Your favourite restaurant may not open after coronavirus lockdown; cafe chains plan to shut branches

By: |
Published: May 11, 2020 4:41 PM

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.

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. 

Also Read: This nation asks citizens to eat cheese as national duty; says, it will save from coronavirus shock

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.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1Myntra, Flipkart, Snapdeal, others begin showing country of origin even as DPIIT suggests Aug 1 deadline
2Consultants roped in to evaluate land monetisation process for BSNL, MTNL: CMD
3ICICI Bank to raise up to Rs 15,000 crore to bolster capital base