Prime Minister Narendra Modi, last Tuesday, extended the lockdown till May 3, 2020, in a fight against Corona virus pandemic. Amid the spread of the virus and the lockdown to contain it, the hospitality industry has been the worst hit and a lot of damage is already done, businesses have come to a standstill and revenues have already hit rock bottom. With this new extension, besides the revenues of both the industry and the government, employment will get jeopardised. However all are hoping for a positive outcome in the end. Experts from the hospitality industry offer their views on the current and post-lockdown scenario:

In a statement, FHRAI says, "We support the PM’s decision to extend the lockdown until May 3 and stand by it as we understand that, the country's first priority is containing the spread of the virus any further. Simultaneously we must also keep in mind that with every necessary extension, reviving the industry will get that much more difficult, especially without any announcements for specific relief. The hospitality and tourism sectors account for 12.75 per cent of employment, 5.56 per cent of it is direct and 7.19 per cent indirect. As we speak, the Indian hospitality and tourism industry is staring at a potential job loss of around 38 million, which is 70 per cent of the total workforce, due to Covid-19.”

It added,  “According to the WTTC, as many as 75 million travel and tourism jobs are at risk worldwide, one in eight of them in India. It would be a long time for guests to trickle in, as confidence is at an all-time low. Now, only timely government intervention can give us a new lease of life. I would reiterate that as an industry, our hotels and restaurants are at the helm, assisting the authorities with the required rooms for doctors and healthcare workers and food for various sections so that no one goes unfed. I also appeal to the PM to kindly review the order on full wages to be paid to all workers during the lockdown as without revenue, it becomes impossible to maintain full salaries of workers. We assure the PM that as far as possible we will ensure no worker is retrenched.” 

FHRAI’s VP Gurbaxish Singh Kohli stated: “I also reiterate that without government intervention now, the industry may well be heading towards a collapse which will be extremely difficult to revive. We stand united with the government for eradicating the virus and together we will show the way to the world in achieving this.”

Meanwhile, stating that Covid-19 has impacted hotel & restaurant industry in a big way, Gaurav Shetty, MD, MRG Group, said, "My personal take on this would be that the hotel and travel industry has suffered the most from Corona virus spread. Due to the shutting down of airports, travel has completely stopped while the people who were currently travelling returned to their home countries gradually. As currently, the occupancy levels have dropped, many hotels are forced to temporarily shut down and staff has been sent on unpaid leave till the situation gets better.”

Shetty stated, “Different countries are handling it in their own way. In some places, owners have to keep paying their staff regardless of business situation, while in others, they can legally reduce the salaries, lay off staff or send them on unpaid leave."

 

Explaining further, he stated, "It's definitely a huge loss for hotel owners but it's a much bigger loss for people who live from paycheck to paycheck. I just hope & pray everything just turns out to be completely fine by the end of the lockdown so that we can move on to serve all our guests again in the same pleasant atmosphere. As of now, I would only suggest people to completely avoid going outdoors and serve the nation by just sitting at the comfort of their own houses."

On a positive note, Sneh Jain, co-founder and MD, The Baker's Dozen said, "I agree with Prime Minister Narendra Modi and the states on the assessment for the extension of the lockdown till May 3, 2020. According to me, we have one chance to control the situation by opting for a hard path and taking strict decisions for the betterment of the country and its citizens. This will be productive for everyone and will lead to a positive outcome rather than to struggle for a very long and difficult fight. Also, the decision to gradually start checking all the areas from April 20 for the cases and incidences that are under control will also help boosting the economy. Overall I think it's a very balanced approach, but top priority should be to control the virus. I request everyone to stay home and stay safe."

Sharing his views, Vipul Hirani, co-founder, Crafters Taphouse, said: "The announcement made by PM is just a continuation of the steps that CM Uddhav Thackereyji had already announced on April 11. These steps are in the right direction. The entire hospitality industry is looking forward to concrete steps from the concerned authorities with regards to providing relief to the sector post removal of the lockdown."

  

Hirani added, "I expect the opening of the restaurants to be based on the condition of social distancing norms to be followed even if the threat has subsided considerably and hence, the hospitality sector is expected to be under considerable pressure even after the lockdown is removed. In such a scenario if relief is not provided to the sector, it is likely that a large number of establishments will have to shut shop which will lead to a large number of job losses."

 

Stressing on their social responsibility, Subbaraju Penmatsa, MD, Prost Brewpub (Bangalore and Hyderabad), stated, "As PM Modi declares that Covid -19 lockdown has been extended till May 3, 2020, as a socially responsible brand we support the initiative. The entire country has united to control the pandemic situation and the police officials, doctors, sanitisation departments and emergency departments are standing as the main pillars of the country. The seven things that were told by PM Modi keep us safe, informative and responsible. We hope the situation will get controlled at the earliest."

 

While requesting the government, Penmatsa said, "Extend financial support to the F&B industry because 90% of the brands are in huge losses. If the government agrees for online delivery of craft beers till the lockdown is closed that would help the craft beer industry to sustain in this crisis period."

 

Expressing concern over cash flow and rent, Senil Shah, founder, New York Burrito Company, said, "This lockdown will have a lot of impact. People’s cash flow will be a big issue. I think pretty much all the restaurateurs are short on funds. In the restaurant business, 80% cost is rental and salary. I believe a lot of people will lose their jobs in the hospitality industry. Because I believe the lockdown won’t end till May end. We haven’t let anyone go. We believe to be with them in this difficult time. Rental - still many of the landlords are not agreeing for the rental-free period. That might be a bigger issue. Overall I believe 20% of restaurants will be out of business when they start in May/June."

 

Emphasising on quarantine, Rahul Bajaj, director, and conceptualiser, Out Of The Blue and Deli By The Blue, said, "The decision of PM Narendra Modi to extend the lockdown until May 3, 2020, was a must to curb the spread of Covid-19 as it is increasing at an uncontrollable pace. To maintain the utmost care, we have made some of our staff members to stay and are quarantined at our Hotel Le Sutra. The basic salaries of all the staff members are paid in full and no one would be losing their jobs in these tough times.”

Bajaj added, “We are keeping the staff well-equipped with food and basic food supply necessities like pulses and rice for their families as well. We are also distributing food to the watchmen, cleaners and security guards around Out Of The Blue. We have also been paying for the education of villagers living around Out Of The Blue and near Union Park for many years now and are supplying food to the people who can’t afford it in the current situation."

 

Considering the immunity aspect, he stated, "We have introduced healthy and affordable four-course immunity booster combo meals for customers to boost their immunity and safeguard themselves from the pandemic. In this crisis situation, we have to make sure we help as many people as we can in any way possible as per our affordability as this time is not about making money and generating profits.”