Morocco’s Restaurant Industry Faces Crisis as Bankruptcies Surge Amid Rising Costs

Tax and social pressure, unfair competition from mobile cafes, significant increases in food prices... These are all factors that explain the bankruptcies of several cafes and restaurants. Between 25 and 30% of cafes and restaurants are on the verge of bankruptcy, warns the weekly Maroc hebdo. Referring to the tax and social pressure, Noureddine El Herrak, president of the National Federation of Cafe and Restaurant Owners, says that the municipalities and the CNSS "have imposed considerable fines on professionals that they are unable to pay, given the dramatic consequences of the Covid crisis on the activity of cafes and restaurants." As for the increases in food prices, especially fruits and vegetables, they have reached up to 400%.

Mohamed Abou El Fadel, secretary general of the Moroccan Federation of Cafes and Fast Food Restaurants, points to the unfair competition from mobile cafes. While they offer their customers products at very attractive prices, their quality is sometimes problematic. "Our federation has repeatedly alerted the Ministry of the Interior to the danger posed by these mobile units to our profession, but in vain," complains El Fadel. He warns: "if the government does not take urgent action, the entire sector will collapse. This threatens the country with an unprecedented social crisis".

Faced with the disastrous economic climate, the National Federation of Owners has sent correspondence to the Minister of Economy, Nadia Fettah Alaoui, and her colleague in Industry, Ryad Mezzour, dated Friday, December 8, 2023, requesting the promulgation of a "bankruptcy decree" to allow them to close their businesses without jeopardizing the social situation of thousands of employees. "This bankruptcy decree aims to establish a simplified administrative procedure that will allow cafe owners to change their activities or simply close up shop, and for employees to benefit from social benefits so as not to sink into poverty," explains Noureddine El Herrak.