10% restaurants shut down, 30% more unlikely to open even after COVID-19: Zomato Report

Guwahati: As per a report by food delivery app Zomato, nearly 10 percent of dine-out restaurants across the country have shut down while 30 percent more restaurants currently not operating due to Covid are not likely to reopen even after the pandemic ends.

As per the report released on Wednesday, these restaurants are among the 83 percent dine-out restaurants that have been closed down following the virus outbreak. The remaining 43 percent of restaurants that are shut are likely to open as the situation improves.

"Out of the 83 percent restaurants that are not open for business, 10 percent of restaurants have already shut down permanently… an additional 30 percent restaurants might not reopen at all. The remaining 43 percent, which are closed right now, is likely to open as the situation becomes better," the Zomato report stated.

The gross merchandise value (GMV) of the rest of the dining industry is operating at just 8 to 10 percent from earlier levels, the report further added.

According to the report, nearly 60% of restauranteurs feel that they will retain less than half of their original business volumes after the pandemic clears up.

As per the report, this nosedive in the restaurant business is because many markets are in lockdown. Additionally, many consumers are not stepping out of their houses out of fear of contracting the dreaded virus.

According to Zomato, the survey was done among "thousands of restaurants and customers across various cities in India" to understand the current state and future outlook of the industry.

On 24 March 2020, the Government of India under Prime Minister Narendra Modi ordered a nationwide lockdown for 21 days, limiting movement of the entire 1.3 billion population of India as a preventive measure against the COVID-19 pandemic in India.

It was ordered after a 14-hour voluntary public curfew on 22 March, followed by enforcement of a series of regulations in the country's COVID-19 affected regions.

The restaurant business is one of many that have taken massive hits during the economic downturn brought about by the virus-induced lockdown.

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