Restaurants consider revenue-sharing model – Times of India

0
NEW DELHI: On Friday, restaurants and fast food chains wrote to mall owners and owners, urging them to shift to a pure revenue-sharing model in light of the increase in Omicron cases. This is the second time in two years that businesses operating on rent on main streets and malls have turned to landlords for waivers. Most restaurateurs said business was currently 40% of what it was in November, when the third wave restrictions had yet to be enforced.
“The Golden Weeks have been crucified because of the new wave. December and January are the backbone of a restaurant’s profitability,” said Sagar Daryani, CEO and co-founder of Wow! Momo.
A typical restaurant earns around 20% of its annual turnover in December and half of it in the last week of the year due to Christmas, New Years celebrations and a general feeling of feast among consumers, restaurant industry data showed. And while the delivery industry has supported food businesses during the pandemic, it is a low-margin, high-commission business and the on-site dining category has been badly affected, restaurateurs said.
“After being beaten by two waves, the industry was on the verge of recovery. What hurts us the most are the instinctive restrictions and curfews,” said Rahul Singh, founder of Beer Cafe.
The industry, with an annual turnover of Rs 4.25 lakh crore, is however hoping for a rapid recovery this time compared to the two previous waves which paralyzed the entire Indian hotel sector, resulting in closures and losses of ‘jobs. “The good thing about India is the high vaccination rate,” said Anurag Katriyar, founder and director of Indigo Hospitality. “If we take the case of South Africa, it took them about 10 weeks. We can expect to get back on track by the last week of February.”
Share.

Comments are closed.