‘It’s past the crippling stage’
RESTAURANT owners have complained that lockdown rules have dished out a buffet of trouble to their industry, which they claimed verges on the brink of collapse.
After more than 60 days of being shut, restaurants were permitted to prepare “takeaways” of food and alcoholic beverages when alert level 3 of the Covid-19 lockdown rules took effect on Monday.
But restaurateurs believe serving takeaways alone will not be enough to deliver them from the financial crisis they are facing.
Derryk Myers, a partner in umhlanga-based Butcher Boys, said it was a steakhouse, which was not suited to takeaways. He said the delay in unemployment insurance fund payouts and paying rent was a challenge, and for their business to remain buoyant they have decided that directors take 50% salary cuts.
Another hassle they had was their insurance company repudiating their “notifiable/infectious disease” claim.
“Like us, other restaurants were also told by insurance companies that the virus did not lock us down, but the government did,” said Myers.
Christian Lenferna who owns Restaurant Ille Maurice in umhlanga said it was a “sensitive industry” that needed to be understood before decisions taken.
“I have been in business for 42 years. I feel sorry for the staff, guys who started from scratch and have been empowered by us.
“They have served people like Prince Albert of Monaco at our restaurant and many government heads; now they are sitting at home wondering where their next meal would come from,” he said.
Wendy Alberts, chief executive of the Restaurant Association of South Africa (Rasa) said it was “a drastic time” for restaurant owners. She said the situation was such that Rasa was receiving calls and emails from members on an hourly basis confirming they had closed permanently.
For many who remain in business, the consequences of not generating revenue for more than two months has been unpaid bills, with some suppliers and landlords issuing summons against accounts in arrears, Alberts revealed. And staff being retrenched.
“It’s past the crippling stage,” said Alberts of an industry that comprises more than 23 000 restaurants and employs over 800 000 people.
“The relief to do takeaways (20% of operating capacity) has not been favourable,” she said,
In attempting to slow the spread of coronavirus infection and complying with government’s regulations, Alberts claimed it resulted in the restaurant industry being “sunk”.
“For what, when places of worship, schools and people in office parks can sit in close proximity in workspaces, but we can’t,” she said in reference to no sit-down meals allowed in level 3.
She said the government needed to explain some of the same risk mitigation strategies used in places of worship and schools, etc, so that restaurants too could open.
“This is irresponsible of the government to block restaurants, when we are desperate.”
Alberts said they have made every possible representation, consulted with the government and showed they were ready to open by proving they were operationally healthy, and maintained high hygiene standards. She said that in spite of their efforts to show compliance and readiness to serve sit-down customers, their commitment was not appreciated by the Department of Trade, Industry and Competition.
“Instead, we get sent from one government department to another.”
Alberts said they were “demanding the government immediately allow them to operate at 60% capacity”. They have engaged the services of Mooney Ford, the law firm offering free legal advice to restaurants on Covid-19 issues, to pursue their objective.
Attorney Ashton Naidoo, a partner, said the regulations under levels 3 and 4 of the lockdown “decimated” the industry, and their instruction was to engage with the Department of Trade, Industry and Competition about reopening sit-down service.
Naidoo said takeaways worked for smaller businesses not for restaurants that seated 100 people. “They won’t be able to change their business model overnight, it’s not practical.”
Naidoo said Rasa produced their standard operating procedures, with assistance from a company specialising in hygiene standards. This was handed over during their engagement with the Trade and Industry Department, and this will then be presented to the National Coronavirus Command Council.
Blessing Manale, communications director in the department, said when the risk-adjusted approach was introduced, tourism was placed at level 2 because the nature of this business was largely interactive.
He said its “intensive consultations” with the NCCC has seen some tourism services allowed in level 3.
He confirmed that at its next engagement they will ask the NCCC to consider the issue of “sit-downs”.
“We are committed to working tirelessly to safeguard the tourism industry,” said Manale.
Sidwell Medupe, spokesperson for the Department of Trade, Industry and Competition, said it could not say when restaurants would be granted permission to fully reopen because that has to be decided by the Cabinet.
Medupe confirmed that the minister of tourism was in discussion with restaurants about protocols for a safe reopening.
“We support those discussions. We have noticed some models have been developed in parts of the world to keep people safe in this environment, but this is an issue that all countries are grappling with.”
Medupe said that earlier on during the lockdown the department had gazetted exemptions under the Competition Act to allow restaurants to negotiate collectively with landlords about rental payment holidays.