Kumari Palany & Co

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Where are the 1500 eateries and restaurants in and around Chennai now?

Posted on: 04/Mar/2021 9:18:02 AM
The Covid-19 pandemic that began in 2020 is still not yet finished and there are many who are getting affected with Covid-19 infection even now.

It is now revealed that since this pandemic began around 1500 restaurants and eateries in Chennai and its suburbs have been closed down.  There were 10,000 licensed restaurants in Chennai before Covid-19 pandemic began and 15% business has been closed down. This has made many to lose their works also.

Shocking truth is that around 1.5lakhs people have lost their jobs due to the shutting down of eateries and restaurants. It must be taken into account that before Covid-19 pandemic started 6lakhs were employed in the hospitality sector and of those 75% were migrant workers belonging to north and northeast states. Information is that most of the closed down eateries and restaurants have been popular and stand alone restaurants have been affected badly.  It must be noted that 5 big vegetarian brands have not yet reopened their 50 branches.

The lack of customers has caused many restaurants to be shut down in OMR. This IT corridor had around 450 eateries and restaurants with a seating capacity from 4 to 100. According to an officer belonging to the food safety department, around 200 of these have not yet renewed their licences or registration. The important FSSAI license is a must for those restaurants with the annual turnover of more than 12lakhs and those below 12lakh have to register with the department. For 1 to 5 years the license and registration are valid is known.

High running costs and poor patronage has been cited as the reasons for closing down of many restaurants. This was also pointed out by a restaurant owner. He spoke about how he had 3 units in places like Perungalathur and Melmaruvathur and how Covid-19 pandemic was responsible for the shutting down of his units.  In the important city places like Nandanam (Chamiers Road) and in Saidapet also famous restaurants have been shut down.

The hospitality sector hasn’t recovered yet and this was brought out by Mr. Ravi, president of Chennai Hotels Association. He shed light on the closing down of 1500 eateries and restaurants in the Coronavirus pandemic. The truth is that the owners were unable to pay high rentals for the buildings due to poor patronage. Input credit on GST was not got by the association. After winding up the hotel business, some hotel owners were forced to search for jobs also.

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