said.
The F&B Division will also seek government business recovery funding for small and medium enterprises (SMEs) and initiate mediation on outstanding rent issues between landlords and tenants during MCOs.
“Most F&B retailers, I would say, are suffering tremendously because they have big rentals to pay. We hope the government would also give us a strong subsidy (rental) of 50%, or at least 30-40%.
“That would help a lot with the goodwill and compassion of landlords. I think most of the F&B retailers could stay in business easier as a result and not collapse because cash flow is very tight,” he said.
With the launch of the division, Chua said the members are expected to gain invaluable opportunities to raise business-related issues and gain unhindered access to first-hand information from the authorities that would greatly benefit their respective business.
In anticipation of a business rebound post-pandemic era, he said the MRCA F&B Division will organise relevant workshops and training to ensure members are well prepared to adapt to the new consumer trend and behaviour in the future.
MRCA F&B Division would also provide members with knowledge and techniques to improve their operational efficiency as well as opportunity for expansion through franchising. – Bernama