Restaurateurs Request Mall Developers, landlords to Waive Rents
Restaurateurs Request Mall Developers, landlords to Waive Rents

The coronavirus crisis is impacting every aspect of our lives today, including where and how consumers are able to source food and engage with restaurants. Now more than ever, approaches such as delivery and curbside pickup are essential across restaurant segments to ensure your customers are aware that you are open for business and ready to serve.

Seeing this entire crisis, restaurants across country have requested landlords and mall owners to waive their rents and the common area maintenance charges till June or till the time lockdown lasts.

According to the restaurant owners the shutdown will remain for a month or two but their businesses will take at least some more months or a year to come back on track.  

Vipul Hirani, Co-Founder, Crafters shared, “Focusing 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.”

The restaurant industry is also expecting the government to come forward and help citing examples of what countries like the UK have done on the subject to the government.

Not only this, in India also large mall developers like Lodha and Prestige proactively waived off rents for the duration of the lockdown.

“We need a waive off for the next 2 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,” added Gudiya Chadha, Owner and Proprietor - All Elements who believed that restaurateurs 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,” she added.

Commenting on the same Subbaraju Penmatsa, Managing Director - Prost Brewpub, Bangalore and Hyderabad, shared, “Most of the F&B 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% 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.”

Thus, we can say that even if restaurants open after lockdown, restaurateurs will take at least few months to recover and roll-back.

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