Head of Restaurant Union: Restaurant Owners on the Brink of Bankruptcy

The head of the Restaurant and Self-Service Union has reported the dire situation of the restaurant industry, stating that restaurant owners are on the verge of bankruptcy. Ali Akbar Rahbari attributed a 50% decrease in restaurant sales to the surge in essential goods prices and the decline in people's purchasing power. He noted that over the past two years, the conditions for restaurant owners have reached a crisis level, primarily due to rising inflation rates in the economy, which have led to increased prices, especially for food items. Consequently, the over 70% inflation in food prices in recent months has not only made household budgets tighter and less effective but has also resulted in decreased sales in restaurants and fast food outlets, leading to bankruptcy and changes in business operations within this sector. The ILNA news agency reported on July 17 from Shiraz that customers at restaurants and fast food outlets are dwindling daily due to rising prices, forcing some to switch to other jobs. According to this news agency, fast food outlets in Shiraz are on the brink of bankruptcy, with rising costs making falafel and sambusa increasingly popular. In just the past three months, 150 fast food outlets in Shiraz have had to change their business operations. The report indicates that traditional restaurants are facing similar challenges, with price changes and a lack of customers. In this context, the head of the Pizza and Food Union in Shiraz told ILNA that price increases are occurring 'day by day.' Mohammad Reza Ahmadpanah stated that rising prices have severely diminished people's purchasing power, and currently, most fast food and sandwich shops in the city are on the verge of bankruptcy. On May 17, the head of the Restaurant Union mentioned that 30 to 35% of restaurant owners have canceled their business licenses and changed professions. Ali Asghar Mirabrahimi attributed this trend to the sharp rise in food prices and the decline in people's purchasing power. He emphasized that the trend of restaurant closures began last year but has escalated significantly this year. On May 16, Khabar Online reported that the closure of 255 restaurants in Mashhad was a new shock to the restaurant market, indicating that the decline in people's purchasing power has profound effects on unemployment, which will continue to increase over time. Inflation is erasing jobs; fast food outlets are on the brink of bankruptcy.