Restaurant owners are asking the government to establish a lending facility for the food and beverage industry, which has been struggling to stay afloat amid the limited operational capacity, as part of their proposed revitalization program.
Restaurant Owners of the Philippines (RestoPH) President Eric Teng recently presented a list of requests for the food service sector to help its recovery, including a “restaurant revitalization fund.”
The credit facility, he said, may be offered to dine-in only restaurants, bars, cafes and kiosks with seating capacity as they were likely to be the hardest hit in the industry during this crisis.
“The loanable amount may be based on the number of employees at the end of 2019 and payable after 2023 in 12-month installments,” Teng said.
Teng said that the food and beverage industry has been finding it challenging to operate for over a year now because of the restricted business capacity.
Earlier, he shared that the sector’s transactions declined by 60 percent while the number of outlets slid by 6 percent last year because of the lockdown protocols imposed to curb the spread of Covid-19.
“No business can possibly survive on 10 percent seating capacity, and yet, we comply in the interest of public safety and to provide employment for our staff and for their family’s welfare,” the RestoPH head said.
Trade Secretary Ramon Lopez, in a message to the BusinessMirror, said that the food service industry may be able to tap the lending window for the tourism sector being part of this segment as well.
“The fund we have is good for their need. Zero interest, zero collateral,” he said, adding that restaurant operators availing of the loans are also given grace period.
The Department of Trade and Industry is offering loans to micro, small and medium enterprises via Small Business Corp.’s P5-billion Covid-19 Assistance to Restart Enterprises (CARES) microfinancing program.
Other requests
Teng asked the government to give the restaurant owners an extension to pay for their taxes, business permits and license fees without incurring additional penalties. Given the industry’s current situation, he said food businesses need more time to recoup their losses first.
“Tax season was April. During April, the restaurants were in lockdown. How can the restaurant operators be expected to come out with any cash flow to pay for their taxes or business license and permits?” he said.
He reiterated the group’s previous call to make the discounts availed by the persons with disabilities and senior citizens be considered as tax deductions.
“We also ask that any future discounts to any particular groups should not be burdened against the shoulders of the private enterprise but should be paid for the government,” Teng said.
The RestoPH requested anew for the landlords offering rent concessions or rent discounts to food service sector to be granted tax holidays. He explained this would allow the restaurants to remain functional during and after the pandemic, aiding their recovery.
Previously, Teng also asked the government for another 20 percent indoor dine-in allowance for the vaccinated population. The goal of said initiative, he said, is to allow vaccinated senior citizens to go to restaurants.
He added that quick rollout of vaccination drives is crucial for the industry’s rebound.
“We cannot go on living forever with a close-open policy declared within a 48-hour period. We have to have a runway to operate. We are providing employment and we provide benefits to tourism and national interest,” Teng stressed.