The Covid-19 pandemic has affected the food and hospitality industry very badly.
Particularly in Gurugram, the industry has been completely paralysed.
Several outlets have been shut across the city due to Covid-19 fears and restaurants have reported up to 60% fall in revenues.
As of now, more than 35 pubs, bars and restaurants in the city have closed down due to high rent and massively decreased footfall.
Most restaurants have asked their staff to leave, citing lack of funds. Movement of migrant laborers back home is another problem for the sector.
The district’s excise officials said a few months ago that the establishment owners had approached them, offering to surrender their licences, as they are finding it difficult to pay monthly rents and staff salaries. The eatery owners claim that in the current situation they have no other option, but to vacate their premises.
"If the lockdown continues for some more time and rents keep on accumulating, there will be no option but to exit those properties where landlords fail to give any leeway in rental payments. Also, there is no point in booking further losses for outlets that do not get decent footfalls.
Consumers are avoiding crowded places. We have seen a sales dip of 55-60% sequentially, over the past couple of months,” said Lalit Ahalawat, owner at SOI 7.
However, with the growing fear of exposing the staff to infection, many are shutting these down, too.
“35 of such restaurant owners have surrendered their licences so far due to high monthly rent and poor consumer footfall. Although many restaurants have started their operations, people are not interested in visiting restaurants,” said Aruna Singh, deputy excise and taxation officer (East zone).
Excise officials say that they have already waived off one-third of the licence fees, bringing it down to Rs 2 lakh.
There are a total of 327 restaurants, pubs and bars across the Gurugram district. Most of the outlets are situated on Golf Course Road, MG Road, Cyber Hub, Sector 29 and Palam Vihar.
The restaurants were given permission to resume their operations at 50% occupancy from June 8. Officials said the hotel association of Gurugram had written to the department in June requesting them to waive their liquor licence fee as they have been shut since March 25.