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Turnover drops by 80% in taverns, by 60% in cafes despite restrictions lifting

One in four restaurants and night entertainment facilities such as bars across Greece did not opened again in the first week of restrictions lifting. The majority of restaurants, taverns and bars that remain close are on the islands. At the same time, prices remain at the previous level, despite the government decision to reduce Value Added Tax form 24% down to 13%.

Most businesses that have not opened are restaurants and taverns or are located on the islands

At the same time, the turnover of catering businesses decreased to… inconspicuous depths, by even 80%. Reason for Greek to remain away from taverns and other facilities is not only out of fear to contract the coronavirus. There are also other factors such the the bad, rainy weather and uncertainty about the household finances in the near future, as many employees are still in “superseded labor” with a few hundred euros state aid and no money to spend.

All these was reported to daily ethnos, by the president of the Panhellenic Federation of Restaurants, Giorgos Kavvathas, who, however, expressed optimism that the situation will improve in the coming days and given that the weather will improve.

Worth noting that taverns, cafes and other catering facilities are allowed to open since May 25, however, they can operate only their outdoors sections.

25% -30% of the facilities remain closed as they did not meet the specifications to open again, they either do not have outdoor space or they operate seasonally, that is in touristic areas, while no tourists are allowed in the country yet.

“The percentage of operating catering facilities has reached 70% -75% nationwide and this creates a restrained satisfaction, given the current situation,” Kavvadas said.

The problem is bigger on the islands, where, if the planes don’t land, I don’t think our stores will open. he added.

Drop in Turnover

There is a huge drop in turnover in restaurants and entertainment stores in the first week of their reopening. It is characteristic, in cafes and bars and in relation to the corresponding period last year, the reduction of turnover on a weekly basis ranged between 50% -60%, while in taverns and restaurants it reached 80%, Kavvadas said.

Turnover decrease in taverns and restaurants on weekdays has reached even 95%.

“Restaurants that used to feed 300 people every day, had no more than 12. Other companies did not serve more than 2-3 people per day,” Kavvadas noted.

He added that despite the reduction of VAT in the sector, a measure that was launched on June 1, entrepreneurs are not going to reduce prices.

“In my opinion, there will be no reduction in prices in our industry, with the exception of some individual cases. When VAT went up in 2016, we kept prices stable, and absorbed the increase without passing the extra charge to the customers,” Kavvadas stressed..

Meanwhile, also the Hotel industry is not flourishing with only 20% of all-year hotels to have opened since they were allowed to on June 1.

80% of hotels remain closed due to lack of bookings, Skai TV reported on Tuesday noon.

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