An informal group consisting of over 500 restaurants in Singapore, #savefnbsg, claimed the current government measures focused on backing the country’s overall economy are not sufficient for restaurants. As such, the group sent a letter of appeal for immediate targeted measures to Prime Minister Lee Hsien Loong ahead of the Solidarity Budget in Parliament today, Business Times reported on Sunday (5 April).
Earlier on 3 April, Trade and Industry Minister Chan Chun Sin announced that all food and beverage (F&B) outlets can open only for takeaway and/or delivery from 7 April to 4 May 2020 and people are no longer able to dine-in at any F&B outlets or hawkers, the Straits Times reported.
Following that, the Enterprise Singapore (ESG) on 4 April rolled out a Food Delivery Booster Package to support F&B businesses to transform their business models and meet the needs of digitally-connected consumers.
“With the implementation of stricter safe distancing measures, the demand for food delivery is expected to increase significantly, by as much as two to three times as compared to previous months. In the immediate term, the Food Delivery Booster Package will help manage the business costs of F&B businesses for food delivery orders so that they can stay open for business and adapt their operations accordingly,” said the Deputy Chief Executive Officer of ESG, Ted Tan.
However, the #savefnbsg group claimed the current government measures are not sufficient to support restaurants as restaurants are labour-intensive and have a limited supply of cash flow amid the COVID-19 crisis.
The group represents a cross-section of the restaurant industry from Michelin-starred eateries to large and small operators.
“The reality is that we are all in survival mode. Takeaway will, at best, make up 10 to 20 per cent of normal revenue. It’s not so much about making up lost sales anymore but just to mitigate the effects and, with whatever support and concessions we get—basically we need free rent—to plough whatever money we can back to our employees,” said restaurateur, Loh Lik Peng of the Unlisted Collection group whose restaurants include Zen, Cloudstreet, Nouri and Burnt Ends.
Although the group has been working closely with the ESG, Workforce Singapore and Singapore Tourism Board, Mr Loh said they still need to be heard.
Thus, the group has sent an urgent letter of appeal for immediate targeted measures to Prime Minister Lee ahead of the Solidarity Budget that sets to be tabled by Finance Minister Heng Swee Keat in Parliament at 2pm today (6 April).
The letter appeals for immediate targeted measures that include immediate rental rebates from landlords; remove base rent in favour of a percentage of gross turnover; increase the Jobs Support Scheme (JSS) to cover a higher rate of salaries; and support for restaurants that failed to shift to takeaway or food delivery and restaurants that had to close down amid the latest ruling that prohibited people from dining in restaurants.
Meanwhile, the Les Amis group’s chairman, Desmond Lim hopes that the Government will help to raise wage support for Singaporean and PR workers from the current 50 per cent to 75 per cent for the month in question; 25 per cent wage support for foreign employees; reduction of employer-employee Central Provident Fund (CPF) contribution for three months; and more pressure on landlords to help F&B and retail tenants.
“We live from month to month, trying to survive. But our staff have been very understanding and supportive of our need for cuts to help save jobs,” said Mr Lim.
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