No economic package for the food industry?

Our Finance Minister had come up with economic packages for most of the sectors except for the hospitality and food industry. Unfortunately, the food industry has been taking the worst blow due to lockdown and especially the staff involved. The majority of the staff are migrants who left their homes to earn their living in a different city. Vadodara city alone provides employment in the restaurant business to nearly 20,000 people. If the food industry does not resume its operation then thousands of people will suffer due to varied reasons.

In such dire times, few restaurant owners have come together to voice their issues on behalf of the food industry and will be raising these disputes in a letter to the Chief Minister of Gujarat.

The business has taken a hit due to the lockdown and the lack of policies by the government. If any restaurant has to survive in the lockdown 4.0 and later on, it would require some efforts by firstly, the landlords, who could show some support on humanitarian grounds by translating their mere words into strong actions. The restaurant owners are appealing to their landlords to waive off their rent for at least the next six months and come to negotiations regarding the compensation for the same.

Secondly, the food industry is currently relying on take-aways and home deliveries but the food delivery services are still charging the same percentage (between 20-25%) for every order as pre-lockdown time and at the same time, the customers pay for the delivery charge too. It makes it really difficult for restaurants to function. They appeal to the logistics company to consider their situation and reduce the percentage charged so as they can keep their business running in these stressful times.

Mr. Jigar Desai, who is the owner of Pepperazi highlights one of the major hiccups of the situation, which is rebating the GST. The National Restaurant Association of India (NRAI) had already requested the government to take this matter into consideration and yet there has not been a single mention of it in the economic boosters for the food industry.

The fourth phase of the lockdown has witnessed the upliftment of bans and restrictions for other industries. The 8 a.m to 4 p.m. slot has particularly affected even the take-aways and deliveries of the eateries as their main working and business hour starts after 6 p.m onwards when they received more orders. Because of the time imposed on them, they barely get four hours to operate which is insufficient for them to generate any revenues and if they resume their work and start with deliveries, the landlord will demand rent. They also are appealing to the government to extend its operating timings so they can earn more and be able to employ their staff, pay for the delivery charges, GST, and the rent of the place.

Despite all these problems faced by the industry, many restaurants provided lodging and food for their staff during the lockdown. Yet neither the government nor the private companies nor the landlords with whom the restaurants had been associated for so long have been considerate to them.

The food industry is helpless and struggling to stay afloat and all they demand is help and support from the government and from those who earn profits out of it, it could help to a large extent. Mr. Desai sincerely urges the government to look into their plight and help them out so that the industry and the people associated with them do not have to suffer anymore.