the opening of restaurants will not solve the problems created by the pandemic,”
Levan Kokiashvili, head of the Gastronic Association of Georgia, says.
According to Kokiashvili, the first challenge is the epidemiological situation,
which may be complicated after the opening of the economy but the restaurant
business expects very tough times due to purely economic reasons.
“The restaurants are facing 5 main changes such as taxes, bank obligations, rent, utility bills and price hikes for services. Opening of restaurants is planned on June 8, but what will happen next? The first we should do is to cut our costs, including rental expenses. Restaurants are in talks with the owners of the premises to explain to them that in the near future they will not be able to pay the same amount as before the crisis, ” President of the Association notes.
He believes the state should support the restaurant business by providing with tax benefits, as well as subsidies and gives an example of Germany and Italy, which distribute small amounts to the population to boost domestic tourism and visiting restaurants.
Kokiashvili doesn’t exclude the cost of dishes will increase by 30% due to increased
will rise, but consumers will not be able to pay. We should try to reduce the
cost of services as now we are
completely dependent on local consumers many of whom are left without work and any
income. Amid increasing food prices, growing expenses of the population it makes
no sense to open restaurants, ” the head
of the Association explains.
According to him, the lack of foreign tourists will be a big problem for the sector as tourists were the main clientele of restaurants.
An additional item of expenditure will be epidemiological safety measures,
which will be a prerequisite for opening restaurants.