Winde said restaurants relied on alcohol sales to remain profitable. “If properly licensed establishments are not allowed to sell alcohol on site, they will not be able to remain financially viable.”
This was the second such ban. The first one, which came into force when SA entered the strict lockdown at the end of March, lasted about 10 weeks, costing the industry R18bn in lost revenue and 100,000 jobs. The industry is worth about R140bn. Recently, scientists advising the government and health minister Zweli Mkhize on the Covid-19 response suggested the ban be lifted as it has achieved its objective.
The ban also threatens the future of the wine industry, a crucial sector and jobs driver in the Western Cape economy. Stats SA food and beverage data for April and May shows a decline in revenue for the sector of 94% and 87%, respectively, from 2019 revenues.
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