BENGALURU: With various state governments announcing closure of shopping malls, schools and colleges, and corporates ordering employees to work from home, restaurant businesses across India is severely hit. Various segments in the food services sector have taken a hit in view of the virus scare amongst people, the National Restaurant Association of India (NRAI), a body of 800 restaurant partners, told TNIE.
“There has been a definite impact of the epidemic in the overall food services business, with various segments being impacted in varying degrees. Banquets are the worst hit segment, largely due to travel curbs and a general avoidance of people in getting into larger gathering.
In-restaurant dining is also seeing a big impact in last few days, reporting an approximate 30-35 per cent drop in business; restaurants located within malls have recorded a sharper drop. The delivery segment, so far, is seeing the least impact. Certain untrue and fictitious information on social media — such as meat consumption leading to novel coronavirus — is aggravating the impact, despite there being no scientific evidence to back this claim,” NRAI said.
The association said that since the industry works on a fairly high operational cost, the prolonged crisis could result in many businesses being shut and an overall job loss. Analysts predict an immediate 50-60 per cent drop in revenues of a majority of restaurants across the country, as a result of fewer people venturing out, avoiding dining out, and myths that non-vegetarian and Chinese foods spread the virus.
Food delivery companies such as Swiggy and Zomato refused to comment on the impact on the volume of orders as a result of Covid-19 outbreak. The companies said that in line with the advisories issued by the World Health Organisation and Ministry of Health and Family Welfare, their delivery staff and partner restaurants are being duly informed. Zomato CEO Deepinder Goyal said the company has started “contactless delivery” to enable delivery of safe and hygienic food.
All the delivery staff have been provided with gloves and sanitisers. Both Swiggy and Zomato said they have created a special fund to support the ground staff in case of health emergencies.
Restaurants inside malls see footfalls decline
Banquets are the worst hit segment, largely due to travel curbs and a general avoidance of people in getting into larger gathering. In-restaurant dining is also seeing a big impact in last few days, reporting an approximate 30-35 per cent drop in business; restaurants located within malls have recorded a sharper drop.