NRAI Advises Restaurants’ Shutdown in India

As the responsible industry body for the food service sector, NRAI has been following the Coronavirus outbreak closely. This decision will have a huge impact on several bars, pubs, restaurants financially but it is being done for the larger benefit of communities.

TO PREVENT the spread of COVID-19 in India, the National Restaurant Association of India (NRAI) has sent out an advisory to all its restaurant members to shut down their operations till 31st March 2020.

As the responsible industry body for the food service sector, NRAI has been following the Coronavirus outbreak closely. This decision will have a huge impact on several bars, pubs, restaurants financially but it is being done for the larger benefit of communities.

As food service industry works on a fairly high proportion of fixed operating costs and therefore, this decision will have a huge impact on the industry. In order to find a solution to this, NRAI intends to work with all stakeholders in the ecosystem; from landlords to various departments of the government, banks and financial institutions an seek their support in mitigating losses as far as possible.

As most of the people use public transport to commute, they run a huge risk of getting infected and further becoming carriers of the deadly virus. In order to avoid such risk, the industry body has advised to shut down all the operations and help curtail the spread of COVID-19.

In this extraordinary situation which is beyond control, NRAI seeks support such as converting fixed rentals to variable revenue share, allowing input tax credit on GST, a moratorium on loan repayment, waiver of interest, reduction on energy costs, deferred payment of license fee and taxes which will go a long way in curtailing the astronomical losses.


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