Restaurants: on the verge of survival: a new support will be enough for a month

The program “Monetary Affairs” discussed the situation of the restaurants with the co-owner of Downtown Foodhall and Kinodeli, the acting manager of the Smetona Club Adomas Grigaitis and the owner of the restaurants Dine and Somm Arminas Darasevičius.

The interviewees mentioned that restaurants are in a really difficult situation and not all will recover after this pandemic.

Works with psychological incentives

Restaurant owners say the second quarantine was expected, so in part it was already possible to prepare for it.

“During the first quarantine, we lost three of the fourteen restaurants and invited new colleagues to their place. They already knew how to work under quarantine conditions. Second, from 22 employees, unfortunately, but we were reduced to 4 and from 4 we went up very slowly. It’s already 15 during the summer, but now it’s all down again. In other words, we worked very hard with the fixed cost base, cutting it down and giving up a lot of things, “said A. Grigaitis, one of the owners of Downtown Foodhall .

A. Darasevičius, owner of Dine ”and“ Somm ”restaurants, pointed out that to adapt his restaurants to quarantine, the whole concept must be changed.

“The places we work are too big to make food much simpler. But we are trying to do something. We did Somm in a wine shop where people can come in to buy wine with some food. We have adapted some removable foods to make it easier to make. Restaurant Dine has been preparing festive dinners for people since January. We are a little different, we are not very everyday food producers, which makes it much more difficult for us. (…) First of all, (the food – Delphi) is more expensive, it’s harder to make and when you pay more money, you want it to be very high quality. When the food comes home, it is warm, nobody wants to eat it. We are trying to apply for people to heat food to the maximum at home and get it of the best possible quality, ”said A. Darasevičius.

However, he emphasizes that the opportunity to work is very important.

“Psychologically, it is very important, we only do it to do it. There are not many people who would like to participate in such food purchases, but we get some income, we can pay for utilities, but it is more a psychological matter for us to work, talk about ourselves, show that we are You are doing something, not just sitting at home ”, – said the businessman.

“We also work more for psychological incentives, not wanting to be forgotten by customers, but it certainly does not come close to the scope of activity and quality of activity that we have when we are open and operating,” said A. Grigaitis.

Not everyone will withstand a pandemic

Interlocutors noted that some restaurants did not withstand the pandemic already, but there will be more to close the door forever.

“It just came to our attention then. We already have a restaurant that went bankrupt. One restaurant is down, it just doesn’t serve customers, others are working. It all depends on two things. On the one hand, it’s from the government’s position. and the speed with which it pays the subsidies.The second is how long the quarantine will last.

I can assure you that restaurants are on the brink of survival, on the brink of survival. Psychologically, everyone is likely to be ready to be quarantined in January-February. If it lasts longer, let’s say I don’t want it to happen, but if it lasts until May or more, I predict a very unhappy future, “said A. Grigaitis.

A. Darasevičius added that if the door could be opened only in summer, the problems for restaurants in Vilnius would not end.

“Imagine there are probably ten of us in a restaurant. It costs us both people and premises, etc. We have big problems, incredibly many: there is no income, the debt only increases. Those restaurants will close one way or another, we will watch and we will make it happen. We have to wait until the state is flexible and friendly to the situation, then we may not close, but if they say pay all the debt, you will have to close. If they don’t, but it will be possible, as is the case now, to accumulate long-term debt, it could help us and I think we will get out.

The only problem with Vilnius restaurants is that when we open very soon, summer is coming. And in the summer it is already quite difficult for us, especially at a time like this, because there are no guests from foreign countries, many Lithuanians are automatically by the sea, it is very, very difficult for restaurants like ours ”, said the owner of the restaurant. famous.

More government assistance is needed

This week, companies had the opportunity to apply to the State Tax Inspectorate (STI) and request a non-refundable subsidy. The grants are intended for those companies whose turnover from November 31 (or from the moment their activities are restricted) until January 31 has decreased by at least 30% compared to the same period of 2019-2020.

The amount of the subsidy is calculated on the basis of the personal income tax (PIT) paid by the company for 2019. It can be given:

• 25 percent of the GPM paid and / or credited, if the amount of GPM paid by the applicant for 2019 was greater than 2000 EUR.
• A grant of 500 EUR, if the GPM paid and / or credited by the applicant for 2019 is 2000 EUR or less.
• Grant of 500 EUR, from 2019 November 1 to November 30, 2020. companies incorporated in the period of 2019. November – 2020 did not receive income in January.

Restaurant owners are already counting that these amounts won’t be enough for long.

“Based on what the state has planned now, what it communicates, we have already calculated, probably like all other restaurants, hotels and other businesses. The subsidy, depending on the GPM paid, means for us that we cover the cost of one month’s rent. Alone. And it is small at least four times, in our case smaller than during the first wave. And now we are in the third month of quarantine. I have no doubt that we will be in the fourth and, God forbid, we will be in the fifth. It is up to you to decide whether the support is adequate or not.

What I would like to wish our brilliant minds in government terribly is that grant decisions are not made following the example of scammers or opaque entrepreneurs. Let us make decisions in relation to those entrepreneurs or those companies that use these subsidies in good faith and that really are the basis of survival, ”said A. Grigaitis in the program.

He added that this money is important for survival, not for profit or development.

“Our business does not have very good prospects of rebuilding everything that was in the near future and starting to work very profitably, buying back investments, but we are still optimistic that we will find some way out, not only to survive but to pay off all those debts long-term.

Certainly all Lithuanian catering establishments will not succeed. Unfortunately, but it won’t make it. There will definitely be bankruptcies, ”said A. Grigaitis.

A. Darasevičius added that this help will only help for one month.

“All that subsidy is a maximum monthly aid. Rent and so much knowledge. If it still needs to be paid in full to the level, it will be according to the GPM paid, if everyone has enough of that money. This is also a problem.

But really, you must be optimistic, we will do our best to survive somehow. We look for all kinds of ways because we believe in our activities, we believe in restaurants, we believe in what we do and we will see each other or not. It is no longer a question of whether it will be abundant or not, we will see how long we can suffer.

We can ask for anything. It would be better if, for example, the state covered the entire rent, we could live in peace for ourselves. If it covers all downtime. But that will not be the case. We need to be realistic, we have to wait and wait somehow – to try to create, to change, to try to generate some money so that we can suffer month after month, not to greatly increase the debt that grows relentlessly every month. and then watch. When better times come, try to get out of this pit.

Because now the fund is very, very close, “said the businessman and added.

He estimates that it takes around 20,000 to survive. per month.

A. Grigaitis adds, for them this amount would be about half less.

“Basically, we are not talking about a heavenly manna. All we need in our case is an allowance from which we can cover the rent, because sadly, no one has given us a rent exemption and the second thing we need is a subsidy for the workers in downtime, that is what we are already getting from the government, it is important not to miss the last day of quarantine to extend it, perhaps with less intensity, but at least a few more months after the end of the quarantine ” said the businessman.