You’re stuck cooking at home long after lockdown ends as half a million restaurants may shut down
- About half a million restaurants in India are at the brink of collapse after India extended its lockdown for another 19 days.
- As many as 7.3 million jobs are at risk, reported the Indian Express.
- Most of these restaurants said that they exhausted their cash after paying full salaries to employees in March.
AdvertisementAll those dreaming of rushing to their favourite restaurants right after lockdown ends, well, might not be able to.
That’s because as many as half a million restaurants might not survive the extended lockdown, says an Indian Express report. Few restaurants will be able to make it through the 40 day shutdown with salaries, costs and overheads. This will, in turn, put 7.3 million jobs on risk.
A large number of restaurants say they have already exhausted their cash after paying full salaries to employees in March.
Waiting for the government to announce some relief
Strict social distancing norms that could remain in vogue for months is also likely to affect restaurants. Their only hope is a possible relief package from the government.
The worst affected would be the high-end restaurants. “For premium restaurants, it will take a long time to get back their clientele since foreign travellers form a major chunk of their diners. As a company, if we have to sustain, we have to move towards delivery,” Zorawar Kalra, who manages 25 restaurants including Farzi cafe said.
However, these restaurants might not make as much as they can’t charge for a premium dining experience. According to Katriar of deGustibus Hospitality, the margins for deliveries are very low.
On April 9, the National Restaurant Association of India urged NITI Aayog to take urgent measures to help marginal employees. They wanted them to offer unemployment cover or 50% salary and ration. The body is yet to take a decision on the request.
“One thing is for sure, the industry will take a lot of time to get back on its feet. Many companies will never recover from the losses of the lockdown period,” Anurag Katria, president National Restaurant Association of India (NRAI) told the Indian Express.
See also: 72 South Delhi families told to self-quarantine after pizza delivery boy tests positive
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