Georgian restaurant owners offer five-point plan to PM to save hospitality sector

Georgian restaurant owners have offered a five-point plan to PM Giorgi Gakharia to save the hospitality sector, noting that the recent measures damage their businesses and it is hard for them to work only on takeaway and still fulfill their other financial obligations.

[Working just on] take away will not pay the bills  rent, lease or salaries. It is not just that the restaurant owner worries that they will not be able to run the restaurant. No, it is that this is destroying many people, employees, which are left without anything,” said one of the restaurateurs Keti Buadze.

The five-point plan includes the following measures:

• reimbursement of 50 per cent of the salaries of employees in industry by the state over the course of the next two months
• for the state to guarantee the issuance of loans from financial institutions operating in Georgia for both legal entities and individuals working in the hospitality field; for the state to guarantee the receipt of long-term, low-interest loans for restaurants, with zero-interest loans within the next two-month lockdown period, which will be used to repay employees' salaries
• reduce the VAT rate for the hospitality industry for one year
• establish a grace period for all types of utility bills for legal entities working in hospitality sector
• to extend the income tax subsidy programme for one year

The government of Georgia has imposed further restrictions starting November 28 to January 31 to curb the spread of the coronavirus in the country.

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Restaurants and other food facilities have fully moved to takeaway services which includes  takeaway, delivery and drive.