Your favorite restaurant may be shutting shop in the aftermath of coronavirus as the nation-wide lockdown delivers massive revenue blows to even large restaurant chains.
Your favorite restaurant may be shutting shop in the aftermath of coronavirus as the nation-wide lockdown delivers massive revenue blows to even large restaurant chains. Many restaurant chains are now mulling to shut 20-30% of their branches as they are forced to reassess business strategies, CNBC TV-18 reported citing unidentified sources. Restaurants are also trying to renegotiate rental agreements and dine-in capacity at outlets. Dine-out joints, cafes and restaurants are one of the worst hit sectors along with retail, aviation and hospitality due to coronavirus. While restaurants were allowed to deliver orders, the same is not sufficient for them to run businesses.
In India alone, the restaurant industry is staring at losses to the tune of about Rs 1 lakh crore during the lockdown. The sector employs more than seven lakh people, according to the National Restaurant Association of India (NRAI). The industry is pegged at upwards of Rs 4.2 lakh crore in the country.
With the onslaught of COVID-19 pandemic on earnings, restaurants are now also mulling to cut fixed costs such as employees salaries by reducing the number of staff members, corporate office size etc. Some of them are also considering new rental agreements such as a revenue sharing model, the news channel said. As the government has released guidelines for various industries to restart functions and the focus is on hygiene and sanitation, restaurants expect an increase in hygiene and sanitation costs.
However, in dire times restaurants are also coming up with innovative ways to stay afloat. A popular eatery which has branches in Delhi and Mumbai, along with other Indian cities, is now delivering DIY (Do it yourself) kits at homes for their popular dishes. The kit contains pre-made items such as sauces and dips, and cut vegetables and other necessary ingredients for the dish.