Nrai Seeks Waive Rents For Restaurants Till June

NRAI, the industry body representing over five lakh restaurants said that the lockdown may last until a month or two but the industry will take several months to revive.

Noida: Officials seal the premises of hotel Sandal Suites after a suspected corona infected traveller stayed there, at sector 135 in Noida, Thursday, March 26, 2020. (PTI Photo)

New Delhi: It is expected to be the worst time for economies worldwide and the recession might be bad or worse than the recession of 2008-09. In view of the nationwide lockdown and the crisis, the National Restaurant Association of India (NRAI) has urged landlords in the food and beverage (F&B) or restaurant industry to waive their rents and the common area maintenance charges till June or till the lockdown lasts. The industry body representing over five lakh restaurants said that the lockdown may last until a month or two but the industry will take several months to revive. In an open letter to the landlords in the food and beverage (F&B) business, the association has urged that the common area maintenance charge should be taken at 50 per cent of the agreed rate for the six months after the lockdown ends. The association said that there should not be "minimum guaranteed rents for six months post that and instead work on a pure revenue share equivalent to 50 per cent of the agreed terms up to a maximum of 10 per cent of monthly revenues." In the letter, NRAI President Anurag Katriar said, "This appeal is aimed at ensuring our mere survival during such extraordinarily troubled times. We aren't trying to be profiteer at the expense of the landlords. As long-standing business partners of ours, we are hopeful that the landlords will extend their support in these times of unprecedented crisis." The industry body, last week wrote to the Finance Minister seeking economic relief for the restaurant industry in view of the disruption caused by the coronavirus scare in the country. Acknowledging the recent relief measures by the government including the deferment of GST return filings, he said that the sector would require a larger stimulus package to revive the sector and support its over 70 lakh employees. "We will need a much bigger stimulus package from the government whenever we get back to the stage of rebooting our business," he said. IANS