Amid the coronavirus pandemic, it’s unfortunate that the restaurant industry is one of the worst-hit sectors. With more than 50 days of lockdown in the country, many restaurants have been shut down, generating hardly any revenue. And even though many restaurants are open for delivery and takeaway, the coronavirus pandemic and lockdown has led to many people not opting to eat out, even if given a choice. According to the National Restaurant Association of India (NRAI) over 20 lakh, Indians may lose their jobs in the restaurant industry amid the coronavirus pandemic. The NRAI represents over 5 lakh restaurants across India. And this is a matter of concern.
20 Lakh People Might Lose Jobs In Restaurant Industry
The restaurant industry in the country provides direct employment to 7.3 million Indians, and according to estimates, an equivalent number is also involved in ancillary activities as reported by YourStory. The President of NRAI, Anurag Katriar said “A modest 30 per cent job loss could mean over two million people directly employed in the sector, being rendered jobless. This may lead to larger societal problems”. Dushyant Singh, a Jaipur based entrepreneur who runs three restaurants, (OTH, Rustic by OTH and The LAMA) informed that the restaurant business involves a lot of overhead expenses which resemble a ‘dead elephant’ when business is at a standstill. “After the lockdown opens up, the first thing that every eatery would do to cut down on existing expenses is fire employees which would create a lot of unemployment in the sector. It would be difficult to start again with the same workforce,” stated Dushyant.
Your Favourite Restaurants Might Not Exist Post Lockdown
Sagar Daryani, Co-founder of Wow! Momo Foods, which operated through 345 outlets across India reveals to YourStory “It is possible you will never be able to visit many of your favourite restaurants in a post-COVID-19 world because they will not be able to recover from this and will shut shop.” While Wow Momo! has been profitable from the beginning, it’s currently suffering losses for the first time in 11 years due to the coronavirus pandemic. Sagar reveals that even though there have cash reserves for the next six to nine months, they have to tighten expenses through salary cuts and not paying rents during the lockdown. And even though several restaurants are partially functioning through deliveries and takeaways through foodtech platforms like Zomato and Swiggy, Sagar informs that business is down to one-tenth of what it was.
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The NRAI Seeks Financial Support From The Government
The NRAI has already made multiple representations to the government seeking financial support so restaurants can sustain themselves during this time. he President of NRAI, Anurag Katriar appeals “There is not much one can do under these unprecedented days. However, it must be clearly understood that despite our best intentions, we cannot support our expenses for long with our meagre resources. The aid must come now. Providing a ventilator post-death will be of no use. Add to this, the new social distancing norms; suddenly certain parts of the sector like banquets, night-clubs, and discotheques become hugely unviable and the seating capacities of restaurants also go down by half.” Zomato, Swiggy & Uber Eats Provides Contactless Food Delivery Service Amidst Coronavirus Outbreak
NRAI’s Anurag further adds “This will have a very massive and adverse impact on the investment environment into the sector. As bad as it may sound, many companies may never recover from this shock and will die a quiet death while the lockdown continues. 2020-2021 is already a washout.” Several restaurants are afraid that restaurants may not survive this pandemic. We do fear that our favourite restaurants may not exist post lockdown, and many Indians from the restaurant industry might lose their livelihoods, we do hope and pray that the government comes to their rescue and helps them during this dire time.