In light of the strain that the food and beverage industry is undergoing due to the global pandemic and quarantine declaration, several food and beverage industry bigwigs had put up a petition to the National Restaurant Association of India (NRAI) requesting that their rents and maintenance charges be waived off till normalcy is returned. Following are the responses from various food and beverage business owners in this regard.

Vipul Hirani, co-founder, Crafters, said, “I am grateful to the NRAI for taking this step proactively on the matter. NRAI's discussion with the Maharashtra State Excise has already borne fruit in terms of the relief provided with respect to the licence fee payment. Focussing on the discussions with landlords, most of the landlords will be sensible when it comes to taking care of their tenants after the lockdown is over.” 

According to me, most brands will have to discuss with their landlords on a case by case basis as everyone will have their opinions and points to be talked upon. Also, not forgetting the landlord's opinion as even they will have their own incomes to take care of.

In the coming few days, I expect the NRAI to reach out to the Central government in order to come up with solutions with the landlords in order to save the restaurant industry and to ensure its smooth functioning post the Covid-19 effect. 

This discussion can be more effective if NRAI provides examples of what countries like the UK have done on the subject to the government.

Sneh Jain, co-founder and MD, The Baker's Dozen, said, “The urge made by NRAI to the landlords in the food and beverage and restaurant industry will be very helpful to the founders and the owners of many brands and will be beneficial for the industry as well.” 

This will be a concrete step in helping navigate this crisis and will help in better functioning of the industry. This will also help owners of different brands in ensuring that the layoffs are delayed or avoided, as this will help them to utilise the same amount of money to pay the staff salaries and for vendor payments. 

This will also significantly help them to take care of their normal expenses without compromising on any aspect of the functioning.

 

Gudiya Chadha, owner and proprietor, All Elements, stated, “We need a waive off for the next two months as all staff has gone to villages, people with low earning won't be spending of restaurants and luxuries, hoarding of essentials food stock has been an exercise in each home so people will restrict to eat out.” 

“We all will need to begin from ground level and yet pay salaries, electricity and basic fix cost. We need support from the government that entrepreneurs can't be giving from both salaries and rent.” 

Senil Shah, founder of New York Burrito Company, said, “I believe the restaurants will start after May 15 and that also with 30-40 per cent of sales and it may also take some time to gain customer's confidence again. Honestly, the confidence will come once the medicine is found. “

Some 50 per cent of charges on common area maintenance are important in malls because this is how fewer people will walk in as they are the most crowded places, 10 per cent revenue on rental places is a perfect way to go forward also 15 per cent is fine for restaurants to come in good shape.

Subbaraju Penmatsa, MD, Prost Brewpub, Bangalore and Hyderabad, said, “'At this point, the entire country is facing a financial crisis and the steps taken by NRAI are highly acceptable and appreciable.”

“Most of the food and beverage brands would see a downfall for 3-4months because of the panic situation India is facing right now. If the landlords reduce the rents to 50 per cent for the next six months or encourage a fixed amount that doesn't distract the P&L of the brands, it will help the entire industry to sustain for a longer period of time.” 

Reducing the common maintenance charge will help brands to have the better working capital to run the show.  The Government of India should consider helping brands and landlords to overcome this tough phase and lockdown once things are back to normal.