Restaurant industry reeling as operators run at a loss despite deliveries being allowed

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The Covid-19 pandemic could put a final nail in the coffin for the traditional sit-down restaurant business model in South Africa, say industry members

The restaurant industry has decried a loss of income even when they can do food deliveries on lockdown level 4.The Covid-19 pandemic could put a final nail in the coffin for the traditional sit-down restaurant business model in SA, say industry members.

She said a group of restaurants was set to take the government to court in the battle to get back in business. “We are trying to be respectful of the restrictions but at the same time we are running at a complete loss and we have absolutely no support. It’s not right. The whole industry is crippled,” Alberts said.They said after more than 10 days of trading as a delivery-only business, eased lockdown has not necessarily softened the blow of the pandemic’s impact.

“As has been reported, deliveries have shown to settle at around 20% of normal turnover. Level 2 introduces takeaways and customer collections, but I doubt that it would have more than a 5% additional bottom-line impact.

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