The success of the Menu Rahmah initiative proves that F&B operators have been enjoying huge profits all these while

Opinion
17 Feb 2023 • 4:00 PM MYT
FLK
FLK

Used to do a bit of work in corporate restructuring, corporate `undertaker.

image is not available
Photo credit: Harian Metro

Otherwise, how could those participating outlets – which according to the Minister for Domestic Trade and Cost of Living (KPDN) as many as 15,000 premises has joined this effort todate – could possibly survive selling a meal that comprise of a fish or chicken with rice, vegetables, and water, usually in the form of a bottle of mineral water?

The Menu Rahmah initiative - currently a zero-budget initiative meaning all costs for the initiative are borne by participating associations from the F&B and retail sectors, with no subsidy from the government - was officially launched by the Domestic Trade and Cost of Living Ministry (KPDN) on 31 January 2023, where participating restaurants will serve lunch or dinner sets at a fixed affordable price of RM5. It is especially targeted at those from the B40 income group and the hardcore poor, with the aim of providing a sufficient meal. 

When asked whether Menu Rahmah differed from the 1MalaysiaMenu (MR1M) programme offered previously during the premiership of Najib Razak, the Minister said MR1M failed due to the unsustainably low prices that were set. 

Whereas F&B outlets under the Menu Rahmah initiative represented to the Minister that there is still a profit margin to be made on the RM5 price.

The simple fact that 15,000 eateries willingly offer the RM5 meal without government subsidies is the clearest proof that they are not making any losses.

They are just making minimal profits.

No F&B outlet in their right mind would pro-actively and voluntarily join the programme to make losses unless some sort of preferences or incentives are offered by the government to them, which the Minister has confirmed that there are no such incentives presently.

The minister was quoted to have said this is not a one off initiative and he also said he is planning to propose certain incentives for participating restaurant and food operators in the next Cabinet meeting. These may include reduced rental rates and easier applications for migrant labour. He may also seek for a special budget for the initiative, if the government’s assistance is required in the future.

So when Rafizi Ramli suggested recently asking for the public's cooperation in "reprimanding" premises which fail to lower their prices, why the brouhaha criticizing him for such a suggestion?

The public has the right to choose for themselves.

If they felt that the prices at a restaurant are too high, they are free to choose a cheaper option.

And the fact that there are 15,000 F&B outlets who have signed up and are now offering this Menu Rahmah appears to reconfirmed that a lot of the outlets are obsessed with huge profits before this.

Yes, it is all about how much profit a restaurant wanted to make. And this initiative exposed and show proof of this obsession with huge profits amongst the F&B operators all these while.

It is just that under the Menu Rahmah initiative, participating F&B outlets has to sell more to obtain the level of profits they enjoyed prior to participating in this initiative.

The public and consumer should constantly be reminded that there is always a cheaper option available.

Do not wait for the government for a solution.

If it is beyond your present affordability, go and look for a cheaper option.

If the business offering the cheaper option is doing well, their competitors who are selling at a higher price would be compelled to reduce their prices too or they would close their shop.

A change in customer behavior and demand can and will determine the sustainability of every F&B outlets.

The power is in our hands, the consumer.


FLK is a content creator under the Newswav Creator programme, where you get to express yourself, be a citizen journalist, and at the same time monetize your content & reach millions of users on Newswav. Log in to creator.newswav.com and become a Newswav Creator now!  

The User Content (as defined on Newswav Terms of Use) above including the views expressed and media (pictures, videos, citations etc) were submitted & posted by the author. Newswav is solely an aggregation platform that hosts the User Content. If you have any questions about the content, copyright or other issues of the work, please contact Newswav.