Food Companies faces Corona heat, Seek Support from Govt

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The France-based catering company Elior expects the government to give basic protection of wages for workers
  • Nusra Deputy Features Editor

In the wake of the fast-spreading pandemic, the Prime Minister yesterday announced extended complete lockdown across each state and union territory for 21 days. The onslaught of coronavirus has taken the world by storm and has brought the economy down on its knees. Ever since the outbreak of a pandemic, each and every industry has been facing huge heat. And, the same goes for the hotel and restaurant industry.

It has been two weeks since all the restaurants, bars, clubs, etc have been completely shut and it will continue to do so more 21days as per government announcement. The hospitality industry has already been facing the loss and deep fall down. In this time of Crisis, from Restaurateurs to Business owners, everyone is relying on the government to provide some relief.

Even the National Restaurant Association of India (NRAI) has requested the government to relax certain rules and regulations in dire times when COVID-19 is fast spreading across the world.

Commenting on the same, Arjun Raj Kher, brand head of Hitchki and Bayroute said, "Looking at the current scenario, what people are going through is much more serious and they need all the support. Though these are testing times for the Industry, it is secondary amidst the circumstances. However, we will definitely need the support from the government once everything is under control and we are ready to bounce back.”

B2B Food Companies Also Faces the Heat

Facing the heat, corporate food catering company, Elior India, also mentioned that surviving the coronavirus crisis for B2B food players is going to be extremely difficult because there is no natural cushioning in the foodservice sector. The country is in a state of lockdown for 21 days to fight the coronavirus pandemic which has brutally affected the foodservice industry.

"It is not a sector that attracts private capital easily, not a sector that banks lend working capital to, especially for the smaller players. We are going to see a complex set of reactions to which there is no solution or a certainty of what the outcome can be," shared Sanjay Kumar, CEO and MD of Elior India.

The France-based catering company expects the government to give basic protection of wages for workers at the bottom end of the pyramid. Kumar feels this is a great opportunity for the government to bring back the input tax credit to ensure that some strength can be injected into the supply chain. Otherwise, the agriculture supply chain is going to be impacted adversely.

Boosting Delivery via Tech-Players

Globally, as stricter safe distancing measures for public venues, social activities and activities are introduced by the Government to reduce the risk of further local transmission of COVID-19, and with more people at home, restaurants across Singapore are turning to delivery as a way to sustain their businesses and keep serving customers.

Deliveroo has seen over 600 new restaurants join the platform since late January, meaning more restaurants will be able to extend their sales through delivery. Since March 1st, there has been a 50% jump in the number of restaurant sign-ups, compared to the previous month.

In India also players like Zomato, Swiggy, Rebel Foods, Caterspoint etc are continuously delivering healthy and delicious food across major cities through delivery.

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