Cape Town - The continued closing of restaurants, coffee shops and bars could be the death knell for thousands already buckling under the current level 4 lockdown regulations.
On Sunday, President Cyril Ramaphosa reiterated that the consumption of food and alcohol in restaurants, bars, shebeens and taverns remained prohibited.
Restaurant Association of SA (Rasa) chief executive Wendy Alberts said: “It’s a catastrophe because the restaurants in the country are already in a state and the conversations we are currently having are about business closures and liquidations.
"Government needs to provide for restaurants. What we don’t understand is why restaurants have to be restricted because the public is smart enough to make up their own mind to see whether an establishment puts their lives at risk.” Alberts said the impact this would have on restaurants would amount to thousands of job losses.
“I commend the government for acknowledging we are the largest employers, but we are talking about over 80 000 people of which 80% are currently unemployed. It’s time the government has a frank conversation with us and we have a consultation.”
Addressing the nation earlier this month, Ramaphosa said the government was preparing for a further easing of the lockdown and a gradual opening of the economy from the current level.
Currently, the regulations allow only for the delivery of food and only during daytime non-curfew hours, from 9am to 7pm.
Owner of JARRYDS Eatery in Sea Point Jarryd Segal said his establishment has been forced to serve delivery coffees only.
“As owners of a number of small businesses in the restaurant, bar and food supply space, it goes without saying that Covid-19 and the lockdown has been devastating for the industry.
"We understand that everyone is seriously affected.
"But the nature of the industry means that most businesses in this space fall in higher-risk categories,” he said. Segal said despite being provided with the option for delivery only it still taints their business.
“Even with prospects of takeaway and now collections, it’s very difficult for establishments that rely on their locations, ambience and experience to be profitable through this alone. It’s an industry of tight margins, lots of blood, sweat and immense passion from owners,” he said.
Owner of Craft Burgers Russell Shapiro, who closed his shop a week before the lockdown started because of staff travelling in taxis, said he has been waiting for relief.
“There is no way anyone can make money. I am extremely frustrated because I have been fighting for UIF payment for my staff.
"Small guys like me have been left in the lurch. Small businesses cannot survive selling just coffee.
"Restaurants are not going to open and I doubt it will open this year. It’s stressful and we are waiting to hear whether we can do takeaway drive- by’s and collections,” he said.
The Spur franchise has been the hardest hit by the lockdown over the past few months. In a statement the group said: “All restaurants in South Africa were closed from the start of the national lockdown on March 27 until May 1. As a restaurant franchisor, the group's income comprises primarily franchise fee and related income which is linked to franchised restaurants sales. The group did not earn any material income for this period.”
The group said that it granted franchisees discounts of 20% on franchise fees and 25% on marketing fees for the period March 1 to 15, and waived fees for the remainder of the month. There was no trading last month. By May 10, 155 of the 559 restaurants had opened for delivery-only services.
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