The pandemic has huge affect on foodservice industry since the restaurants and bars were ordered to close down by the governments. The open shut situation since the pandemic started has put the operators in a confused state. Should they continue to support the institution and its workforce or just surrender and close down? With restaurants not operating, has also caused a ripple effect on related industries such as food processing, imported foods etc.
According to a note released by HRAWI, over the last 15 odd months, various factors have resulted in massive financial losses due to the lockdown. Many restaurant owners said they could be forced to shut their businesses permanently in the absence of government support. Over 40 per cent of restaurants and hotels in the Maharashtra State have already closed permanently and a significant number of people employed in restaurants or hotels are moving away from this sector and are accepting lower wage jobs over uncertain wages due to constant closures.