Joburg restaurants face ruin if booze restrictions continue: property group

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Embattled restaurants in Joburg may have to shut their doors if the government extends the booze ban, property group TPN said.

Embattled restaurants in Joburg may have to shut their doors if the government extends the booze ban.

The number of tenants owing three months or more in rent increased from 7% before lockdown, to 10% in April 2020 and peaked at 19.12%, or one-in-five tenants, in September 2020. Alcohol sales account for a major portion of restaurant profits, said Dickens. While they were permitted to sell takeaways, this was not enough to cover their bills.

The Local Grill employs 26 staff and three managers. Its two owners have not drawn a salary for more than a year, said Dickens. Meanwhile, the three-year-old Turn and Tender was still struggling to pay off new business debt and any extension of the booze ban would likely see the restaurant fall further behind in its rent.

 

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