Restaurants may see spate of cancellations with tighter cap on social gatherings

Singapore

RESTAURANTS in Singapore are anticipating some cancellations ahead of Mother's Day celebrations this weekend, as limits on social gatherings will be reduced from groups of eight people to five from this Saturday to May 30.

To mitigate this, some eateries are calling customers to offer takeaways, or to get them to change the size of their bookings.

"Once the announcement came out, our staff has been reaching out to customers who have made reservations with us this weekend to update them of the new ruling," said Alan Wah, chief executive of White Restaurant

"We are prepared," said Reuben Chua, chief operating officer at Yunnans Restaurant. "We have takeaway and delivery bundle deals, as well as family set meals."

Still, "it will be a disappointment for families and for the restaurant", said Gunawan Hadi, general manager at fine dining restaurant Alma by Juan Amador.

"I would think that, between now and end of the month, revenues will have to suffer," he said.

Already, some food establishments have experienced a drop in traffic following the government's call last Friday for people to reduce their social interactions.

Restaurant chain Penang Culture, for instance, experienced a 20 to 30 per cent drop in footfall, particularly in highly frequented shopping malls like VivoCity.

The Restaurant Association of Singapore also noted that the tightened cap on groups will coincide with two more festive occasions this month - Hari Raya Puasa on May 13, and Vesak Day on May 26.

"Many of our members will likely need to accommodate adjustments to some of the reservations that have already been made, especially for these upcoming festivities," it said.

However, the association said it understands the need to "promptly arrest the situation (the recent spike in community infections) and flatten the curve quickly".

It had also reached out to its members over the weekend to "hold back on any of their upcoming promotions over the next two weeks".

Meanwhile, some retailers have also been affected by stricter safety measures.

Last Friday, the occupancy limit for shopping malls and large standalone stores was reduced to one person per 10 square metres (sq m) of gross floor area, down from one person per 8 sq m of gross floor area. This rule is in effect till May 30.

Coupled with consumers' worry over increased community infections, this has resulted in some retailers suffering 20 to 40 per cent falls in foot traffic, according to the Singapore Tenants United for Fairness group, which conducted a straw poll among its members. "This recent development caught us by surprise," a spokesperson for the group said.

"Retail business sentiments in general have been weak and most businesses are not prepared for another drastic drop in shopper traffic and business."

"It's certainly not good news especially when we have two major gifting and celebratory occasions: Mother's Day and Hari Raya Puasa," said Rose Tong, executive director at the Singapore Retailers Association.

"But retailers understand the decision taken is necessary for the future good of the economy. Let's hope the situation will normalise quickly and we won't have to sit out another full-blown circuit breaker," she added.

For clothing retailer The Closet Lover, business has not been affected, but co-founder Bertilla Wong noted that consumers may be "more wary" after the latest government announcements.

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