Morocco’s Cafes and Restaurants Feel the Heat as Costs Soar
Morocco, like many countries, is grappling with a turbulent economic climate. The ripple effects of rising costs are being felt far and wide, and a sector particularly hard hit is the vibrant cafe and restaurant scene. Owners are facing a perfect storm of skyrocketing ingredient prices and increased taxes, leaving them struggling to stay afloat and customers questioning their dining-out habits.
The National Federation of Cafe and Restaurant Owners in Morocco paints a stark picture of the situation. Essential ingredients have seen dramatic price hikes:
Red meat: Up from 60 to 140 dirhams per kilogram (a 133% increase)
Poultry: Up from 11 to 28 dirhams per kilogram (a 155% increase)
Butter: Up from 35 to 120 dirhams per kilogram (a 243% increase)
Olives: Up from 12 to 40 dirhams per kilogram (a 233% increase)
* Olive oil: Up from 25 to 110 dirhams per liter (a 340% increase)
Adding to the strain, fruit prices have doubled in the past two years, and coffee, a staple for many Moroccans, has seen its price surge by over 100% in just three months.
These increases are forcing difficult decisions upon cafe and restaurant owners. Many have no choice but to pass on the rising costs to their customers, leading to higher menu prices. This, in turn, impacts everyday Moroccans who are finding it increasingly expensive to enjoy a meal or coffee outside their homes. The simple pleasure of socializing and dining out is becoming a luxury many can no longer afford, forcing a change in social habits and putting a strain on the social fabric of communities.
Adding insult to injury, the cost of doing business itself is becoming increasingly burdensome. Fees and taxes levied on cafes and restaurants have also seen sharp increases. For example, the fee for temporary occupation of public property has skyrocketed by as much as 600% in some areas. Additionally, local authorities have increased the beverage tax to 10% of total sales, further squeezing the already tight margins of these businesses.
The National Federation of Cafe and Restaurant Owners is calling for urgent action. They are urging the government to review the prices of essential goods and consider easing the tax burden on businesses. They are also appealing to the Competition Council to intervene and curb the rising costs, providing much-needed relief to both businesses and consumers.
The current situation highlights the urgent need for sustainable solutions. A balanced approach that addresses both the concerns of struggling businesses and the financial strain on consumers is crucial. Without intervention, the vibrant cafe and restaurant culture of Morocco, a cornerstone of social life and a significant contributor to the economy, is at risk.
