F;B entrepreneurs try to regain foothold post-lockdown

• Published date: 23 June 2022
• Publication title: Shanghai Daily

Throughout the month of June, the city has seen many of its dining establishments reopen for business. In the city's central districts, these food and beverage (FandB) locations, however, are largely restricted to delivery and takeaway services only, with some allowing patrons to occupy outdoor seating areas. Indoor dining, as of yet, is still not permitted downtown.

This development, though still not allowing for restaurateurs to return to full operations, is a welcome change from earlier lockdown days when the vast majority of businesses in the food service industry were completely shut down.

Nonetheless, business owners are still feeling the squeeze from several weeks of lockdown, managing difficulties ranging from financial pressure to uncertainty about when they can fully resume business as usual.

I spoke with several bar and restaurant owners in downtown Jing'an District to understand their views regarding the difficulties they've experienced during lockdown and since it was lifted as well as their outlook for the future in the Shanghai FandB industry.

The first and foremost concern is quite obvious -- the financial ramifications of suspending business operations for an extended period of time. Expenses still must be accounted for, including but not limited to continuing to pay part or all of employees' salaries, the loss and replacement of food items that expired during lockdown, and rent payments.

Chris "Taishan" Atwell and his wife own and operates BnC Coffee and Bar on Xikang Road. The neighborhood establishment celebrated its 14th anniversary in May, albeit during lockdown, and has long maintained a loyal customer base of both locals and expats. Nevertheless, he told me the pressure of accounting for expenses while only being permitted to do very little business in the form of deliveries is substantial.

"We have a private landlord, and therefore we have had to continue paying full rent. Obviously, there's not only a legal but a moral obligation to carry on paying our employees," Atwell said. "There are a number of families that rely on us being open, and therefore, over the time we've been closed, we've obviously made some significant losses."

His sentiments echo those of many local proprietors. Businesses located in government-operated buildings have received months of rental reprieve, but many in privately operated facilities have remained on the hook for part or all of their rental payments.

Some relief has come now that delivery and take-away...