1000 RESTAURANTS OF ST. PETERSBURG MIGHT BE CLOSED DOWN DUE TO THE RESTRICTIONS

Real estate market analysts from the Best Group forecast the closure of about 1000 catering establishments in St. Petersburg. The main reason for this may be the anti-epidemic measures introduced by the authorities of the northern capital to counter the spread of coronavirus infection.

According to the head of the “BestЪ.Commercial real estate" company Stanislav Stupnikov, at the moment, about 5200 restaurants and cafes are working in the city. About 400 catering establishments are temporarily closed and, according to forecasts, more than half of them will subsequently be completely liquidated.

Around 480 restaurants have already ceased operations since the beginning of 2020.

Experts express concerns that the "anti-covid" measures, reintroduced by Smolny until January 15 due to the threat of the spread of the disease, may permanently disable a significant number of restaurateurs who do not have the financial ability to continue working in the public catering market. According to the order of the authorities, the activities of restaurants are completely prohibited at night - from 23 pm to 6 am. This means that the residents of St. Petersburg will have to celebrate New Year at home.

During the BestBreakfast business breakfast on November 25, representatives of the Best Group noted that catering establishments serving city residents and guests at affordable prices became the main targets for the pandemic's impact on restaurateurs. Canteens, street food cafes, and specialized vegan restaurants were closed down.

Although 165 restaurants and other catering establishments have emerged in St. Petersburg since the beginning of the pandemic, most of them (about 90%) have appeared in places where previously there were other establishments that were liquidated or ceased operations.

Previously, the industry experts have already stated that new restrictions that might be introduced by the authorities are likely to cause the liquidation of 85% of companies working in the catering sector. As the CEO of Kravt Invest, Valery Kravtsun, noted, a complete lockdown will lead to the inevitable collapse of many market participants, thereby hitting the economy of the region and the country as a whole.

According to the statistical data published by the representatives of Petrostat, during the period from January to October, catering market of St. Petersburg lost 29% of its usual turnover. In comparison with the capital market, where the turnover fell by only 18%, this is a rather serious reduction in the economic development of the city. If the new restrictions are fully implemented, the market will shrink by 35%, and the total revenue of catering organizations will not reach 65 billion rubles.