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Sunday, October 6, 2024

Restaurant chains and food delivery platforms seek ‘essential’ status amid G20 closures

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Food delivery platforms, restaurant chains, and food service companies have urged the government to classify deliveries as “essential services, similar to those during pandemic lockdowns,” ahead of the G20 summit.

The government has announced that New Delhi will be designated as a “controlled zone” along with a series of restrictions and closures.

“Food and groceries are essential services. These deliveries were permitted even during Covid-19 lockdowns. From a consumer convenience perspective, it will be helpful if the government permits these services in compliance with guidelines,” said Dinker Vashisht, vice president, public policy, at food delivery and aggregator platform Swiggy.

In accordance with a public notice released by the Delhi government, all employers operating shops, commercial, and business establishments in New Delhi are required to shut down their operations from September 8 to September 10.

“Various government departments and ministries had been engaging with hospitality companies for the past many months with the objective of providing good experiences to guests during G20,” said Prakul Kumar, Secretary General of National Restaurant Association of India (NRAI), which represents 500,000 restaurant companies. “We were looking forward to it. But with complete closures leading to losses, at least deliveries should be permitted. We have no clarity and no guidelines on the matter so far.”

Executives have mentioned that the G20 long weekend, officially declared as a public holiday by the Center, is resulting in an increased number of people leaving the town, which is expected to have an additional impact on sales.

In a letter addressed to the Delhi government, the NRAI said, “Food delivery from restaurants may be permitted as part of essential services as was also done during the Covid-19 pandemic. This will help in mitigating to some extent the business disruptions and losses faced by industry due to the closures and restrictions.”

The G20 Summit is set to take place from September 9 to September 10, and it will witness the arrival of numerous world leaders in the capital.

While Delhi Police has said there is “no restriction on movement of essential commodities coming through Delhi borders”, it has not given any directives on allowing food deliveries. Traffic police has cautioned commuters that they may experience more-than-normal traffic on select roads, advising citizens to avoid such places during specified periods.

While groceries may be classified as essential services, executives said food delivery platforms will suffer the most in terms of loss of business opportunity.

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