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Restaurants struggle to attract customers despite lifting of lockdown restrictions

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s restaurants, cafes and other eateries open for business following government’s lifting of lockdown amid the pandemic situation earlier, the industry is experiencing challenges in reopening its doors to customers. Lahore, where traditional food is considered a vibrant part of the city’s culture, tradition and life itself, is also faced with a similar situation.

There are several famous food spots in this historical city along with four Food Streets set up especially to attract customers wanting a taste of traditional food and culture. However, these Food Streets and other popular food spots are struggling to attract large numbers of customers since lifting of the lockdown.

Muhammad Nadeem, owner of the renowned Sheefa Tikka Karahi at Lakshami Chowk, tells The News on Sunday that sunsets have traditionally marked the beginning of business for restaurants and roadside eateries. Lakshami Chowk is a popular place not only for its historical appeal but also for its restaurants and roadside eateries which remain open late into the night. Normally, nightlife in Lahore centres on dining and eating out with popular food spots opening their doors once darkness settles in. However, Covid-19 has changed all that.

“There are far fewer customers coming to food outlets though activities in other businesses have come back to normal. Food spots that once were known as inexpensive and affordable for everyone are also fighting hard for their survival”, he says.

Nadeem believes that inflation and financial setbacks due to the pandemic have had a discouraging impact on activities such as dining out. However, some believe that traditional food spots and food streets are perhaps not abiding by standard operating procedures set by the government as safety measures, which is why customers feel reluctant to visit them.

Bundu Khan Restaurants and Bakery is a renowned food chain. Sadaqat Rahim, the director of the food chain, tells TNS that SOPs are religiously implemented in all restaurants and bakery outlets. Nevertheless, he says, in some cities the percentage of customers has not risen beyond 40 percent of what it used to be while in others it is still around 30 percent.

According to Rahim, compliance with the SOPs has extended their expenditures by requiring sanitisation walk-through gates, reducing seating capacity in dining halls by 50 percent, providing sanitisers for guests, frequent spraying of disinfectants in halls, providing facemasks and gloves for employees etc.

“Unfortunately, the government has abandoned this industry despite our requests for relief. As a result, investors have had to lay off a large number of employees,” says Rahim.

In the Punjab, the number of registered hotels and restaurants with the Punjab Food Authority (PFA) is 30,000. However, there are concerns that a considerable number of restaurants are no longer in the business.

Raza Ahmed, owner of Bamboo Union and a senior representative of Lahore Restaurants’ Association (LRA), while talking to TNS says that 20 to 30 percent of all food outlets have closed permanently. This, he says, includes some big chains as well.

“Out of these restaurants, some used to have over a hundred employees at a single branch. Unfortunately, first the lockdowns and later, the government’s unresponsive policy disrupted the industry. Consequently, some outlets have permanently vanished from the market which, undoubtedly, is a huge loss for investors and employees.”

During the lockdown, restaurant owners have met provincial ministers and representatives of federal government to seek some relief either in taxes or deference in payments of utility bills.

“We have warned the government on several occasions that long closures would result in massive layoffs and unbearable losses for investors if the restaurant industry does not get any incentive,” Ahmed shares.

Currently, some owners are not interested in reopening their outlets unless the situation returns to normal. Another reason is the outstanding bills of vendors. According to Ahmed, suppliers of poultry, meat, beverages and spices are desperately waiting for those restaurants to reopen that owe millions of rupees against products purchased before lockdown. Investors, on the other hand, have no money to pay off, and therefore, many outlets remain shut.

The challenges for the restaurant industry are expected to keep some out of business during the month of Muharram. Traditionally, business activity in the restaurant industry declines in this month. “So investors will have to tolerate this unending loss for another month or so,” says Ali Chaudhry, owner of Bagh restaurant.

The pandemic and post-lockdown situation is expected to bring about changes in the industry as well. “Some outlets situated in posh areas are serving customers in their vehicles. This trend is already in practice at traditional food spots. The chief motivators for this change in posh areas are the SOPs put in place by the government, cautious attitudes of the customers and attempts to revive business,” he says.

Quite unlike restaurants, most bakery businesses have witnessed an increase in revenue. The bakeries remained open even during the lockdown even though business was slow, says Rahim.

The industry, however, expects business to return once the fear of the pandemic dwindles away. Rahim expects a tremendous boom during the marriage season come October. Till then, there are no big hopes for the industry. 


The writer is a staff member. He can be reached at warraichshehryar@gmail.com

To eat or not to eat