Several Restaurants In Tamil Nadu Are Up For Sale As An Effect Of The Pandemic

Several restaurants have been put up for sale in Tamil Nadu, and many have closed in the span of three months after the second wave of COVID-19 hit the state and deteriorated the situation.

According to sources, the data is still being compiled, and the final figure won't be known until the lockdown is removed fully. However, real estate experts claim that other eateries in Chennai, Coimbatore, Salem, Tiruchi, and Madurai, among other cities, have put themselves on the market. After the first wave hit last year, a similar pattern emerged. The hotel industry then reported that over 2,000 small, medium, and large eateries had closed.

According to a hotel industry source, as rumors of a third wave are circulating, individuals in the industry are not willing to take any chances. Some of the properties for sale are located along state and national highways, while others are located near schools and colleges, as well as information technology corridors. Those who have taken franchises from larger brands are likewise having trouble selling.

He went on to say that restaurants near movie theatres and other public places had permanently shuttered.

Sukanya Bhaskaran, who owns a fried chicken franchise on Santhome High Road, said her company had dropped by more than 90% and she had no choice but to sell it.

Sukanya Bhaskaran, who owns a fried chicken franchise on Santhome High Road, said her company had dropped by more than 90% and she had no choice but to sell it. Her staff went in the first wave and never returned back. The landlords put a lot of pressure on them because the rent didn't get many orders through food aggregators because sales were low. As a result, survival and running the restaurants further became a tough task for them.

One of the owners stated that the cost of labor has increased, according to restaurant owners. It's tough to keep staff if you don't pay them. Even larger businesses appear to be struggling in the aftermath of the second wave, and some have closed a few locations.

Many small hotels had departed, according to M. Ravi, president of the Chennai Hotels Association and chairman of Vasanta Bhavan Hotels India, and there were no takers for the spaces that had been available for sale.

Meanwhile, the majority of hoteliers and restaurant operators warned that now was not the time to buy hotels that were up for sale. They predicted that the industry would take another year or two to stabilize.