NEW DELHI/BENGALURU : Rapid shutdowns in cities to stem the infectious Coronavirus have thrown eateries across the country into a sudden and complete disarray. Revenue dried up abruptly with many restaurants staring at closures, threatening mass layoffs in the sector employing over 7 million.
Given the enormity of the problem is so big, restaurants body National Restaurants Association of India (NRAI) has shot off a letter to the finance ministry seeking an immediate financial bailout package.
“We would like to state that the food service industry, which was already battling through tough times for the past couple of years, is now facing a challenge of mere survival,” NRAI president Anurag Katriar said. The apex body, which represents the interests of over 5 lakh restaurants, proposed deferment of all statutory dues at the central and state level, pay cover for marginal workers, moratorium on bank loans, restoration of input tax credit on GST and waiving off utility dues like electricity, water, etc.
Individual owners are also seeking concession on rentals and deadline extension for licence renewal to keep their businesses afloat. While footfalls were down since February, the mandated closure in select cities only confirms how it all crashed down with breathtaking speed for the Rs 4 lakh crore restaurant industry, say industry executives.
Speaking to this publication, Katriar explained that the food and beverages industry operates with a very high proportion of fixed operating expenses, which makes businesses very high-risk even in case of moderate revenue fluctuations. “For a restaurant, you have to certainty to operate. It doesn’t matter if you’re a big chain or a small corner diner, all are seeing the impact immediately.” While well-funded and insured restaurants are feeling an urgent obligation to carry on for the sake of their workers, small diners are asking employees to stay home.