NRAI urges shopping center owners to support the restaurant industry

The National Restaurant Association of India (NRAI) has urged mall owners to support the restaurant industry by completely waiving the cost of renting and maintaining common areas during the period when outlets are closed for periods of time. unlimited catering operations.

He also urged owners to switch to a “pure revenue sharing” rental structure for the period in which restaurants are only allowed to make deliveries, are only open for limited hours, and must follow occupancy guidelines. limited.

In its open letters to prominent shopping center owners, the industry body noted that the restaurant industry continues to fight an uphill battle for survival.

“For an industry already plagued by massive losses last year, the second pandemic wave is a blow that many will not be able to take unless actively supported by all stakeholders. Much of the industry has somehow managed to survive the first phase of foreclosure and succeeded through the collective efforts of all stakeholders and similar efforts are again needed to avoid further series of business deaths and job losses in the sector, ”he added.

Read also: Disruption of deliveries: restaurants forced to serve differently

Crippling blow

NRAI President Anurag Katriar said that while the two waves of the pandemic have dealt a crippling blow to the industry, the ongoing second wave is expected to hurt the industry even more in the long run due to weak and moderate feelings of consumers.

“With high fixed overheads, expected restrictions on hours of operation, revised social distancing standards and reduced capacity utilization, any drop in consumer confidence can be catastrophic for the industry. Surely we have an uphill battle ahead and the most powerful and effective way to combat this is to redefine our mutual relationships and our business model. I believe that for the survival of the F&B industry through this second wave, revenue sharing is a very fair model that will ensure that shopping centers do not lose out if we see an unexpected early increase in business volumes ” , he added.

Suggestions made

The industry body has called for a complete waiver of rentals and CAM until catering companies are unable to operate catering services. He also called on mall owners to adopt a pure revenue sharing rental structure for the period that restaurants are allowed to operate with restrictions.

Also Read: NRAI Introduces Food Delivery Platform Plans

Other suggested measures include, no minimum rent guaranteed for six months after the foreclosure type restrictions are lifted. “For stores with a longer occupancy history, this revenue share can also be linked to their sale as a percentage of their sale in the previous period. The CAM during this period must be maintained at 50% of the agreed rate, ”added the industry body.

The size of the catering industry is fixed at 4.25 lakh crore, providing an annual turnover of direct employment to more than 7 million people.

“NRAI will soon begin similar proactive dialogues with other stakeholders in the restaurant industry, such as aggregators, various state governments and the Union government,” the industry body added.


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Cecil N. Messick

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