BackRestaurants do not see immediate recovery
India’s organized dine-in restaurants are on course for a 40-50% cut in revenue in FY21 due to the disruptions from covid-19, Crisil Research said in a recent note
PremiumWhile restaurants await clarity from states on the standard operating procedure (SOP) for social distancing, owners of high-end eateries said the 9pm-5am curfew, curbs on serving alcohol and limited seating arrangements will delay revenue generation and a revival for the industry.
On Saturday, the government said restaurants outside containment zones can offer dine-in services from 8 June. The Maharashtra government, however, announced on Sunday that restaurants and other hospitality services shall remain prohibited in the state.
Restaurant owners were dismayed by the lack of clarity and expect a slow recovery in business due to social distancing norms and restricted hours, while the fear of contracting covid could keep diners away.
Chef Manish Mehrotra, who runs high-end restaurant Indian Accent in Delhi’s Lodhi Hotel, and a casual dining place Comorin in Gurugram, sounded disappointed. “We are still waiting for the state governments to give some clarity on how to proceed. If there’s a night curfew beginning at 9pm, we will not be open for dinner. Plus, if we are allowed to allow only a limited number of people, will our business be at all viable?". The biggest blow could come from the prohibition to serve liquor. “Even that is a grey area. Bars are shut. Are restaurants allo-wed to serve liquor?" he said.
Nakul Anand, chief executive, Riga Foods, which operates Italian restaurant chain Diva, agreed: “Clarity on serving liquor and social distancing norms is required before we can announce re-opening." Speciality Restaurants, which owns fine dining brands such as Oh! Calcutta, Mainland China, Sigree and Sweet Bengal, is also unlikely to resume operations, as states are yet to take a call.
Founder and chairman Anjan Chatterjee said: “Kolkata lockdown has already been extended till 15 June. Maharashtra is not even taking restaurants into consideration. I don’t see this going anywhere for now." He said restaurants depend a lot on migrant workers who have been returning to their homes especially after the resumption of train services. Restaurants are also looking to re-negotiate rental agreements. Most of them say they will wait and open only those outlets where they have revenue share pacts and no minimum rent guarantees to be paid.
India’s organized dine-in restaurants are on course for a 40-50% cut in revenue in FY21 due to the disruptions from covid-19, Crisil Research said in a recent note.
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