homehospitality NewsRestaurants' Christmas weekend hit by COVID restrictions; fear New Year eve washout: NRAI
Restaurants' Christmas weekend hit by COVID restrictions; fear New Year eve washout: NRAI
COVID cases have been on the rise across the globe. Back home in India, as the total tally has crossed the 400 mark, States were forced to take stock of the situation and impose restrictions marring the festive cheer of New Year’s eve. To understand what it means for the restaurant industry and the hospitality industry, CNBC-TV18 spoke to Kumar Rajagopalan, CEO, Retailers Association of India and Anurag Katriar, Trustee, National Restaurant Association of India.
COVID cases have been on the rise across the globe. Back home in India, as the total tally has crossed the 400 mark, States were forced to take stock of the situation and impose restrictions marring the festive cheer of New Year’s eve. Most metros including Mumbai, Delhi, Chennai have imposed a night curfew, New Year's eve celebrations have been cancelled on a large scale as well.
Also Read: India COVID-19 highlights: Maharashtra imposes Section 144 at night; Omicron cases jump to 358
To understand what it means for the restaurant industry and the hospitality industry, CNBC-TV18 spoke to Kumar Rajagopalan, CEO, Retailers Association of India and Anurag Katriar, Trustee, National Restaurant Association of India.
On restrictions, Katriar said that he hasn't seen any impact till now. He stated that December usually contributes a sizeable chunk toward the annual revenue and they are already seeing a dip from the average Christmas weekend revenue this year. He added that December usually accounts for 12-15 percent of the annual revenue, especially the last week.
He said, “December works out to about 15 percent of our annual revenues and within that also most of it comes in the last week. Now with the timing restrictions and the curfew that is already looking very bad.”
Katriar noted that the expectation was that the Christmas weekend would boost consumption but that hasn't been the case. He said, “We were hoping that we will probably get this opportunity, Christmas weekend followed by New Year, to boost consumption in the sector but unfortunately it has worked the reverse way as it happened last year too.”
He fears that New Year's eve will be a washout this time around. He said, “With all the new restrictions coming in, night curfew, the new year is going to be a completely washed out and it’s a huge dampener.”
Katriar is of the view that there is an absence of logic in the restrictions imposed. He said, “At some level, I do feel there is a lack of logic there – if you are allowing only fully vaccinated then why 50 percent and if you are allowing only 50 percent then why cut-off at midnight.”
Meanwhile, Rajagopalan believes night curfews will affect sentiments. He said, “This has a sentimental hit as well as direct business hit, for example, Katriar already talked about the restaurant sector facing the brunt of it and more so when it comes to the formal sector because the highest amount of compliance to all these happens from the formal sector and the formal sector takes the hit of all of this.”
For the entire discussion, watch the video
(Edited by : Dipikka Ghosh)
First Published: Dec 27, 2021 11:07 AM IST
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
Lok Sabha Elections 2024| Phase-6 showdown — BJP's strategic gains vs INDIA bloc's revival efforts
May 26, 2024 4:01 PM
Lok Sabha Elections: 6th phase sees over 59% voter participation; West Bengal records highest at 78% turnout
May 25, 2024 10:45 PM