Level 4: Restaurants impacted by lockdown regulations

Restaurants impacted by regulations. Picture: Meruyert Gonullu from Pexels

Restaurants impacted by regulations. Picture: Meruyert Gonullu from Pexels

Published Jun 28, 2021

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The food and beverage industry has been one of the hardest hit during this Covid-19 pandemic.

Restaurants and the hospitality industry have been forced to change their business models in order to trade and have a viable industry in the future.

Hundreds of restaurants have closed down worldwide due to the lockdowns that were necessary to curb infections and for governments to try to fight the virus.

While some did pivot to takeaways and deliveries, some had to close because the overheads were not worth staying in business.

The South African restaurant business is still reeling over last year's lockdowns, which saw alcohol sales banned, on-site dining banned and the number of patrons that can be served lowered.

For the first five weeks of the level 5 lockdown of 2020, restaurants and bars were not able to open for any kind of service.

This has led to the industry not being able to generate revenue, particularly in the first five weeks of hard lockdown.

Scores of restaurants closed down for good, including some iconic eateries, such as La Tête, Restaurant Mosaic, Café 1999 and The Stack.

The Federated Hospitality Association of SA (Fedhasa) said statistics released by Statistics SA regarding insolvencies and liquidations in the accommodation, food and beverage sector indicated how financially damaged the sector was.

The total number of liquidations increased by 55.3% in the first four months of 2021 compared with the first four months of 2020.

The industry was starting pick up again, after the launch of new restaurants like Tang and Konka in Joburg; Dante and AuthentiQ in Durban and Siba The Restaurant and The Melting Pot in Cape Town.

However, the news of South Africa going back to level 4 will undoubtedly once again impact the food and beverage industry, due to regulations not allowing on-site consumption and sales of alcohol.

The restaurant industry was already wary about the country moving to Level 3, two weeks ago, with the chief executive of the Restaurant Association of South Africa (Rasa), Wendy Alberts, speaking to IOL about the industry's fears about not surviving further restrictions.

Alberts said the association was aware that the government was discussing how to manage the third wave of the pandemic.

“The restaurant industry has been the industry most impacted at every turn and at every level.

“Hardship has been at the forefront for all our businesses and staff. We are doing everything we can to save jobs.

“The restaurant industry will not survive if any restrictions are (imposed) on us.

“We simply cannot tolerate any type of negative impact or face another liquor ban or any type of restriction as we move into our most difficult trading months," she said.

On Rasa's Facebook group, restaurateurs voiced their frustrations at the restrictions that have been imposed on the industry.

Celebrity chef, cook book author and award winning TV personality, Lesego Semenya, used his Twitter account to highlight how dire the situation was for the industry.

"Let me break it down a little. Those restaurants that do sell takeaways do so with a staff complement that is about 30% of what it normally is.

“One well-known chef I was speaking to who owns five restaurants let 50% of his staff go and then the remaining ones work shifts.

“When you sit down at a restaurant it isn't only about food.

“A fine dining restaurant actually makes its money from the wine list and beverages.

“It's why it was the restaurant industry body that put up one of the biggest fights about the booze ban."

Some restaurants have responded by sharing the meals they are able to deliver, while others have chosen to not trade for the next two weeks until the president addresses the country about the next steps that the government will be taking in fighting Covid-19.

Related Topics:

Covid-19Lockdown