The long road to recovery
You don’t have to look very far to spot the impact Covid-19 has had on the food and beverage (F&B) industry. From notable bar closures and businesses pressing pause to the industry-wide drop in sales.
“Our business has seen a drastic decline in revenue since the outbreak,” says Nasen Thiagarajan, the CEO of Harry’s International. “Tourist-dependant areas like Resorts World Sentosa, Changi Airport and Esplanade were directly impacted and we had to close our outlets because there were simply no visitors. Before the circuit breaker, [we also] saw a drop in footfall by 50 to 70 percent in the CBD due to social distancing measures and people working from home.
Offering delivery has not softened the blow. While businesses have seen an increase in food delivery orders, this barely makes up for the overall drop in outlet sales. “Pre-circuit breaker, delivery made up one percent of Harry’s total revenue,” Nasen shares. “During the circuit breaker, there was a 400 percent increase in food delivery orders, but that still only makes up four to five percent of our previous revenue.”
“When Harry’s opens for dine-in, an optimistic result is to achieve 50 percent of what we were earning pre-Covid. This will help keep our business afloat, even though it’s not the same as before.”