Hard to swallow: 25 per cent eateries close for good

Lockdown leaves many restaurateurs unable to pay rent, salaries

Published: 10th June 2020 03:29 AM  |   Last Updated: 10th June 2020 03:29 AM   |  A+A-

One of the restaurants that closed down unable to bear the brunt of the lockdown

By Express News Service

BENGALURU: It is shutters down for many hotels and restaurants in the city now, because of economic slowdown and the lockdown. Under Unlock-1.0. While many establishments decided to open their doors for customers, many others did not, because of renovation and others because of their inability to do so.

According to Bruhat Bengaluru Hoteliers Association (BBHA) data, nearly 25% of the hotels and restaurants will not open again. Most of them, including small eateries and fine dines, were located in areas like Koramangala, Indiranagar, HSR Layout and Outer Ring Road where many software offices and PG centres are located.

P C Rao, BBHA president, told The New Indian Express that the hospitality sector was severely impacted. “Due to the lockdown, around 25% of the hotels and restaurants were unable to pay rent and salaries Now, many are not in a position to bounce back. Those who had rented places did not return and those who owned the premises have now put ‘To-Let’ boards,” he said.

Shanthi K, who ran a small restaurant with home-like food in Koramangala, closed down because of zero business. “We used to serve lunch, both north and south Indian, and some snacks in the evening. But now because of no business and high rent, we have decided not to open again. Our helpers have also gone back,” she said.

Same is the case with David, who ran a cafe in Sarjapura, towards Outer Ring Road. “My cafe was a hit among students and young professionals for evening hangouts, but now I have nothing left. Offices and colleges are shut. I could not handle the two months’ lockdown and there was no takeaway service also, so we had to close down,” he said. The scene is similar across the State where many eateries have closed down because of no business.

On the other end of the scale, people who have lost their well-paying jobs in Bengaluru now want to try their luck by starting small eateries, said a member of the Karnataka Hoteliers’ Association. “The trend is shifting to semi-urban and rural areas where family members of the urbanites reside. Here, people are switching to setting up small eateries and restaurants, but they are not registered so far, as it is just the start and they are also finding it difficult to make ends meet because of the economic crisis,” the member said.


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