MRCA launches food and beverage division

Malaysia Retail Chain Association (MRCA) has set up a new food and beverage division to represent the voice and plight of its retailers.

Tourism, Arts and Culture Minister Datuk Seri Nancy Shukri officially launched it in an event held virtually using the Zoom platform on July 28, 2021.

MRCA immediate past president Datuk Seri Garry Chua who is also the head of the food and beverage (F&B) division said the division will speak as a unified voice on behalf of F&B retailers to improve their plight. This is in light of the current crisis caused by the Covid-19 pandemic.

“The flourishing F&B retail sector is facing many headwinds and challenges such as high rental cost, staffing, unreasonable charges by delivery platforms as well as cash flow from high investment on opening of outlets,” Chua said at the virtual press conference.

The F&B retailers have been impacted by the imposition of lockdown restrictions with many facing substantially lower demand and decreased sales.

Chua said MRCA will lobby for the extension and improvement of the Covid-19 Act to better protect retail businesses and for fair charges by delivery platforms and anti-competitive behaviour.

It will also lobby for other important issues such as dine-in for vaccinated patrons as soon as possible; business recovery funding for small and medium enterprises and for government-initiated mediation on outstanding rent issues between landlords and tenants during the MCO.

“The inception of the F&B chapter in MRCA marks a new milestone in line with the growth and increasing importance of F&B in the retail sector.

“F&B is also the fastest growing market which will account for 50% of the retail sector for most of the malls and shops in the future,” added Chua.

Chua highlighted the six main objectives of F&B division which among others included, forming a body of retailers specializing in the F&B industry from among MRCA members in order to assist and support each other in matters of business; organizing training programmes to equip members with the right skills and information; and business networking events to foster collaboration, goodwill and better understanding.

He said members are expected to gain invaluable opportunities by leveraging on the cordial relationships between MRCA and various government bodies relevant to F&B operations.

It will also organise relevant workshops in anticipation of a business rebound post-pandemic, to ensure its members are well prepared to adapt to the new consumer trends.

It will also assist members who are interested to look into an opportunity for expansion through franchising.

Also present at the virtual conference were MRCA president Shirley Tay, MRCA vice president and deputy chief of F&B division Valerie Choo and MRCA F&B division treasurer Datuk Kenneth Soh.

Tay said the F&B operators are complaining about the high commission charged by the major food delivery players who are making it difficult for them to financially survive during the pandemic. She asked for a fair commission charges of about 15 to 20 per cent which would help the F&B operators to sustain their businesses.

Nancy, in her pre-recorded video speech, said she hoped that the division launch would offer a platform for the members to expand their business network and foster more collaboration, goodwill and understanding.

She urged MRCA to include digital up-skilling and re-skilling training programs to face the opportunities and challenges ushered in by IR4.0.