Abstract:
This paper focuses on the challenges faced by the speciality restaurants to retain their employees. Since the first Corona infected patient was detected in March in Pune city, it has had a major impact on the restaurant industry. The lockdown has severely affected the restaurant industry across the country which provides employment to thousands of people.The COVID-19 pandemic is likely to cut 40-50% revenue earnings in Indian organized and non organize drestaurantsector in this financial year. Restaurant business in India is estimated at 4, 23865 crore and employing more than 700,000people according toNational Restaurant Association of India. According the Anurag Katriar, President of NRAI (National Restaurant Association of India), layoffs in the restaurant business is inevitable as restaurants are seeing minuscule cash flow. Nearly 50 percent of the restaurants have been hit and if the lockdown continues then the situation was bound to get worst. In the restaurant business 50 percent of revenue is used to cover the fixed costs, in this situation there is zero cash inflow, due to that owners have to pay from own pocket to sustain as well as to retain the employees.
With the low demand and social distancing norms Restaurants are taking a lot of efforts to keep business afloat. This poses as huge challenge for Restaurant owners to retain the staff in this pandemic. New strategies need to be implemented for the same.
