It’s been a lockdown for us restauranteurs since March 20 and almost 6 months down the line and still no respite. Why the impartial behaviour towers this sector???
The Rs 1.5-lakh crore organised restaurant business employs nearly 40 lakh kitchen and restaurant workers, Once the restrictions are lifted, restaurants will have to rework their business models and overcome operational challenges. With consumers turning more health-conscious, hygiene protocols at restaurants and supply chain will need to improve materially, which will increase cost.
The dine-in segment accounts for 75% of the business within the organised sector, while online delivery/takeaway makes up the rest. Low utilisation levels are likely to prompt the industry to reduce fixed costs through outlet closure, job and salary cuts leading to mass unemployment.
The decline in restaurant revenues will, in turn, impact horticulture farmers, dairy producers, food processors, suppliers and logistics partners. Unorganised food producers, many of which have high exposure to the restaurants sector, will be hit the hardest due to a sharp decline in demand.