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Fin24 reports when President Cyril Ramaphosa announced on Sunday that SA would move to more stringent level 4 lockdown regulations, he indicated that until 11 July restaurants and other eateries would only be permitted to sell food for takeaway or delivery.
"This is because it is not possible for patrons to wear masks while eating or drinking in these establishments," Ramaphosa explained. This will be big blow for the embattled sector, which has been among the worst affected during the pandemic. After having to close their doors at the end of March in 2020, they were allowed to open for takeaways in May. Only in mid-June could they open for sit-down meals, but recurring alcohol bans, and continued hesitancy among patrons, have starved them from income. "Yet again, restaurant will be the hardest hit, with no discussions, no Ters [Temporary Employer/Employee Relief Scheme], no financial support," lamented Wendy Alberts, of the Restaurant Association of SA (RASA). She warned that the number of restaurants forced to close their doors have reached the "thousands" since lockdown started last year, and that the latest restriction might be the final blow to many eateries. Deliveries would not save restaurants given the large commissions they needed to pay third-party delivery groups, Alberts added. She said it was critical for restaurants to get more legal protection against claims from their banks and landlords during the move to level 4, which might include lease and debt service deferments. The latest data from Statistics SA show that restaurants' income from food and beverages in February was still 30% below pre-pandemic levels. In January, their income was half that of the same month in 2020.
- Read the full original of the report in the above regard compiled by Helena Wasserman at Fin24
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