Hundreds of restaurants up for sale

Hundreds of restaurants throughout Tamil Nadu are up for sale, and lots of have shut down within the final three months after the second wave of COVID-19 hit the State.

Sources stated the info had been but to be collated, and the quantity can be clear solely after the lockdown was lifted fully. But these in the true property sector stated a number of restaurants in Chennai, Coimbatore, Salem, Tiruchi and Madurai, amongst different locations, had put themselves up for sale. An identical development was seen final 12 months after the primary wave struck. Then, these within the lodge trade stated over 2,000 small, medium and large restaurants had folded up.

“With news about the third wave doing the rounds, those in the business do not want to take any chances. Some of the properties that have been put up for sale are on State and National Highways, some are near schools and colleges and some near information technology corridors. Those who have taken franchises from bigger brands are also struggling to sell,” stated a supply within the lodge trade.

He added that restaurants close to film halls and different public locations had closed completely.

Sukanya Bhaskaran, who runs a franchise of a fried hen model on Santhome High Road, stated her enterprise dwindled by over 90% and he or she had no different possibility however to place it up for sale. “My employees who left during the first wave never returned, and there was a huge pressure from the landlords to pay up the rent. Sales were low and we hardly got orders through food aggregators,” she stated.

“Earlier, people used to stop along highways to have food and refreshment. After the pandemic, the number has dropped. Buses have stopped halting at too many places. Lorry drivers are operating on tight schedules, having no time to stop,” stated Ashokan, who’s into the restaurant enterprise for seven years now. “I have two restaurants on the Salem highway and I have closed one, and put up all the assets and the second hotel for sale.”

Labour price gone up

Restaurant house owners identified that labour prices had gone up. “If you don’t pay the workers, it is difficult to retain them,” stated one of them. Even greater manufacturers appear to be struggling after the second wave, and a few have wound up just a few branches.

M. Ravi, president of the Chennai Hotels Association and chairman of Vasanta Bhavan Hotels India, stated many small resorts had vanished, and there have been no takers for the areas opened up for sale. “Losses have been mounting for those in this business,” he stated. Mr. Ravi has closed just a few branches throughout the State.

K.T. Srinivasa Raja, managing director of Adyar Ananda Bhavan Sweets India, stated resorts hardly bought 15% enterprise by way of meals aggregators and takeaways. “We have also closed some of our branches,” he stated. He added that those that supported the restaurants, comparable to vegetable and milk distributors and uncooked materials suppliers, had additionally misplaced cash.

Most hoteliers and restaurant house owners cautioned that this was not the proper time to purchase resorts coming up for sale. They stated it could take one other 12 months or two for the trade to stabilise.