Wanna get our awesome news?

Subscribe to our newsletter!


Actually we won’t spam you and keep your personal data secure

As the voice of the Indian restaurant industry, we represent the interests of 500000+ restaurants & an industry valued @ USD 4 billion. Whether a chain or independent restaurant, the NRAI is here to help every step of the way. Join us!


Out of business, Delhi eateries get rent shove



NEW DELHI: The second wave of the spread of the novel coronavirus has jolted the restaurant industry. With staff and diners battling Covid-19, imposition of restrictions by the government and almost no orders, many outlets have shut operations rather than looking at surviving merely on deliveries.

However, some outlets have started receiving rent reminders from malls and standalone property owners for the month of may.

With almost no business for a month and the near future also looking bleak, National Restaurant Association of India (NRAI) has written to over 138 malls across 51 cities and an open letter to property owners seeking rent waiver, opting for the revenue-sharing model going forward and no fixed rent guarantee.

In another letter to Prime Minister Narendra Modi, NRAI requested for prioritising hospitality workers just like healthcare and frontline workers for vaccination. The letter stated that since a majority of workers were aged between 18-44 and the nature of their work entailed interacting with people, their safety would give confidence to diners. NRAI also added that restaurants would be willing to meet the vaccination costs of their employees.

Emphasising that the resources of restaurants had depleted, NRAI said the F&B industry needed all possible support to stay afloat. Some of the main demands put forth by NRAI included complete waiver of rentals and common area maintenance (CAM) charges till the time businesses were shut for unrestricted dine-in. It also sought revenue sharing till operations were restricted, which means only having permission to deliver food, limited hours of operations or limited capacity utilisation. Another important demand was no minimum guaranteed rent for six months.

NRAI president Anurag Katriar said restaurants would need active assistance from all stakeholders to survive, just like last year. “For the survival of the F&B industry through this second wave, revenue sharing is a fair model that will ensure that malls don’t lose out if we see an unexpected early surge in business volume. I’m fairly certain that as long-standing business partners of ours, the property owners will once again extend their support during this unprecedented crisis,” he added.

Echoing the sentiment, Rohit Aggarwal, director, Lite Bite Foods, which has multiple outlets of Punjab Grill, Zambar and YouMee across the country, said negotiations with property owners would start now and they would put forth their demands of no minimum rent guarantee, reduced revenue share and CAM. He added, “A lot of our business is now dependent upon deliveries. We are already paying commission to the aggregators. We cannot afford hefty rentals.”

Terming the next 12 months as crucial for the restaurant industry, Vishal Anand, founder, Moonshine Food Ventures that has outlets Cafe Staywoke and Saga, said survival would depend on there not being any more coronavirus waves like the current one. “With the support of property owners, restaurants can hope to recover to pre Covid times in 2-3 years. As of now, the impact on the industry has been catastrophic,” he added.

Recommended for you