BUSINESS MAVERICK: Restaurants and taverns collapse: Hospitality industry desperate to stave off disaster

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Despair is mounting as the collapse of South Africa’s restaurant and tavern industry begins to accelerate, shedding thousands of jobs along the way. The government appears remote and uninterested.

The Perseverance Tavern on Buitenkant Street in Cape Town, reportedly the oldest pub in the country, is the latest to close its doors as the lockdown claims another scalp in the hospitality industry.

This was a slap in the face for the National Liquor Traders Council, Liquor Traders Association of South Africa, Restaurant Association of South Africa and Business Leadership South Africa which on Tuesday had delivered a letter to President Cyril Ramaphosa requesting a meeting. South Africa has 34,500 licenced tavern owners, with more than 200,000 dependents, 10,000 shebeen permit holders, 2,700 independent liquor store owners employing 25,000 staff with about 70,000 dependents and around 7,000 restaurant owners with about 250,000 employees.

Among the requests is that the curfew is extended by an hour, that restricted alcohol sales are permitted and that the government resolve the delays in UIF and TERS payouts.Reduce VAT by 5% — and keep it that way until June 2021;Work with banks to reduce credit card and cash deposit fees for one year;Stay water and lights charges while restaurants were/are unable to trade;

“Just one year ago, the food and beverage industry contributed R6-billion monthly to the SA economy and employed more than 500,000 people,” says Harding.“If you look at Bree Street — it was the food street of Cape Town. There are five or six places on the brink of closing down. Others are closing on a daily basis. What is devastating is the impact on staff. We need to be able to open our doors, we need to be able to trade, we need to be able to sell alcohol.

 

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