Central aid vital for survival of eateries
The third wave of the Covid-19 pandemic, replete with Sunday lockdowns, night curfews and other curbs, has hit restaurants and eateries hard. Their steady recovery from the destructive second wave has suddenly lost momentum with state governments mounting fresh restrictions to rein in the pandemic. People are trying to avoid eating out once again, while many are reducing discretionary spends. Some established restaurants may have seen a marginal surge in takeaway and delivery business, but most others are staring at another dull season. Restaurants in several states are operating at half the capacity, with shutters going down early owing to the night curfew. Big restaurant chains have shut several outlets and stalled expansion plans.
Last week, Prime Minister Narendra Modi asked chief ministers to minimise the damage to the livelihood of the common people. He also asked them to keep in mind the importance of maintaining the momentum of the economy while implementing containment strategies. According to the RBI, Omicron may turn out to be “more of a flash flood than a wave”. It however said the infection surge has dented the recovery to a large extent, albeit temporarily.
The fact is that restaurant owners and thousands of people working with them are facing a tough time as their revenues nosedive. The Federation of Hotel & Restaurant Associations of India, India’s apex hospitality association, claims that the financial loss from the preceding two waves caused around one-third of restaurants to shut down permanently. The hospitality industry has reported losses of `1.4 lakh crore and around 50 million jobs were lost due to the pandemic, according to the FHRAI. Among others, it has asked the government to provide a moratorium for loans taken by them. It has also requested working capital support with a guarantee from the Centre to banks and NBFCs. A healing touch from the government may be inevitable for the survival of the sector.