Restaurant sector stares at massive losses as states reimpose strict Covid-19 curbs
The restaurant sector, which was limping back to normalcy post the 2020 lockdown period, is once again staring at huge losses as several states have reimposed strict Covid-19 curbs amid a second wave of the virus outbreak.
India is staring at a second Covid-19 wave with daily numbers crossing the 1-lakh mark and businesses are once again worried about the economic slowdown as a result of curbs that states are announcing to tackle the virus spread.
Governments of several states have imposed strict curbs, including partial and complete lockdowns, to control the Covid-19 situation. While Maharashtra has imposed a partial lockdown, Delhi government has announced a night curfew from 10 pm to 5 am till April 30.
Night curfew in Delhi means non-essential services such as restaurants, bars, malls and theatres will be allowed to operate from 10 pm to 5 am in Delhi.
This news has spelt doom for the restaurant industry which was making nascent business recovery.
Atul Bhargava, the president of the Connaught Place Association predicted a massive job loss in the months to come.
"From business point of view, this is wrong. Shops will have to shut by 9 pm to be able to go home by 10 pm. There will be massive job loss in [the] months to come. Owners will have to ask employees to leave as businesses, especially hotels and restaurants, will be hit hard," Bhargava said.
"Government hasn't helped traders and businesses. Traders wanted help with loans, most wanted rental relief but government hasn't helped. Reverse migration will begin shortly as job opportunities will shirk," he added.
Zorawar Kalra, owner of Massive Restaurants Pvt Ltd with brand such as Farzi Café and Masala Library, said: "We understand the need of the hour but lockdowns and curbs will have a huge impact on sales and on the survivability of the industry as a whole. Takeaway and delivery alone cannot sustain a restaurant enterprise. Already there was a 50 per cent cap and now this will definitely affect business in a huge way."
According to industry experts there will be bloodbath in the industry because of Covid-19 curbs. Since March 2020, when the nationwide lockdown was imposed, nearly 40 per cent restaurants have shut shops, as per National Restaurant Association of India (NRAI) estimates. Those who have managed to survive, their cash reserves have dried up.
Sanjeev Mehra, president of Khan Market Association, told India Today TV, "The economy is in great difficulty. In India, people visit restaurants with family at night around 9 pm. Because of the night curfew, restaurants will have to start winding up by that time."
"The curfew and lockdowns will have a psychological impact too. Last year, people had started holding money because they were unsure of future and medical expenses due to Covid-19. My friends and family members paid Rs 6-7 lakh when they got treated for Covid-19. The cycle of saving and not spending will start again, dampening business, which was seeing some recovery recently," he added.