Express News Service
CHENNAI: Dwindling footfalls, high rent and and restrictions during the lockdown have forced popular restaurant chains like Adyar Ananda Bhavan and Hotel Saravana Bhavan to close down some of their branches.
K T Srinivasa Raja, managing director of Adyar Ananda Bhavan, said, “We have shut down branches where rentals are quite high. In Chennai alone, we shut down three branches.” It is learnt that the chain has closed seven or eight branches across the State.
“We are not able to pay the rent due to the drastic fall in business. Once it picks up, we will open the branches,” says Raja. Tamil Nadu Hotels Association President M Venkadasubbu said that during the lockdown many restaurants closed permanently. “Only those outlets that are financially feasible are retained. The focus is on cost cutting,” he said.
The recent relaxation in lockdown norms is a welcome move, especially the permission to operate till 10 pm. But returning to normalcy will take a lot of time, says an industry source, adding the hope is to cash in on the Deepavali and Dussehra festival season to bounce back.
One the other hand, hotel business is finally picking up. V Vasudevan, managing director of Sangu Chakra Hotels said that people are preferring to organise functions like wedding in hotels, rather than in marriage halls. This is driving up the room occupancy, which Vasudevan pegs at 45 to 50 per cent. The owners have given a clarion call to the government for tiding over the crisis.
What the outlets seek…
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Reduction of GST on rentals, sweets, and savouries from 18 per cent to 5 per cent
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Relaxations on number of attendees for events in hotels depending on the capacity of the place
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An industry status to restaurants and hotels
Source: https://www.newindianexpress.com/cities/chennai/2021/aug/30/major-restaurant-chains-in-chennai-shut-branches-to-cut-costs-2351616.html
