Frustration, not fortitude, in the restaurant business

THE government's rental reliefs under the Covid-19 (Temporary Measures) Act and its accompanying Amendment Act reflect the recognition that the obligation to pay rent has become impossible for restaurants (and other commercial tenants) to perform.

In fact, that these tenants cannot pay rent is precisely the justification offered by the government to support it rolling out the whole suite of rental reliefs. It is widely known that the restaurant industry is sinking, and the jury is still out on whether these rental reliefs - which include rent deferments, rental waivers, and a statutory repayment schedule by instalment - will add up to something meaningful for food and beverage (F&B) operators.

Indeed, as Minister for Home Affairs and Law K Shanmugam stated in Parliament, the relief framework is no silver bullet and some businesses will still fail despite the extra help with rent. Meanwhile, all this chatter pokes and prods at the white elephant in the room, provoking the unavoidable question: Can restaurants that no longer feel their business is viable opt out of their lease without default, instead of trudging painfully along just because the rental reliefs appear to offer a glimmer of hope? Are these leases frustrated?