Struggling Indian restaurants

Covid-19 will hit the restaurant industry the most

Restaurants, cafes, and other eateries may close down as demands slump. Indian restaurant industry is the third largest employer in India.

There is an drop of 30% to 35% in sales of the restaurants. Restaurants in malls have experienced the maximum impact. Delivery segment is able to withhold for now.

Rahul Singh, founder of Beer Cafe chain and ex-president of National Restaurant Association of India said, “Indian food service industry is the largest service sector in India after retail and insurance and is 20 times of the film industry, 4.7 times of hotels and 1.5 times of the pharmaceutical sector.”

NRAI will seek relief on rents, energy costs, overall credit limits and taxation. It is expecting the landlords to either subsidise the rent or put moratorium. Restaurant owners also want deferment of principal, interest and GST, reduction in working capital interest rates, increase in working capital credit limits and no license charges .