KUALA LUMPUR, June 12 -- Malaysia's cafe and restaurant operators are currently caught in a perfect storm, and the latest industry data suggests that the clouds are not clearing.

According to the latest report from Retail Group Malaysia (RGM), sales at cafes and restaurants plummeted by 4.6 per cent in the first quarter of 2026 compared to the same period last year.

This is a jarring reversal from the 3.1 per cent growth seen in the final quarter of 2025. Even more telling is the gap between hope and reality: as recently as March, F&B businesses had forecast a growth of 1.9 per cent for the quarter. Instead, performance crashed far below those optimistic projections.

The timing is also notable, occurring during a window that should hav...