The sit-down restaurant industry is in crisis following the government’s decision to ban the sale and distribution of alcohol in South Africa for a second time, something it says already has, and will continue to destroy businesses and jobs.<\/p>\n
Grace Harding, spokesperson for lobby group, <\/span>The Restaurant Collective (R|C), has penned an open letter to president Cyril Ramaphosa, in which she outlines a ‘blueprint for recovery’ in the face of an epidemic that has decimated the industry locally in recent weeks.<\/p>\n Restaurant Collective\u2019s 12 members – which include Tashas, Signature Restaurants, Sakhumzi restaurant of Soweto\u2019s Vilakazi Street, Piza e Vino, Ocean Basket and Doppio Zero – have a combined 512 sit-down restaurants around the country.<\/p>\n This is what the letter said:<\/p>\n Dear Mr President,<\/p>\n Just one year ago, the food and beverages industry contributed R6-billion monthly to the SA economy* and employed more than 500 000 people. The majority of these businesses are SMMEs – small entrepreneurial successes.<\/p>\n Fast forward 12 months and it is unlikely any of these businesses will make a profit. At least 70% have had to retrench employees to save costs and 40% have not received any form of government loan or support. (Fitch SA Consumer & Retail Report Q3 2020)<\/p>\n Sit-down restaurants are limping<\/strong><\/p>\n Since opening on June 29th, most are trading below 50% of usual turnover.\u00a0 This loss of cash-flow has depleted businesses and individuals of any reserves and timing is now critical. Without immediate action, these losses are likely to be permanent.<\/p>\n There are many contributing factors:<\/strong><\/p>\n Roadmap to Recovery<\/strong><\/p>\n The R|C is presenting a blueprint for its own recovery, but we need the ear and the support of the relevant government departments (including the Departments of Small Business Development and Tourism) to make this a reality. We need less experienced restaurant owners to be mentored by more experienced owners.\u00a0 We need to set up a task group of diverse skills \u2013 both private and public.<\/p>\n As we begin this journey, the immediate support we need is:<\/p>\n The Domino Effect<\/strong><\/p>\n There is a domino effect – as SA business leader Vusi Thembekwayo has explained \u2013 and the impact of restaurants closing down includes:<\/p>\n Of the estimated 15,000 sit-down restaurants in South Africa (Euromonitor 2017), only 1,500 are part of a franchise group; the majority are entrepreneurs navigating this devastating crisis alone.<\/p>\n Based on ruinous revenue losses related to government-ordered closures, economic realities, and projections, the sit-down restaurant industry\u2019s survival is dependent on a targeted collaborative response.\u00a0 An unprecedented crisis of this scale requires that we work together.<\/p><\/blockquote>\n
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