Resources To Provide Relief To Cash Strapped Restaurants During Covid Crisis
The hospitality industry has been one of the hardest-hit sectors by COVID-19. With governments imposing lockdown from mid-March in a desperate effort to contain the spread of the virus, many restaurant businesses are virtually bankrupt. The F&B industry stared at significant job losses amid a slump in the market due to the lockdown. While many restaurant operators pivoted their business models to focus on delivery during the dine-in prohibitions, pandemic-related changes continued to have longer-lasting effects. Many restaurants are operating on tight profit margins and do not have appropriate financial liquidity set aside. In the midst of this global health crisis, what relief measures and resources can restaurants in India seek that will prevent business shutdown?
Let’s find out the answers in this article.
Resources & Relief Measures For Restaurants To Rebuild The Business
As an industry, the proportion of fixed operating expenses in F&B is very high, making it a high-risk model. With the pandemic hitting revenues, there is a dire need for policy measures to support the F&B industry as it provides jobs to millions.
In a quest to keep the restaurant industry afloat amid the pandemic, the National Restaurant Association of India (NRAI) launched a ‘Rise For Restaurants’ platform to support the restaurants.
The industry body, which currently counts over 6 lakh restaurants in India as its members, claims that this platform is aimed at offering immediate relief to over 7 million staff employed in the F&B sector.
“The ‘Rise For Restaurants’ program is created by the industry for the industry. The NRAI has developed this program entirely keeping in mind the current plight of its members and the employees” says Gauri Devidayal, NRAI Managing Committee Member.
How Does The ‘Rise For Restaurants’ Program Work?
The main motto behind the ‘Rise for Restaurants’ program is to help provide much-needed cash flow to the restaurants that are starved for funds at the current moment. The program gives patrons a chance to send virtual cash to their preferred restaurants, in the form of a voucher that is redeemable for future use at the restaurant.
Customers can support restaurants by purchasing virtual cash worth Rs.1000 at a 25% discount, i.e., customers can buy a voucher worth Rs.1,000 for Rs.750. They can support their favorite restaurant from an extensive list of restaurants across India that is available on the NRAI forum and redeem the coupon in the future while paying dining bills at the respective restaurants. While purchasing the voucher, customers only have to pay Rs.250.
NRAI will contribute this amount towards paying the salaries and wages of restaurant employees. The remaining balance, i.e., Rs.500, can only be paid by the customer when they actually dine in at the restaurant. Therefore for the customers, a meal worth Rs.1,000 will cost them Rs.750 in total, and this way, they will be able to support restaurant employees as well.
The Virtual Cash facility will be valid for a period of six months from the date of purchase. Customers also get other benefits such as limitless voucher purchases, no minimum expenditure amount, blackout dates, or any conditions on voucher redemption. This mutually beneficial program not only ensures financial support for the restaurants’ employees, but it is also an excellent way for diners to avail discounts in the near future.
To buy a voucher and support this noble cause, click here
Some of the restaurants that are already live on ‘Rise for Restaurants’ are Barbeque Nation, Café Delhi Heights, Olive Bar & Kitchen, Carl’s Jr, The Beer Café, Desi Vibes, Farzi Café, Indigo Deli, Mahabelly, Mamagoto, Monkey Bar, Punjab Grill, Redmango, Social, The Big Chill Café, The Sassy Spoon, The Table, Zen, amongst many others.
Restaurants in India can readily utilize such resources and rebuild their businesses again!