Why restaurants in Noida, Ghaziabad struggle to stay afloat | News from Noida

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NOIDA / GHAZIABAD: The UP government has allowed restaurants to open, but the battle to stay afloat is far from over.
While most restaurants and pubs are still counting their losses from the two closures over the past year, a handful – around 30 – have had to be closed in the city.
Market watchers have already sounded the alarm bells, estimating that more than 80% of restaurants may have to close in the event of another lockdown. Not only the restriction on hours or the number of visitors allowed at a time, high rents, ongoing operational costs, understaffing and difficulty in obtaining raw materials are some of the other debilitating factors that have hit hard. the restaurant industry.
Arpan Gupta, owner of Cheenos, a sector 18 restobar, has already closed two of the three restaurants he owned. “The pandemic is going to continue, and it is certainly not possible for a restaurant to last more than two years without making a profit. By next year, even those who have managed to stay afloat so far will likely have to shut down. The industry will only be able to revive itself when the pandemic is fully over. This may be a kind of rebirth, but the economy will be very different and there will be a lot of reluctance to make big investments, “said Gupta.
Gupta not only shut down Cheenos – which had been operational in Noida for a decade – but also Detroit at Connaught Place in Delhi. The only restaurant he currently runs is the Anglo at Khan Market, which is the smallest of the three establishments.
Anuj Mittal, owner of Paprika Park and Drunken Detective at Indirapuram Habitat Center, said: “My business suffered huge losses in both closures. Out of a staff of 60, I had to lay off 53 of them. I have taken loans to pay bills and other dues. Restaurants and eateries continue to suffer losses due to operating hours. About 500 hotel employees have lost their jobs at IHC and the recovery still looks grim. ”
Although door-to-door deliveries were allowed during the lockdown, they were hardly financially viable. “We don’t see businesses picking up any time soon. People are afraid to go out after the second wave, when too many patients have died. a lot, ”said Varun Khera, head of the Noida section of the National Restaurant Association of India (NRAI).
Khera added that apart from high rents and license fees, the restaurant industry had not received much support from the government either.
“It becomes a huge concern if you have to keep paying rent, but business is closed. It does not make economic sense now that most restaurants remain open because there are very few customers at restaurants. At the GIP Mall itself, more than 18 restaurants have closed, ”said Vivek Dixit, owner of Ali Baba’s caves at the GIP mall which closed its shutters after the first lockdown.
Dixit explained that the cost of running a small or medium-sized restaurant could be Rs 10-20 lakh per month.
Vikas Singh, owner of Bercos and Pind Baluchi at Indirapuram Habitat Center, said: “The hospitality sector has been hit hardest by the foreclosure. This sector has traditionally supplied large numbers of employees, but when owners are fighting for their own survival, they cannot keep staff for long. ”
Singh said the National Restaurant Association wrote to the state government urging it to allow restaurants to stay open until 11 p.m. on weekdays. He also called on the government to lift the weekend lockdown. What has also contributed to the growing restaurant losses is the emergence of cloud kitchens. “For restaurants, deliveries have never been a big part of the business. However, with the arrival of many cloud kitchens, there is more slice in the pie. Although that’s not good for catering establishments is good news for customers and new small entrepreneurs, ”said Varun Khera.
(With contributions from Aditya Dev)


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