Chinese restaurants starved for cash as people stay home
BEIJING: It is lunch time in Beijing, but the only diner in Cindy’s Cafe is an employee having a staff meal – it has been closed for more than three weeks as China battles a deadly virus epidemic.
Restaurants are taking a huge hit as many people across the country of 1.4 billion have been either under some form of quarantine or are reluctant to venture outside since late January over fears of contagion.
At Cindy’s Cafe in Beijing’s Roosevelt Plaza, dine-in revenue has fallen to zero, and relying on deliveries hardly makes up the shortfall, said manager Cai Yaoyang.
“On a good day in the past, we could earn over 1,000 yuan (RM596) a day from deliveries,” Cai told AFP. “Now, it’s just around 200 to 300 yuan a day. The impact is especially big.”
He estimates losses to the company, which has more than 10 outlets in China, could be “at least a few million (yuan)” given rent and unused stock from the unexpected Lunar New Year closures.
“If there is no business, staff may be asked to take more days off,” said Cai.
Many restaurants have suspended dine-ins to help curb the spread of the virus, but eateries that have resumed operations remain largely empty, with people still encouraged to stay home to avoid infections.
The new coronavirus has killed more than 2,400 in China and infected nearly 77,000.
At an outlet of Bellagio Cafe, another restaurant chain, employee Zhu Xiangying told AFP it had only made 30,000 yuan in around 10 days, compared with over 200,000 yuan in normal times.
The China Cuisine Association said in a report this month the country’s restaurant industry saw 4.67 trillion yuan in catering revenue last year, with earnings over the Lunar New Year break making up over 15%.
With millions of people staying indoors during the festival this year, those holiday earnings have evaporated.
Some, including hotpot chain Haidilao – which has temporarily closed its mainland China outlets – have turned to selling fresh and frozen products directly to communities.