F&B firms frustrated by return to two-person rule
They say emerging clusters of infections aren't happening in restaurants, and that getting rental waivers is complicated
Singapore
DISAPPOINTMENT and frustration. This was the overwhelming sentiment felt by food and beverage (F&B) operators with whom The Business Times spoke, following the announcement that social gathering and dine-in numbers will be reduced to two for a month starting Monday.
Revenue fell 60 per cent the last time the two-person rule was implemented, said Gursheel Dhillon, head of public relations at Eclectique Concepts, a company which owns brands such as Gabbar Bistro & Bar, Latin American cafe and bar Cuba Libre and Indonesian restaurant Nusantara Singapore.
"People are going to cancel reservations we've taken months to rebuild,' said Ms Dhillon.
Dellen Soh, chairman and chief executive officer of Minor Food Singapore, said: "We have the highest vaccination rates in the world and we are talking about living with Covid. We thought our lives were back to normal, with over 90 per cent of patients basically asymptomatic or (experiencing) very mild symptoms.
"I'm sure the taskforce has its reasons. They probably want to make sure things don't blow up, but it seems quite harsh for businesses."
Ivan Brehm, chef-owner of Nouri, highlighted his frustration that decisions were being made unilaterally, without consulting the industry.
"It isn't until we can sit and discuss this with policymakers in a way that is open and frank and takes into account our expertise, that we may see some changes. I feel there is no mood currently to broach this topic in earnest," he said.
"The reality on the ground does not correspond with the restrictions that are being implemented. The clusters ... are not happening in the restaurant universe. So why not create policy and enforcement procedures that correspond with that statistic?"
Restaurant Association of Singapore president Andrew Kwan meanwhile warned of "battle weariness" setting in. "We may need to monitor carefully the potential non-economic and non-medical fallout from start-stop, go-no-go operations from the rank and file."
Above all else, operators highlighted rent as a continued pain point.
To mitigate the impact of the enhanced safe-management measures, the government announced that it is raising the Jobs Support Scheme (JSS) support level to 25 per cent for the period of Sept 27 to Oct 24.
It will also provide a two-week rental waiver for qualifying tenants on government-owned commercial properties. Qualifying tenant-occupiers and owner-occupiers of privately-owned commercial properties will get a two-week rental relief cash payout under the Rental Support Scheme.
Nouri's Mr Brehm said: "Nobody's being ungrateful. But the fact is that if we're going to be front-lining this throughout the pandemic, support needs to be adequate."
Minor Food's Mr Soh echoed this, noting that the government has "done its part" in terms of JSS support and rental relief, but added that the rental waiver framework - which requires private commercial landlords to provide two weeks of rental waiver to qualifying tenants - remains too complicated.
For instance, even if eligible tenants receive a notice of rental waiver, they do not automatically qualify. They must still send a copy of that notice, a completed declaration form, and supporting documents to their immediate landlord via e-mail or registered post.
"All businesses would definitely appreciate the government just mandating a clean and simple structure, so at least we know that rental, which forms a large part of our cost, is taken care of," said Mr Soh.
A F&B operator who declined to be named for fear of potential backlash, added: "There are strong sentiments on the ground that all major REITs (real estate investment trusts) have reported record earnings, a testament that rebates extended have not been all that significant."
Seoul Garden's chief development officer, Garry Lam, added: "We hope to see a response from landlords to help their tenants ride this setback."
