Chennai: In the last three months, many restaurants have closed in Tamil Nadu after the second wave of COVID-19 hit and deteriorated the situation. Several sources say data is still being compiled, and the final figure will not be known until the lockdown has been fully lifted. In addition to Chennai, Coimbatore, Salem, Tiruchi and Madurai, real estate experts claim that other eateries have put themselves on the market. Last year, a similar pattern emerged after the first wave hit. More than 2,000 small, medium, and large eateries closed in the hotel industry.
As rumors of a third wave are circulating, individuals in the hotel industry do not want to take any chances. Most of the properties for sale are located along state and national highways, while others are near schools, colleges and IT corridors. Franchisees who have taken over larger brands are having difficulty selling.
Restaurants near movie theatres and other public places had permanently closed, he continued. Sukanya Bhaskaran, who owns a fried chicken franchise at Santhome High Road, said her company had dropped by more than 90%, and she had no choice but to sell it. Her staff left in the first wave and never returned. Rent was high because they didn’t get many orders through food aggregators because sales were poor. Consequently, surviving and running the restaurants became increasingly difficult.
Read more: Quitting BJP – stakes behind
According to restaurant owners, the cost of labor has increased. When you don’t pay your employees, it’s hard to keep them. Even the largest of businesses appear to be struggling in the wake of the second wave, and some have closed a few locations. According to M Ravi, president of the Chennai Hotels Association and chairman of Vasanta Bhavan Hotels India, many small hotels had left and the available spaces had not been taken. Most hoteliers and restaurant operators warn that now is not the time to buy hotels that are for sale. According to their predictions, it will take the industry a few more years to stabilize.