The month of December is crucial to the hotel and restaurant industry and over twenty percent of annual revenues are often derived in this month alone. A bulk of this comes from the last few days of December where revelers loosen their purse strings and indulge in meals and holiday spends. The Omicron threat and fears of the third wave in India now threaten to play spoilsport for this sector that has been one of the worst-hit since the pandemic began. “The last ten days of December account for over 60-70% of the month’s revenue. It’s unfortunate that this is happening”, says Zorawar Kalra, Founder of Massive Restaurants. He points out that 30% of restaurants have already shut and 25% of the workforce have lost their jobs in the sector.
Restaurants already have to function at a fifty percent capacity and their owners it is difficult to sustain with this model. On top of this, cities like Mumbai, Delhi, and Bengaluru are clamping down on Christmas and New Year celebrations. Night curfew has also been announced in several states. The Industry is now hoping they are not ‘singled out’ as restrictions return. “I don’t understand why a theatre with 100% capacity can operate, public transport can work, but restaurants can’t work”, asks Anurag Katriyar, Trustee at NRAI (National Restaurants Association of India),” Airlines where people do eat and take off their mask are allowed.
I definitely feel that we have been singled out”, he rues.
The impact of Omicron fears have already started showing up. While there is no ban on travel, holiday makers are already showing caution. Cancellations at destination resorts have grown says Pradeep Shetty of FHRAI, a federation of restaurants and hotels across the country. “We are looking at cancellations in many resort and holiday locations. This is because of sentiments going low, the fears and the curbs”, he says.