Several districts, including Futian, parts of which are still locked down, have introduced multiple relief measures from rent reduction to financial subsidies to help enterprises survive under the pressure of the pandemic.
The catering industry is one of the sectors that have been hit hard due to recent COVID flare-ups.
Buda is the owner and chef of two high-end Western restaurants, called Le Stelle, in Nanshan and Luohu districts. He told Shenzhen Daily, “It is extremely hard for us to survive. Our revenue was slashed by 70 percent compared to pre-pandemic levels, despite the fact that I have reduced working personnel by half and didn’t recruit any one this year.”
Apart from a drop in individual guests, all corporate parties, wine tasting and gatherings have been canceled. “During the 10-day lockdown, all fresh foods were wasted, yet I must pay my employees’ basic living costs. The store lost 10,000 yuan (US$1,569) to 20,000 yuan every day,” Buda said.
Riccardo Romboli, co-owner of Shark Group in Shopping Park, didn’t want to reveal too much about the operation situation of their group’s restaurants, yet admitted that their loss is “a lot.”
Due to the lockdown, the restaurant has been closed since March 3 and their other bar in Shopping Park, called Red, was closed even before its scheduled opening date.
“We didn’t reach a rent agreement with the landlord, but we are still standing strong and keep thinking positive,” Romboli said. “We always see problems as a challenge and don’t cry about what’s happening. With support from the government, our team, shareholders and landlord, I am sure we will win this fight very soon.”
Futian District announced a relief package consisting of 10 policies March 20, the day before the lockdown was lifted, for companies that are confronted with labor shortage and expensive rents.
Futian enterprises, particularly those in the catering, culture, tourism and cross-border transportation industries, can apply for government assistance in terms of rent, financial subsidies and loans, among others.
Companies renting properties owned by either the district government or district-owned enterprises are entitled to rent exemption in March and a rent reduction of 50 percent in April.
Private landlords are also encouraged to cut rent for their tenants, especially small and medium-sized enterprises.
Kingkey Banner, an operator of several main shopping malls in Futian District, like KK Mall and KK One, told the reporter that they are mulling over detailed relief measures for tenants to reduce their losses after receiving the government notification.
“As many of the malls we are operating are still closed, we will communicate directly with tenants when they reopen,” said a company employee who declined to be named.
As per the relief package, the Futian government will provide monetary support of up to 1 million yuan to each catering enterprise.
Meanwhile, Longhua and Bao’an also issued district-level economic relief measures. Bao’an is making efforts to ensure the normal operation of key enterprises, supply chain companies and those related to essential services and food.
Longhua is offering financial subsidies and tax reduction, as well as helping solve labor supplies for cross-border transportation, construction projects and other key sectors.