Bars and restaurants face challenging months in 2024 in Amazonas

Difficulties

In Amazonas, in the first month of the year, 30% of companies in the sector reported losses

Manaus (AM) — The first months of this year were challenging for the bars and restaurants sector, according to Abrasel research on the challenges faced by the sector in 2024. The study reveals that January was a difficult month for establishments, especially those located in areas with less tourist flow . In Amazonas, in the first month of the year, 30% of companies in the sector reported losses, compared to 20% that closed December in the red, a significant increase of around 10 percentage points in this index.

Furthermore, there was a significant drop in the percentage of establishments that recorded a profit, falling to 34% in January. 91 businesspeople from the sector were interviewed across the state of Amazonas, between the 19th and 26th of February.

The survey also indicated that 67% of bars and restaurants in the state had lower revenue in January than in the previous month. The drop in revenue helps explain the poor performance.

“The number of companies operating at a loss grew, a rate that reached 30%. January was a month of vacation, with many people leaving Manaus, both inland and outside the state, and the flow of tourists, unfortunately, did not make up for this deficit. Many companies still carry high debt and the drop in revenue unbalances their cash flow. The account is negative, there’s no way around it. Carnival was not enough to balance this equation, more money is needed to circulate in the economy of Manaus and Amazonas for this. January is a slightly atypical month. The good performance of the sector in December helps to create a contrast with the low in the first month of the year, when many families are on vacation and away from major centers”,

explains Rodrigo Zamperlini, president of Abrasel in Amazonas.

The research corroborated Abrasel’s estimate in Amazonas, showing that during Carnival, 85% kept their doors open during the festivities. Of these, 43.5% of companies said they had an increase in revenue compared to last year’s Carnival — this increase, on average, was 14%. Another 13% performed the same as in 2023 and 38% were below — 5.5% did not exist in 2023.

Another challenge faced by the sector is the difficulty in readjusting menu prices. Around 38.8% of establishments were unable to increase prices in the last 12 months, while 53% made adjustments in line with or below inflation.

Only 8.2% of bars and restaurants have managed to increase their prices above inflation. Furthermore, 43.5% of establishments reported delays in their payments, highlighting the financial difficulties still faced by the sector.

*With information from consultancy

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