AgenciesMumbai: One of the worst-hit industries by the pandemic, restaurants are bracing for another shock as the Maharashtra government
announced several restrictions to control the second wave of Covid-19 cases in the state.
Restaurants in the state were operating in a restricted manner due to the night curfew, which allowed them to function between 7:00 am and 8:00 pm but offer delivery service until much later. According to the latest Maharashtra lockdown guidelines, restaurants can no longer provide dine-in or delivery services after 8:00 pm.
“Most of the lunchtime deliveries used to take place for offices, which have been shut. Very few people order lunch at home. Households order dinner, and at that time, we are shut. It is not a curfew or a restricted operation. It is as good as shut operations for us,” said Anurag Katriar, president of the National Restaurant Association of India. “You are virtually rendering everyone jobless, and you expect owners to pay for their (employees) salaries, rentals, taxes, and license fee to the government. I don't think that's fair.”
The impact will be felt by food delivery companies led by Swiggy and Zomato, which have a total of 55,000 delivery personnel in Maharashtra. Delivery agents are mandated to carry a negative RT-PCR test that would be valid for 15 days and must be vaccinated as soon as possible, according to the latest guidelines.
Zomato did not comment on specifics of how Maharashtra’s covid restrictions would impact its business and delivery fleet. A spokesperson said that the company would be covering the cost of vaccination and RT-PCR test for their delivery executives. "Safety remains our top priority, and therefore, we are working with the authorities to ensure we continue to safely deliver food to those in need," the spokesperson said.
While Swiggy did not respond to ET's queries on how Maharashtra covid restrictions would impact its business and delivery fleet, it had announced last week that it would cover the vaccination cost of its 200,000 delivery partners.
As of now, only individuals over the age of 45 can be vaccinated in India.
According to sources, both Swiggy and Zomato are in close consultation with authorities to understand the guidelines as certain aspects around its implementation are unclear.
The new policy will be a big blow to an already struggling industry, several restaurant chain owners told ET. Sameer Seth, partner at Hunger Inc, which operates Bombay Canteen and O Pedro among other restaurants, said they would continue to operate to survive.
“With minimal revenue and cash flows, this is catastrophic,” Seth said.
The company has outsourced its delivery and said that with dine-in out of the picture and delivery limited to 8:00 pm, restaurants’ revenue would be adversely affected. “How food delivery is no longer an essential service where it was four months ago and stopping it at 8:00 pm… I'm not sure what the thinking is behind that.”
Even though the RT-PCR tests are priced at almost Rs 500-800 each, the cost of testing the delivery partners will be far lower compared to the loss the business will incur, Seth said.
“Specific support like the implementation of a simple system of GST set-off by the government, which was unfortunately rolled back a few years ago, would give a good boost and impetus to help come out of this crisis. Besides this, support from landlords on reducing license fees and rents would also be of great help in getting through this crisis,” said Karan Kapur, executive director of K Hospitality Corp that owns Copper Chimney, The Irish House and Bombay Brasserie, among others.
Restaurants in the state were operating in a restricted manner due to the night curfew, which allowed them to function between 7:00 am and 8:00 pm but offer delivery service until much later. According to the latest Maharashtra lockdown guidelines, restaurants can no longer provide dine-in or delivery services after 8:00 pm.
“Most of the lunchtime deliveries used to take place for offices, which have been shut. Very few people order lunch at home. Households order dinner, and at that time, we are shut. It is not a curfew or a restricted operation. It is as good as shut operations for us,” said Anurag Katriar, president of the National Restaurant Association of India. “You are virtually rendering everyone jobless, and you expect owners to pay for their (employees) salaries, rentals, taxes, and license fee to the government. I don't think that's fair.”
Dear Maharashtra Govt,Please shut down the F&B biz in the state completely! This slow death is more excruciating.… https://t.co/ypFVWZzwwu
— Anurag Katriar (@KingKatriar) 1617549950000The impact will be felt by food delivery companies led by Swiggy and Zomato, which have a total of 55,000 delivery personnel in Maharashtra. Delivery agents are mandated to carry a negative RT-PCR test that would be valid for 15 days and must be vaccinated as soon as possible, according to the latest guidelines.
Zomato did not comment on specifics of how Maharashtra’s covid restrictions would impact its business and delivery fleet. A spokesperson said that the company would be covering the cost of vaccination and RT-PCR test for their delivery executives. "Safety remains our top priority, and therefore, we are working with the authorities to ensure we continue to safely deliver food to those in need," the spokesperson said.
While Swiggy did not respond to ET's queries on how Maharashtra covid restrictions would impact its business and delivery fleet, it had announced last week that it would cover the vaccination cost of its 200,000 delivery partners.
As of now, only individuals over the age of 45 can be vaccinated in India.
According to sources, both Swiggy and Zomato are in close consultation with authorities to understand the guidelines as certain aspects around its implementation are unclear.
The new policy will be a big blow to an already struggling industry, several restaurant chain owners told ET. Sameer Seth, partner at Hunger Inc, which operates Bombay Canteen and O Pedro among other restaurants, said they would continue to operate to survive.
“With minimal revenue and cash flows, this is catastrophic,” Seth said.
The company has outsourced its delivery and said that with dine-in out of the picture and delivery limited to 8:00 pm, restaurants’ revenue would be adversely affected. “How food delivery is no longer an essential service where it was four months ago and stopping it at 8:00 pm… I'm not sure what the thinking is behind that.”
Even though the RT-PCR tests are priced at almost Rs 500-800 each, the cost of testing the delivery partners will be far lower compared to the loss the business will incur, Seth said.
“Specific support like the implementation of a simple system of GST set-off by the government, which was unfortunately rolled back a few years ago, would give a good boost and impetus to help come out of this crisis. Besides this, support from landlords on reducing license fees and rents would also be of great help in getting through this crisis,” said Karan Kapur, executive director of K Hospitality Corp that owns Copper Chimney, The Irish House and Bombay Brasserie, among others.