Seven out of 10 bars and restaurants are in debt, says industry association – Prime Time Zone

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Research shows that 64% of establishments promoted layoffs, with an average of 21% of employees being dismissed

Tomaz Silva / Agência BrasilOf this total, 79% owes to banks, 54% has overdue taxes and 37% has debts with suppliers

Live solidarity, delivery, change of menu: the owner of Duboiê, a traditional bar in São Caetano do Sul, in the Metropolitan Region of Sao Paulo, tried everything to save the establishment during the pandemic. In order to keep the place without closing, Valdir Junior sold the car and an apartment, but he is still in debt. “We didn’t even get 10% of the real revenue that we had before, we are still fighting to try to survive. In terms of employees, we fired this year, we fired, we had to take our money, sell a car, the apartment I had to pay the employees. Taxes we owe a lot, rent we owe a lot, some suppliers we still owe. We owe a lot, we still owe a lot, ”he says. Valdir’s case is not the only one. According to a survey by the National Association of Restaurants, 71% of bars and restaurants have debts. Of this total, 79% owes to banks, 54% has overdue taxes and 37% owes to suppliers.

The study also points out that since the beginning of the pandemic, 64% of establishments have promoted layoffs; on average, 21% of employees were terminated. ANR’s executive director, Fernando Blower, says that security and credit lines are essential for changing the scenario. “The most important thing is that we guarantee that there will be no setback. That is, that the reopening be gradual and progressive. We need to be able to reconcile economic activity with the protocols, the sector is ready to comply with the protocols, it is important that we have this guarantee of continuity. In addition, you need a credit line without bureaucracy and without the guarantees normally required ”, he explains, stressing that the recommendation is that the establishments continue to invest in online platforms and of delivery. Currently, restaurants can operate from 6 am to 9 pm in the State of São Paulo. Governor’s management João Doria increased the maximum capacity recommendation of establishments from 25% to 30%.

* With information from the reporter Beatriz Manfredini