NRAI comes in rescue of its member restaurants; creates a relief corpus to raise fund for members' distressed employees
Even a modest 20% job loss in the restaurant industry employing almost 7.30 million people will aggregate to almost 1.50 million job losses
The coronavirus outbreak has adversely impacted the restaurant industry in India. Owing to nationwide lockdown in view of coronavirus, the restaurant business in India has come to a grinding halt. As per primary estimates, if the ongoing shutdown further extends for one to two months, it may lead to grounding of many businesses in the sector which may further result in loss of jobs in the sector.
Even a modest 20% job loss in the restaurant industry employing almost 7.30 million people will aggregate to almost 1.50 million job losses. Furthermore, under the present circumstances, there is no scope for businesses to infuse fresh capital, which in a way would fund these unavoidable cash burns.
Due to the zero cash inflow during lockdown, most restaurateurs are very distressed about employees' welfare and continued payment of wages for the coming months, given the uncertainty over the duration of this pandemic. Companies are acutely worried about the probability of kitchen fires in the houses of these employees getting doused.
In order to deal with any crisis emerging before those employed within the F&B industry, National Restaurant Association of India (NRAI) which represents 5, 00,000+ restaurants have decided to set up a COVID-19 relief corpus. The association has started this initiative to raise funds for the benefit of the distressed employees of its member establishments. It intends to support them with additional payment off this corpus. The association is reaching out to corporate and other groups to help them raise funds for the needy which will help in providing them immediate and long-term relief to their marginal workforce.
Talking about this intiative, Anurag Katriar, President of NRAI, CEO and Executive Director of deGustibus Hospitality Pvt Ltd, said, "As the voice of the Indian restaurant industry, we represent the interests of 500000+ restaurants and an industry valued at USD 4 billion. Whether a chain or independent restaurant, the NRAI is here to help every step of the way. Join us!”
For those who wish to contribute, here is the link: https://nrai.org/covid-19-relief-corpus/