CONNECT WITH US
eCommerce

eCommerce

Malaysian Coffee Shops Seek Beer Tax Cuts as F&B Sales Drop 4.6%

Retail News Asia logo

Published on

Add as a preferred source on Google
Malaysian Coffee Shops Seek Beer Tax Cuts as F&B Sales Drop 4.6%

Malaysian coffee shop operators want tax cuts and phased wage adjustments in the upcoming Budget 2027. The demand follows a 4.6 per cent sales drop across cafes and restaurants.

The Malaysia Singapore Coffee Shop Proprietors’ General Association wants the Ministry of Finance to lower the Sales and Service Tax on alcohol from 8 per cent to 6 per cent. That matches the rate applied to food and non-alcoholic drinks. The group is also urging officials to roll back the beer excise duty increase imposed in the prior budget cycle.

Licensed food and beverage venues rely on beer sales to subsidise fixed overheads like wages, power, and property leases. Retail Group Malaysia recorded a 4.6 per cent year-on-year sales drop in the first quarter of 2026. It was the first quarterly downturn for the country’s restaurant and cafe sector in nearly three years.

Margins are tightening as higher rents and inventory costs hit businesses already suffering from lower footfall. In commercial hubs like Petaling Jaya, monthly retail shop rents jumped from RM6,000 in 2024 to RM12,000 on lease renewals. Keu Kok Meng, Vice President of the Association and Honorary Secretary of the Petaling Jaya Coffeeshop Association, shared the figures.

Industry cost breakdowns show overheads outpace revenue across high-cost venues. William Lee, owner of Yilo Group and President of Persatuan Pemilik Restoran dan Bistro Malaysia, calculated that goods sold take 40 per cent of gross revenue. Staff costs consume 20 per cent, and rent takes 15 per cent. Utilities, promotional spending, and licensing take another 10 per cent each.


Source link
Related Topics:eCommerce

Disclaimer

We strive to uphold the highest ethical standards in all of our reporting and coverage. We TheMorningPulse.fyi want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It's possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.