The cost of dishes in restaurants  will hike by 30% due to increased food  prices

The cost of dishes in restaurants will hike by 30% due to increased food prices

access_time2020-05-27 10:00:09

 

“Only 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.


Levan Kokiashvili doesn’t exclude the cost of dishes will increase by 30% due to increased food  prices.

“Prices 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.


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