Restaurants have lost NIS 7 billion in revenue this year.
1,000 restaurants and cafes in Israel have closed down in the past two years. The Israel Restaurateurs Association, relying on Business Data Israel (BDI) figures, reported this week that in the Tel Aviv region alone, an average of five restaurants a week have closed over the past year.
The Restaurateurs Association predicted the industry, which has 100,000 workers in 8,000 restaurants, would lose a significant proportion of its work force. 77,000 of the 100,000 workers are hired employees.
Restaurant proceeds account for 3% of total business sector proceeds, excluding diamonds. The association also expects industry sales to drop NIS 7 billion to NIS 18 billion, a 30% decrease, compared with last year.
The main reasons for the fall in restaurant and cafe sales are as follows:
- The ongoing recession and the resulting decline in the number of customers and the number of times they frequent restaurants.
- A slump in disposable consumer income.
- The security situation, which has harmed tourism.
- The many terrorist attacks on restaurants and cafes, which has affected morale, and the rise in the number of security guards, which has increased operating costs for restaurants and cafes.
Published by Globes [online] - www.globes.co.il - on November 27, 2002