Three out of four entrepreneurs expect to earn more on Valentine’s Day; The situation in the RS, however, is worrying

The president of Abrasel comments on the scenario of the state, where more than half of the entrepreneurs suffered losses in the month of April

OR

%20

%20%09Valentine’s Day is the most important date of the year for most bars and restaurants, according to the Brazilian Association of Bars and Restaurants (Abrasel). And, in 2024, 74% of entrepreneurs expect an increase in revenue compared to last year. Over two-thirds (66%) expect to earn up to 30% more this year.

• Receive the main news directly on WhatsApp! Subscribe to the Terra channel

“Valentine’s Day is a crucial date for many structures and we are confident that this year will bring positive results in most of the country. However, it is clear that we must mention Rio Grande do Sul, where the situation is very serious and needs attention,” says Paulo Solmucci, president of Abrasel.

This was made known by a survey conducted by the same association, which interviewed 2,748 entrepreneurs from across the country and showed optimism regarding the date. Despite this, April data shows that in Brazil 26% of companies operate at a loss; 36% of entrepreneurs reported a profit, while 38% were in financial balance. Compared to March there were no significant changes in the results.

According to the president of Abrasel, Inflation remains ‘a significant challenge’. Around 38% of business owners made no changes to their menu prices, with the IPCA showing 3.69% growth between May 2023 and April 2024.

The survey also addressed the issue of late payments, such as fees, taxes and rent, revealing that 40% of business owners admitted to having late payments. Late payments include: federal taxes (72%), state taxes (53%), and bank loans (38%).

Situation in Rio Grande do Sul

In the state hit by heavy floods, Abrasel interviewed 131 businesspeople. Of these, 53% reported working at a loss in April, when rains were already hitting Rio Grande do Sul. Only 17% made a profit. And this situation worsened in May, when floods hit several cities and much of the capital, Porto Alegre.

“Even facilities that weren’t directly affected by the floods have seen a brutal drop in revenue since April, here’s why Most of them will not be able to pay their salaries in June. Urgent action from the authorities is needed“, claims Paolo Solmucci.

Source: Terra


Rose
Rose James is a Gossipify movie and series reviewer known for her in-depth analysis and unique perspective on the latest releases. With a background in film studies, she provides engaging and informative reviews, and keeps readers up to date with industry trends and emerging talents.