The National Restaurant Association of India ( NRAI) has written an open letter to landlords in the foods and beverages space requesting them to waive rents up to June or until the time the lockdown continues, whichever is later.
“While this shutdown may continue for a month or two, we will take many more months post that to get back on our feet…and we will not be able to sail through this period smoothly without your support,” NRAI Secretary-General Prakul Kumar wrote in the letter. ET has reviewed a copy of the same.
The association has also asked for “no minimum guaranteed” rents for six months after that and proposed to work on a pure revenue share model equivalent to 50% of the agreed terms up to a maximum of 10% of monthly revenues.
This comes days after the lobby which represents over 5,00,000 restaurants sought deferment of all statutory dues, including goods and service tax, and urgent settlement of claims by both public and private sector insurance companies. In a letter to Finance Minister Nirmala Sitharaman earlier this week, the industry body has asked for immediate relief on various state and central levies and job cover for employees in the sector.
“We are seeking these reliefs just for ensuring that businesses don’t die an instant death… A global recession due to the Covid-19 situation is already being predicted and that’s not going to make it easier for us, whether we are property owners or business operators,” the letter said.
Restaurants that ET spoke to said they will default on payments for the next month as the working capital issues persist. In the UK, Burger King said it will not be paying for the week as they prepare to cover staff wages until government support begins to flow.
“Due to the outbreak of Covid-19 and the subsequent lockdown announced by the government, our industry is going through an unprecedented crisis that threatens our very existence. We are fighting a very grim battle for our survival,” Kumar said.
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