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Bars and restaurants indicate losses caused by high prices, says association

The bar and restaurant sector has suffered from the effects of rising prices in the country. A survey by the Brazilian Association of Bars and Restaurants (Abrasel), carried out between June 21 and 28, pointed out that 29% of establishments had losses in May due to inflation.

In all, 75% of them pointed to the increase in food and beverage prices as the cause of the negative result.

In addition, another 36% stated that they were operating in balance, that is, with neither losses nor gains in revenue. Already 35% of the businesses in the branch said they worked with profit in the last period. In all, the entity heard 1,698 companies.

The percentages were stable in relation to the April poll, when 35% profited and 28% closed the month in the red.

Abrasel’s president, Paulo Solmucci, points out that the inflationary situation in Brazil has been an obstacle for the category.

“Our challenge is inflation, because it is very strong. The sector is earning a lot, it should grow 5% this year in real terms. But inflation is very strong. Food inflation already exceeds 16%. And there are other costs that impact us, like energy and fuel,” she points out.

In June, 45% of the bars and restaurants that responded to the survey had to replan their menu prices. However, corrections remained below official inflation.

“The sector transferred only 6.3% to consumers and the country’s average inflation was 12%. We are passing through almost half of average inflation and almost a third of food inflation,” he emphasizes.

Faced with this scenario, the president draws attention to overdue debts and bills. At the moment, 64% of companies are in this situation. “This squeezes the company’s results, even though it sells well. It is difficult to pay the debts that we have accumulated during the pandemic, for example”, he reinforces.

“Billing is back. But the consumer’s income is compressed. In the last 12 months, this income has dropped by around 8%. Even though more people have purchasing power, it is still tight. This jeopardizes the result”, explains Solmucci.

In the short term, Abrasel does not see significant changes in the scenario. “We are expecting a slightly easier second half, but nothing too different. Unfortunately, we believe that we will continue with this difficulty of passing on the costs of inflation”, she ponders.

“Now, there is this movement of zeroing fuel taxes, which helps to contain inflation and our costs with bikers and deliveries. The Auxílio Brasil, rising to R$600, also improves income at the base of the pyramid and helps us”, he concludes.

Source: CNN Brasil

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