DURBAN - The Franchise Association of South Africa (Fasa) has warned the industry was set for massive job losses as it struggled with the coronavirus (Covid-19) outbreak that has led to many franchises closing doors as a result of the intermittent lockdowns imposed by the government since March.
The group said the industry could see 75 000 jobs lost as trading had ground to halt in the sector
Fasa executive director Vera Valasis said the government needed to review the lockdown regulations to treat the take-out and fast food industry to be included under essential services. Valasis said the contactless delivery of take-out and fast food meals was ideal for the phased opening of the industry.
“While one understands that the government decided to take very strict measures to clamp down on the spread of the virus, we believe not having an alternative people are being driven out of their homes to buy food, so there may be an even greater risk in not allowing contactless food delivery to continue offering cooked food to consumers,” Valasis said.
The franchise industry generates R734 billion to the economy, according to the Sanlam Franchise Survey conducted in 2019 and employs close to 500000 people in its 48000 franchised outlets and 824 franchise companies and contributes just under 14percent to the country’s gross domestic product.
Valasis said since the implementation of the Covid-19 measures, around 94percent of the industry had ceased to operate.
“This has had a devastating impact on the industry and it is feared that unless more financial aid is provided some 15percent or 75000 jobs could be lost in the industry,” Valasis said.
The group said it had written to Trade and Industry Minister Ebrahim Patel to reconsider the lockdown measures that apply to take-out and fast food sectors.
Valasis said delivery services had been operating during the pandemic.
She said the opening of the delivery of prepared take-out or fast food in addition to their other essential supply deliveries made economic sense and could save the industry.
“This would go a long way to minimise job losses and keep the franchise workforce earning much-needed income to support their families,” she said.
The association said it had already taken steps to augment their preparation procedures in order to deliver contactless food orders to their customers before the imposition of the lockdown regulations.
However, it said their hopes were dashed when the regulations were published, preventing them from trading.
“We urge for the amendment to the regulations to urgently allow for contactless delivery of take-out and fast food meals,” the industry said.