NRAI writes to mall owners to waive off rentals during lock-down
The National Restaurant Association of India (NRAI) has urged mall owners across the country to waive off rentals during the lock-down period and renegotiate commercial terms going forward.
NRAI has written to mall owners to urgently resolve commercial concerns of food and beverage retailers, whose business has been hit very hard by the pandemic.
“The mandated lock-down has forced us to shut shop and prevent the malls to allow entry to our guests, staff or suppliers. This is a clear case of force majeure and therefore all charges of rentals or common area maintenance for the duration of the lock-down needs to be waived off entirely,” it said.
“The engagement contours in the post-Covid era need to move towards a totally variable model. Such revenue-share model will ensure that the fortunes of both parties, i.e., the restaurants and the malls are firmly inter-linked. This will ensure that neither parties stand to profiteer at the cost of the other,” it said.
Retailers and restaurants owners have been in talks with mall owners seeking waiver on rentals and asking for rentals in future to be based on a revenue-sharing model as they stare at an uncertain demand environment.
Restaurant owners have been seeking financial support from the government for the industry that employs 7 million people.