Rising Prices Are Not a Whim. Restaurateurs Urge the Cabinet to Engage in Dialogue on Service Charges

Марина Онегина Economy
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The "HoReCa Club" Association, representing the interests of the hotel and restaurant business, commented on the statements made by the First Deputy Prime Minister Daniyar Amangeldiev. He stated that including a service charge in the cost of dishes is an unlawful step on the part of restaurateurs.

According to the "HoReCa Club," the hospitality industry in Kyrgyzstan is currently facing an important choice: to preserve jobs or sacrifice them for the sake of populism. The association urges the government to see the real human destinies behind the numbers in reports. They emphasize that 15% is not just an addition; it is a matter of life for many people in Kyrgyzstan.

The discussion regarding the cancellation of the 15% service charge touches on key aspects of the survival of the entire industry. Restaurateurs stress that these funds have never been a "bonus" for business. "This is bread for 400,000 citizens of our country," they assert. In the HoReCa sector, every sixth working resident is employed, including cooks, waiters, and technical staff, who have chosen to stay and work in the country rather than go abroad for construction jobs.

Social Consequences

The attempt to exclude these 15% from the establishment's economy is, according to the association, a direct blow to the financial well-being of ordinary workers. "If these funds are not legally included in the cost of dishes, hundreds of thousands of families will be on the brink of migration," the "HoReCa Club" states and presents the pricing structure in restaurants:

The total cost price is between 83% and 89%.

"Only 11-17% margin remains for development, loan repayment, and risks. This is the critical minimum. If businesses cannot cover the inflation of raw materials, the industry simply will not survive," the association adds.

It is important to note that the food service industry is not just a resale of products, but a full-fledged food production that adheres to strict HACCP standards and offers world-class service. Every receipt reflects the labor of farmers, logisticians, technologists, and waiters.

"We urge the government to engage in constructive dialogue rather than impose sanctions. Price increases on the menu are not greed but a cry for help. This is the only way to preserve jobs and not leave 400,000 people without a means of livelihood. We demand that HoReCa be recognized as a strategic industry and that one-sided pressure be stopped. Our goal is to protect not profit, but the right of people to work and live in their homeland," the association noted.

It is worth reminding that starting from January 1, 2026, a decree will come into force in Kyrgyzstan prohibiting the collection of service charges in public catering establishments, including cafes and restaurants. This means that there should be no line for "service charge" on the receipts.
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