Restaurants: Surviving Restrictions Challenge

In Costa Rica, the new commercial reality requires restaurants to operate with a capacity of 50%; however, since they maintain the same level of fixed costs, the losses of this sector could exceed 20%.

Wednesday, August 5, 2020

For more than four months, when the first cases of covid-19 were reported in the country, consumers have been subjected to severe restrictions on mobility and restaurants were forced to operate in conditions unfavorable to their finances.

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The slogan of the employers is to resist, until such time as health conditions allow a return to the income levels recorded prior to the outbreak of the disease.

In the meantime, restaurants are busy complying with restrictions such as operating at 50% of their capacity.

The firm Vargas Vargas & Asociados, made a study based on a restaurant that reports an average consumption per person of $ 8.5, with an average of 100 chairs and a profit margin of 19% before the pandemic.

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Guillermo Vargas Siles, managing partner of the firm, explained to Crhoy.com that "... If we consider that this restaurant maintains a capacity of 50% and maintaining the same level of fixed costs, the restaurant shows a 21% loss."

According to Vargas Siles, these estimates should help the authorities to establish the necessary measures for the companies to reach their break-even point, actions that could be focused on reducing social and municipal charges, labor salaries, decrease of payments for public services, among others.

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