An empty shopping district in Beirut, Lebanon, on March 17, 2021. Reuters
An empty shopping district in Beirut, Lebanon, on March 17, 2021. Reuters
An empty shopping district in Beirut, Lebanon, on March 17, 2021. Reuters
An empty shopping district in Beirut, Lebanon, on March 17, 2021. Reuters

‘Every day we discuss closure and then decide to keep going,’ say Lebanon’s restaurateurs


Fatima Al Mahmoud
  • English
  • Arabic

Once bustling with life, Beirut’s famed Gemmayze Street is now deserted.

Lined with damaged homes, collapsed buildings and closed businesses, the residential and commercial hub was one of the city’s most vibrant destinations – but not any more.

“It’s like a nightmare. We’ve never seen anything like this before,” said Charbel Bassil, owner of renowned Le Chef restaurant, on the first day of reopening after a nationwide lockdown.

One of Beirut’s oldest and most popular restaurants, Le Chef, in  in Gemmayze, is one of many businesses struggling to stay afloat under the weight of Lebanon’s compounding crises.

The family business reopened its doors on March 22, as per the government’s lockdown strategy, but customers were hardly pouring in.

The modest space, which was often full to the brim for lunchtime, now welcomed only three tables after a full day of work, or about 10 customers.

The burst of vigor and energy that characterised the dining experience at Le Chef was replaced by a sense of moping and melancholy.

"We're doing our best to keep going, but everything is a mess," Mr Bassil told The National.

Le Chef , founded in 1967, weathered civil wars and crises, but none harmed trade like Lebanon’s current events.

“This is our family business. I’ve been working here since I was a child, but nothing we lived through was as bad as this,” Mr Bassil said.

After almost losing the restaurant in the Beirut blast, Le Chef was able to rebuild thanks to donations, $5,000 of which came from the actor Russell Crowe. But what the port explosion could not destroy, the economic crisis shattered.

"We can't work in this crisis. Suppliers won't give us goods because of the market rate and we don't know how to price our dishes," Mr Bassil told The National.

“We’re a restaurant for the people. We want to serve high-quality food for affordable prices.”

Lebanon’s currency lost more than 80 per cent of its value since the beginning of the economic crisis, declared one of the worst in the country’s history.

In one year, the Lebanese pound, which once traded at 1,500 to the US dollar, slumped to 15,000 on the parallel market. The minimum wage shrank from $450 to an average of $50, leaving people with insufficient salaries to cover rising living costs.

Political deadlock and the ruling class’s inability to form a government is stalling the introduction of essential reforms needed to unlock international aid.

Consequently, the rocketing currency exchange has hit sectors of all sorts.

“All our struggles are related to the dollar rate. We have to pay for most of our products depending on the black market’s prices,” said Huwaida Rajab, co-owner of Orenda, a vegan cafe in the Mar Mikhael district.

Also significantly hit by the Beirut blast, Orenda picked up the pieces and moved forward with business despite the challenges. It was forced to close again several times by lockdown measures and reopened for dine-in services on Tuesday, March 23.

"We don't know how this will go – we're waiting for customers," Ms Rajab told The National. "We're still pushing through and we have hope, which is why we keep fighting for this business."

But hope is not enough to sustain trade, which is why Ms Rajab and her founding partner muse the question: to close down or hang in there a little longer?

“We discuss this every day and every day we decide to keep going,” Ms Rajab said. “We’re waiting to see how long we can do this for.”

Despite the opportunity to be back in business, Lebanon’s hospitality sector is wary about reopening because operational costs now outweigh profits.

Fewer than 1,000 restaurants and cafes are expected to reopen this week, said Aref Saade, treasurer at the Syndicate of Owners of Restaurants, Cafes, Night-Clubs and Pastries.

Prior to the crisis, Lebanon had about 8,500 tourist institutions in business. The number decreased to 4,500 when Covid-19 struck, and is anticipated to sink below 1,000 due to the soaring and unstable currency exchange rate.

"Businesses are refraining from reopening – it's just not worth it," Mr Saade told The National.

Between the cost of supplies, maintenance, rent, salaries, Covid tests and more, it is now more expensive for Lebanon’s once-booming tourism sector to reopen than it is to shut down.

By the end of 2019, more than 465 restaurants and cafes had closed due to the economic crisis and decrease in the public’s purchasing power, the syndicate said.

Financial losses to the sector were estimated to be about $1 billion, said its president, Tony Ramy.

To support the hospitality sector, Lebanon’s caretaker government eased lockdown measures for Christmas and New Year. The decision backfired, with an overwhelming Covid-19 surge that brought health services to their knees.

A subsequent nationwide lockdown took effect on January 7. Restaurants and cafes have been closed since then.

Despite this much-needed window for hospitality, health experts are concerned about reopening the country.

The head of Lebanon’s parliamentary health committee, Dr Assem Araji, said Lebanon recorded 992 admissions to the intensive care unit on Monday, March 22, the highest figure since the start of the pandemic.

“This number is prone to increasing after the chaotic reopening of the country and lack of adherence to safety measures,” he said on Twitter. “Be careful, prevention is better than cure.”

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Neil Thomson – THE BIO

Family: I am happily married to my wife Liz and we have two children together.

Favourite music: Rock music. I started at a young age due to my father’s influence. He played in an Indian rock band The Flintstones who were once asked by Apple Records to fly over to England to perform there.

Favourite book: I constantly find myself reading The Bible.

Favourite film: The Greatest Showman.

Favourite holiday destination: I love visiting Melbourne as I have family there and it’s a wonderful place. New York at Christmas is also magical.

Favourite food: I went to boarding school so I like any cuisine really.

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Price: expected to start at Dh1,432,000

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3. Hajj 

4. Shahada 

5. Zakat 

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Where to apply

Applicants should send their completed applications - CV, covering letter, sample(s) of your work, letter of recommendation - to Nick March, Assistant Editor in Chief at The National and UAE programme administrator for the Rosalynn Carter Fellowships for Mental Health Journalism, by 5pm on April 30, 2020

Please send applications to nmarch@thenational.ae and please mark the subject line as “Rosalynn Carter Fellowship for Mental Health Journalism (UAE programme application)”.

The local advisory board will consider all applications and will interview a short list of candidates in Abu Dhabi in June 2020. Successful candidates will be informed before July 30, 2020. 

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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The biog

From: Upper Egypt

Age: 78

Family: a daughter in Egypt; a son in Dubai and his wife, Nabila

Favourite Abu Dhabi activity: walking near to Emirates Palace

Favourite building in Abu Dhabi: Emirates Palace

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