Restaurateurs in Russia Lose 30% of Food Suppliers Due to Pandemic

Russian restaurateurs have lost almost a third of their food suppliers, President of the Federation of Restaurateurs and Hoteliers Igor Bukharov told a video conference held by TASS on current problems in the field of tourism and hospitality on Monday.

“We have lost about 30% of the companies that supplied products, this is very serious for us,” Bukharov said, adding that those enterprises had left the market. According to Bukharov, new suppliers often face problems related to the refusal to grant a deferred payment. In addition, replacing old products with new ones implies updating the menu, which carries the risk of losing regular customers.

He also noted that only a few Russian restaurants were able to reach a profitable level after the pandemic restrictions were lifted. “We talk with our colleagues, they say that there are restaurants that are already out of the red, but there are very few of them. Basically, everyone, unfortunately, cannot attain the percentage of last year’s turnover needed to even things out,” he said.

The catering sector is on the Russian government’s list of the most affected industries. Small and medium-sized businesses from the affected industries during the pandemic could count on a deferral of rental and tax payments, excluding VAT. In addition, a moratorium on the bankruptcy of such companies was introduced and special credit programs were launched. Regional authorities took additional measures to support business.

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