Sergei Mironov: “Only 50% of the restaurants will survive in the current situation”

As a part of the online press conference on the situation with the Moscow business in a pandemic, the chairman of the restaurant business of the “Business Russia” organization and the owner of “Meat and Fish” restaurants, Sergey Mironov spoke about the situation on the market.

There are 140 thousand catering enterprises, working in Moscow and having more than 400 thousand of employees. Due to the introduced self-isolation, the objects are closed, and employees cannot work remotely. In other words, they are actually left without funds. There is no money "for a rainy day" in the area, but people will continue to receive the salaries.

“March was rather bad, about 30% of income goes to the payroll fund. People have nothing to pay even for March. The waiters were getting paid daily, but now people are on the street,” the Ombudsman reported.

Sergei Mironov also recalled the government’s measures to pay unemployed benefits in the amount of 19,500 rubles, but he added that it is necessary to give compensation not only to the unemployed, but also to those, who went on unpaid leave. Enterprises are trying to keep employees, but according to this logic, people need to quit in order to get at least some money. Mironov is sure that this measure needs to be corrected to help the employees to retain employment.

The speaker also mentioned the conflict between shopping centers and tenants. If we consider Moscow, then on the outskirts of the city, renting a room for a restaurant can cost about 100 thousand rubles, while in crowded places the rental price can reach 4 million rubles. It turns out that the tenants actually pay for the number of people, who can potentially visit their place. Now, when there are no people, it makes no sense to pay huge rent money.

In this situation, the introduction of force majeure, approved by the government, can help. The agreements always prescribe the possibility of force majeure, in case of which the rent should not be charged. However, Sergei noted that there are shopping centers that agreed and removed the lease, and there are those, who refused to do it and said that they also have obligations, and therefore the rent will remain.

“I had the same problem with MEGA shopping center,” the speaker said. – Its representatives refused to consider the force majeure circumstances and forced to pay rent. I reported to the media and then they contacted me from MEGA, asking for a rebuttal, and in return offered to not pay the rent. I refused and as a result the rent was canceled not for me alone, but for everyone.”

Sergey Mironov also raised an important question for the further development of the restaurant business. He noted that institutions need investment, and investors need confidence in the future, which is not possible to have now. Investors do not want to lose their money and do not invest in restaurants that, in their opinion, will still be closed. Mironov explained that in order to avoid this situation, VAT for public catering should be lowered to 10%. Then investors will see the money and will not be afraid to invest.

As for the transition of restaurants to food delivery, the speaker noted that only those who were engaged in delivery before will succeed, as the couriers, cars, adapted kitchens are needed. However, even at such establishments, delivery did not increase, but fell by 30%. If we consider those who switched to delivery just now, then, according to Sergei Mironov, they will not succeed because of not adapted kitchens or unprepared guests.

“Now they will play with the idea of delivery and everyone will close in a week. If the restaurant has not been prepared in advance, the kitchen has not been prepared, nothing will come of it,” the expert summed up.

The editors of “Rusbankrot” asked how many restaurants will be able to survive in the current situation and reopen, when there is an opportunity. The speaker said that in the current situation, this figure will not exceed 50%.

Read more about the measures that were taken to save the restaurateurs and hoteliers, in our special material.