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Restaurant industry amidst coronavirus crisis-COVID-19

Restaurant industry amidst coronavirus crisis-

Over two million (20 lakh) people directly employed within the sector could also be rendered jobless, consistent with the National Restaurant Association of India (NRAI) that represents over 500,000 restaurants across the country.

The restaurant industry provides direct employment to 7.3 million Indians, and it’s estimated that the same number are engaged in ancillary activities. “A modest 30 percent job loss could mean over two million people directly employed within the sector, being rendered jobless. this might cause larger societal problems

Loss of revenue and cost-cutting “After the lockdown exposes, the primary thing that each eatery would do to chop down on existing expenses is fire employees which might create tons of unemployment within the sector. it might be difficult to start out again with an equivalent workforce

The overall size of the food industry is pegged at around Rs 4.25 lakh crore, with the formal or organized sector accounting for Rs 1.75 lakh crore of this. “If we just check out the organized sector, our daily revenue loss is within the region of Rs 480 crore, and if we further assume that only a modest 40 percent of our revenues go towards fixed expenses, our losses stand at roughly Rs 192 crore each day,” consistent with Anurag. Also the CEO at deGustibus, which operates eight restaurants including INDIGO, INDIGO DELI, D:OH! across 27 outlets, Anurag believes that the restaurant sector is going to be one among the last to urge permissions to restart. “Let us say we get permission after three months, then we are watching a revenue loss of Rs 43,150 crore and business/cash loss of Rs 17,260 crore. These numbers could cripple a really solvent sector and ours is barely solvent. No company within the sector will begin unscathed within the aftermath of this lockdown,” he warns. he’s among several other restaurateurs disappointed at the government’s inaction to assist the world. “With each passing day of lockdown and no support coming our way, our ability to recover and remain alive gets further diminished.

How can the govt, the govt can help the world in three stages. At the primary stage, the govt must immediately use the coffers of ESIC (Employees’ State Insurance Corporation) or unclaimed deposits of PF (Provident Fund) or the other Social Security program to hide the salaries for the world. It must also make a public announcement that this example automatically allows the invocation of the act of God (a common clause in contracts that essentially frees both parties from liability or obligation when an unprecedented event or circumstance beyond the control of the parties occurs), for all contracts and their resultant liabilities. Tenure of all operating and trade licenses must even be extended for an additional year with none additional fee.

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