‘Closed For Renovation’ or ‘Closed For Good’? Many Shops & Restaurants in Mangaluru Shut Down due to Covid-19 lockdown
Mangaluru: Business has plummeted for restaurants and bars, as the lockdown and coronavirus pandemic has restricted access from diners. Even many other businesses are also affected by the lockdown. Just go around the city, you’ll see signs posted like ‘FOR RENT’; ‘FOR SALE’; etc. And when you notice a sign like ‘CLOSED FOR RENOVATION’, put up in front of a recently opened shop or eatery place, there are 99% chances the business has “CLOSED FOR GOOD’? In March, when the nationwide lockdown was first announced, it was no secret that restaurants, bars and the food & beverage industry at large would struggle. Early estimates suggested that a significant percentage of eateries would close due to lack of business. Even before the lockdown began, restaurants were reporting a drop in foot traffic as citizens learnt that enclosed spaces could exacerbate the spread of COVID-19.
Those hotels and lodges which didn’t operate during lockdown, and opened again after lockdown was lifted are facing problems with hardly any customers patronizing them. For example, Taj Mahal Cafe in Hampankatta which was packed with customers any time of their business hours, has also taken a thorough beating with less customers, so also Costa Restaurant on Kankanady Bye Pass Rd, near Father Muller Hospital. Pereira hotel/restaurant near Wenlock Hospital is yet to open after it was closed during lockdown. Sources reveal that nearly 100 hotels/restaurants/bars/lodges in Dakshina Kannada and Udupi district have temporarily or permanently closed down, as businesses attempt to grapple with the economic downturn spurred by the pandemic. One of the main reason behind the closure was primarily due to operational costs. “It was just going to be impossible to continue here,” said the owner of a small restaurant.
Many eatery places are only doing parcel services, with dine-in closed, fearing customers may not show up. “Though it is a difficult decision, we believe that this is the correct step to help flatten the curve and ensure the well-being of our beloved staff and patrons.There was no peace of mind as all of us are constantly worrying,” said the manager of a bar cum restaurant in the heart of the City. Many restaurants are yet to decide to open due to the spike in Covid-19 cases and deaths in DK. Because of the increasing number of Covid-19 cases in DK, many are reluctant to dine at restaurants/hotels. And also many of local restaurants /hotels hire labourers from North India, these labourers who returned to their hometown have returned. Therefore without enough work force restaurant owners can’t run their business. With shortage of workers and patronage of customers, hotels and restaurants owners are in big trouble.
And with high rent charged by the owners, it’s impossible to run a business when sales are down during this pandemic-therefore the only option is close the business temporarily or permanently. Forget about small hotels,restaurants, even the star hotels are struggling to get customers. The General Manager of a chain star hotel said with tourism sector closed no one is visiting, including cruise passengers-booking for hotel rooms is below 25%, this virus has totally killed the hotel industry. As per T Shivaram Shetty the president of Udupi district Hotel Owners Association that since business never picked up even after lockdown, many hotels and lodges in the district had no other option than to shut down. Even the Bars & restaurants, Pubs, lounges, clubs which opened on 1 September are not happy with a low turn out of clients- many are in verge of closing soon.
Not just restaurants/hotels, other businesses have shut down for good or put their premises for rent- and you can see quite a number of ‘SHOP FOR RENT ‘or ‘SHOP FOR SALE’ signs all around the City. Classic Color lab, which was doing brisk business shut down, after photography went digital/smart phones/digital camera etc- and also due to lack of weddings and other functions. Caterers and event management are the other who are facing the brunt of this pandemic. With no weddings or other functions, caterers have switched to packed parcel food home delivery, where some of them are doing good in that new venture, while few others are crying? : For us, 2020 is over and we are looking at 2021. Waiver of rent, fixed power bills and cut in property tax has been sought. The rental fee runs into lakhs of rupees. If at least two or three months’ rent is waived, the hotel industry can survive,” said Shetty of a medium size hotel, bar and restaurant.
Families banking on tourism revenue for their livelihood are also facing the brunt of the pandemic. William D’souza- Managing Director of Globe Travels in Mangaluru said, ” In the world and in India, the worst hit sector is the Travel and Tourism Industry having millions of people losing their jobs and their families being devastated without any Govt. help. In India, the travel and tourism Industry lost its hope of revival in the near future. Common people have still not come out of their shock of Corona to travel on Leisure and holidays. Almost all Business firms are on zoom for the meetings cancelling all travels to attend the business meetings. Mangaluru has been affected very badly since all cruises have been cancelled since March 2020 and we do not think, any cruises will operate to Mangaluru in the near future. This has affected in a big way the tourism industry, losing jobs of youngsters, transport business and of course the catering and local shopping. Its sad that the state and central Govt. have not yet come to the rescue of the Travel and Tourism Industry. Levying 5% tax on foreign remittance effective October 2020 will jeopardize the travel and tourism industry. Government needs to open the international air travel without any further delay which will help the travel and tourism Industry to recover very slowly but steadily. Most of the countries in the world have opened up their skies for foreign tourists with lots of care to control the Pandemic.
Many cash-strapped hotels, restaurants and other businesses are planning to wind up business run in rented buildings, unable to pay high rent, staff salaries, and power bills. In the City, 75% of the businesses are run in rented properties, and with high rent charged by the owners, it’s impossible to continue their trade in this situation during pandemic. Owner of a medium size hotel cum restaurant said “A small percent of hotels are run in their own buildings here. If the rent for the past couple of months is not waived, many will be forced to shut down soon. There is no point running hotels when there are no tourists. Also, running hotels post-COVID-19 seems exceedingly enviable since business is not assured for the next six months at least,” Hoteliers were keeping their fingers crossed and hoping that things would become normal after lockdown, but hoteliers are uncertain of bookings but are looking at 25% business in restaurants. At least a few more months or a year could be tough for them.
Families banking on tourism revenue for their livelihood are also facing the brunt of the pandemic.
Ever since the COVID-19 pandemic came into the picture, it had affected millions, and brought down the economy in a shocking turn of events. It has left an impact on every industry and establishment taking a huge blow due to the current scenario. Right from the start of lockdown to now, there have been businesses shutting down or pausing operations, unable to immediately recover from the losses. It will probably take a few more months or over a year to get things back to normal-until then God is the only help and support for all these business owners who closed their businesses and those who are struggling to run their businesses.
