Restaurants' profits still plummeting despite popularity of takeaways, says association

May 6, 2020

President Mike Egan says the downturn in sales in lockdown has left many struggling to stay afloat. (Source: Other)

The Restaurant Association is asking for more clarity from the Government about how restaurants can get back up and running under Level 2 with the current strict restrictions leaving many “haemorrhaging" money.

According to figures released by ASB, Kiwis ate five weeks’ worth of takeaways in the first week of Level 3. However, Association President Mike Egan says it’s barely scratched the surface of problems they’re facing with many restaurants not set up for this model of business. 

“Restaurants aren’t really designed for the massive takeaway business. A takeaway is quite a different business model,” he told TVNZ1's Breakfast. 

Around 90 per cent of hospitality businesses are struggling with a huge drop in sales says Mr Egan, with most left hanging out for Level 2 to get business going again.

He says the current restrictions mean restaurants are struggling to make any profit while running at a limited capacity.

“Everyone is haemorrhaging, no one will be making money. There are some that are lucky to have landlords who see their tenants as a long term venture and can give them a break at this time but others aren’t so lucky.” 

Mike Egan says they’re asking for aid from the Government to help businesses pay their rent as many are struggling to keep their heads above water.

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