The spirit of SURVIVAL

Restaurants are the face of the hospitality and tourism sector, a vital cog in KZN’s economy that has been hit by the pandemic, but must survive, writes Shirley le Guern and Shelley Seid

The sector has been whacked by liquidations, and job losses are the order of the day. Many hospitality businesses that were trying to eke out a living in the flailing prepandemic economy at the beginning of the year, were completely knocked by three months of lockdown.

But for every tale of misery in the sector, and there are countless others to counter that, there are stories of extraordinary resilience. People in the trade are immersed in a valiant fight to stay afloat, deftly re-purposing and clawing ahead to keep their businesses ticking over.

There are many stories of this courage in the feature that unfolds, but perhaps the attitude is best reflected by Marcelle Roberts, the famous Durban chef who owns Cafe 1999 and Unity with her husband Sean.

“I haven’t stopped since the start of lockdown. We are fighting to stay alive. I have been in the kitchen since day one and my waiters are doing deliveries. We have embraced the changes or we won’t survive.”

Roberts says the fact that their businesses have kept moving has kept their spirits up and those of staff, loyal customers and suppliers.

Unity is open and is also pushing deliveries through a variety of platforms. And Roberts has also thrown herself into a pre-prepared meal business with Dominic Barberi whose Seafood Enterprise did a quick pivot from supplying restaurants.

“We’ve just kept pushing through … kept moving … and are getting busier every day,” Roberts told KZN INVEST.

The Restaurants Association of South Africa (RASA) predicts many of the 800 000 people working in the hospitality sector (a considerable chunk in KZN) will be jobless before the year is out.

RASA member Natasha Sideris, the owner of Tasha’s chain of restaurants, was quoted in Daily Maverick saying half of South Africa’s 13 000 restaurants countrywide could close, with a huge effect on an entire supply chain from small farmers to catering supply companies.

Landlords with outstanding rentals and lost tenants will suffer, too.

Some establishments – when safety protocols are as long as menus – are confident their strong branding will tide them over and have elected to remain closed. Their logic: spiralling operating costs, narrow margins, high levels of debt and low volumes, means little point in trading for the sake of it.

The huge cost of constant sanitising just to open is too much. Reducing table numbers by up to 30% to meet social distancing requirements, while waiting to see if customers feel safe enough to return to a restaurant, means volumes aren’t sufficient to sustain some businesses.

Kitchens need to be stocked to serve all items and, even with muchreduced menus, expired food adds to losses. And for many upmarket establishments, another roadblock is the ban on serving alcohol with meals.

“I don’t know about you, but if I spend R350 on a meal, I expect at least one glass of wine with that,” said Howard Preece, head of Fedhasa’s East Coast division.

He said an expensive meal and a good glass of wine were a bouquet that came together and many restaurant owners feel it is not worth the expense of opening or bringing back staff.

FACT BOX

▪ According to Stats SA, in 2016 the South African restaurant, fast-food and catering sector generated annual revenue of R57-billion.

▪ The restaurant/coffee shop segment generated just over 51% of the sector’s total income.

▪ The food and beverage industry’s income decreased by 29% in March 2020, the start of lockdown.

Preece said for the next few months at the very least, the outlook for the restaurant industry was discouraging. Confusion surrounding whether or not leisure travel is permitted and strict curbs on international travel are likely to remain for some time, so Preece said those catering primarily for tourists and those in remote destinations will be hardest hit.

“From next month I see thousands of people being laid off until we reach the next level,” he said.

MAIN IMAGE: MARCELLE ROBERTS, THE FAMOUS DURBAN CHEF WHO OWNS CAFE 1999 AND UNITY WITH HER HUSBAND SEAN.

ABOVE: SADHA NAIDOO, OWNER OF CALIFORNIA DREAMING ON THE BEACHFRONT.

At the same time, Preece said he understood that government was caught between a rock and a hard place. Pubs, restaurants and shebeens pose a high health risk if not meticulously managed.

Preece added that those most likely to survive the continued punitive pandemic regulations were fast-food outlets and those providing a take-out service and coffee shops.

“Then again, it depends on the size of your war chest, so I just don’t know. Restaurants have a very poor outlook at present. Some will survive and some won’t.”

What does provide some hope is that both independently owned and franchised restaurant businesses rely on entrepreneurial owners who constantly face challenges.

Roberts said customers were simply changing their habits. “We are delivering meals to customers at home where they have set the table beautifully – and want me to bring fabulous food.”

In a recent presentation, global entrepreneur Richard Branson predicted restaurants had to adapt or close, in response to consumption and socialisation changes. He was quoted saying there had been a 300% increase in USA take-aways as a result of Covid.

Sadha Naidoo, a veteran of the KZN tourism industry and owner of California Dreaming on the beachfront, said most restaurants relied on the sale of both alcohol and food, so banning the sale of liquor at eateries impacted heavily. He said a host of factors influenced business viability, including customer confidence, and recovery was not simply a case of re-opening restaurants as restrictions are eased.

Grace Harding, CEO of Ocean Basket and head of RASA is optimistic that, in the longer term, many South African restaurants will follow their counterparts in countries like Mauritius and Australia where restrictions are easing up.

It won’t be long before South Africans, she said, will get used to the discomfort of going out wearing masks and queuing, and will hang up their braai tongs and salad servers in favour of a special night out.