India has the largest chain of restaurant, retailers and Multiplexes. McDonald’s, Dominos’s Pizza, Speciality Restaurants, Reliance Retail, Future Group Outlets, Spencer’s Retails and PVR have sent individual letters to the mall owners addressing that they need to force majeure passage and sought a waiver of rentals up to till May 2020 as the COVID-19 pandemic has enforced to lockdown.
Each of them has cited that they’ve earned zero revenues in urgent terms and also face a 50% drop in revenues for upcoming months. Small businesses have demanded similar terms. This majeure suggested in rare and unaccepted events, where they are unable to fulfil the contract unwillingly provoked by the external force. But this must be mentioned and specified in the original contract.
In the restaurant industry, the valuation is 4.2 lakh crore rupees, with seven million and more employees. Now they are staring at store closures, losing a job and also the erosion of profit-revenue just because of lockdown and social distancing conditions.
Restaurants and retailers overall expenses are largely
contributed to Rent and staff account. Now it is important to work with
long-term partners to find out solutions with benefits. It is expecting that
the business will earn as soon as the situation came back to the normal
situation, said by a spokesperson for Westlife Development subsidiary
Hardcastle Restaurants, operates more than 300 McDonald’s in the western and
southern part in India.