Some eateries open, but it’s an extended lockdown for many

Some eateries open, but it’s an extended lockdown for many

Sudipta.Sengupta@timesgroup.com

Hyderabad:09.06.2020

It could be a while before you can enjoy a meal at your favourite restaurant in town. While it’s all clear from the government, many eateries may keep their shutters down for another few months — some as late as Dasara. Limited seating, night-time restrictions, apprehensive patrons coupled with extremely high lease rates has made it impossible for many to resume operations.

On an average, the lease rate in the Banjara Hills-Jubilee Hills-Hi-Tec City belt — city’s hub for restaurants and clubs — ranges between Rs 5 lakh and Rs 7 lakh a month. For smaller outlets, either in a commercial block or mall, it is anyw here upwards of Rs 2 lakh. To add to that are running costs, salaries of staff and now the extra expenditure on sanitisation.

“We haven’t set an opening date yet, but in all probability it’ll be around Dasara in October,” said Rashi Agarwal, managing director, master franchise owner of Pita Pit Restaurants, which has two outlets — in Sarath City Mall and Jubilee Hills Road No 36.

“With all the overheads and limited footfall, it doesn’t make any economic sense,” she said. Agarwal is now trying to negotiate a revenue sharing model — in the 75:25 ratio — with the property owner to sustain the business.

A restaurant with empty chairs marked out in city on Monday

Up to 40% restaurants likely to shut down in Hyd

So are several others in the industry who are worried that they might have to otherwise shut shop. Industry insiders that TOI spoke to said that at least 40% of the city’s restaurants are likely to close down for good due to lockdown losses.

“It’s a tough time for the hospitality sector. Though we are not planning to shut, we are also not sure when we will open. With Covid-19 cases increasing everyday, it’s going to be very long before business returns to usual for us,” said Ketan Agarwal, co-founder of Chubby Cho in Jubilee Hills that also runs Fat Pigeon (the bar). He was willing to wait at least another month before taking a call on pulling his shutters up.

Mohammed Shaji Chand too is willing to wait — weeks or even months — till he is allowed late-night operations. That’s because regulars at his popular 6,000 square feet eatery in Gachibowli, Arabian Corner, prefer to step in only post 10pm.

“We don’t serve alcohol, but as my place is partly open air, people like coming here only in the evening. My lunch window is only for two hours... that’s not enough to make profits. Opening now means suffering further losses,” the owner said.

Despite outlets opening after a 77-day hiatus, not much footfall was seen at most shops across the city.