News Many restaurants in UAE shutting down as Covid-19 impact...

Many restaurants in UAE shutting down as Covid-19 impact takes effect

-

Many restaurants in the UAE have been reportedly shutting down as Covid-19 impact takes effect in their businesses. ‘For sale’ signs are placed outside the restaurants and even equipment and furniture are being sold in discounts.

“It’s a situation where for many of they try to open, it would mean cash bleeding and which they will never recover. Only government-owned locations have been given rent deferrals or rent-free for up to three months. But the vast majority of landlords have not offered any such break. It will accelerate the destruction of the F&B industry,” an industry source was quoted as saying by Gulf News.

Citing ‘multiple industry sources’, the report added that of 11,000 outlets registered in Dubai, anywhere between 40 to 50 percent are predicted to remain in business over the next few months.

As of this moment, only 3% of F&B outlets in the UAE have reopened since the lockdown with majority of them being at the malls. However, a strict preventive measure is being taken – 30 percent of seating capacity.

Another problem of business owners is the rent being not waived and mandating them to pay the full rent although footfall has gone down more than 95 percent.

Consultancy KPMG recently said that the impact of Covid-19 on F&B segment is more severe with sales down to 30 to 80 percent across concepts.

“Operators expected food delivery to compensate to some extent. However, people cooking at home and concerns around hygiene appear to have dampened its promise,” the report noted.

Ryan Namia
Ryan Namia spends most of his days reading over drafts of new written content and determining which ones make the final cut for online and print publication. He received his Bachelor's degree in Journalism in 2015 and has been writing since 2016. Got a story to tell? Email him at eic@theglobalfilipinomagazine.com. Or follow his IG @rtnamia.

Latest news

POLO Dubai: We do not require payment for online appointment system

The Philippine Overseas Labor Office (POLO) in Dubai has reminded the public that securing an appointment on...

Pinoy in Dubai included in ‘The Philippines’ Top 30 Filipino leaders on LinkedIn’

Dubai-based socio-civic volunteer and PR consultant Art ‘Popoy’ Los Banos was included in the inaugural ‘The Philippines’...

2nd Dakilang Manggagawang Pilipino launched

Ten more ordinary Filipino workers in the UAE will be recognized as ‘extraordinary workers’ on September 25...

Tickets for NBA Abu Dhabi games 2022 to go on sale June 30

The National Basketball Association (NBA) and the Department of Culture and Tourism – Abu Dhabi (DCT Abu...
- Advertisement -

Flush valve sa NAIA na nagkakahalagang P5,000 kada isa, misteryosong nagkakawalaan

Tila misteryo ang pagkakawala ng mga flush valve sa Ninoy Aquino International Airport (NAIA) na nagkakahalaga ng...

Pinoy nurse who works for royal family in Middle East travels the world

An overseas Filipino worker (OFW) in the Middle East is living his life to the fullest by...

Must read

Filipino Institute looking for Caregiver, Nursing Assistant trainers in UAE

The Filipino Institute is currently looking for...

Dubai announces free parking for 3 days starting March 25

The Roads and Transport Authority (RTA) in...

You might also likeRELATED
Recommended to you