Pune: Many shops, food outlets in malls can stay closed | Pune News

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Distinct SOPs and social inputs signals at Pavillion mall, Pune

PUNE: If malls throw open their doors following a four month fracture on Wednesday, clients may find almost half of the retail shops closed.
Resources stated an continuing dispute involving mall owners and retail shop owners over problems like lease waivers along with a lack of feasibility has been the primary reason.
Additionally, almost all of the restaurants in malls (excluding global chains) can also opt not to start as just home deliveries/takeaways are allowed, using dine-in service banned in the most recent order.
“There’s a debate between mall owners and merchants over lease for the previous five months,” a mall owner verified to TOI. “Some malls have thought part of the lease, but some haven’t. Some retailers have been adamant that they wouldn’t open unless they’re granted a 100% lease waiver, but some have vacated their stores,” the mall owner further said, adding that almost half of the retail shops in malls may remain closed in the first 15-20 times of reopening.
This is a double blow for restaurants, using limited operations without any relief from lease, sources said. “The leasing system in malls for beverage and food (FnB) outlets operates on a minimum-guaranteed lease and revenue-share foundation. Food outlets also will need to pay the mall direction common area maintenance fees,” the agent of a favorite eatery chain clarified, including”While chains and malls inside were closed during lockdown, the direction continued to bill full/ part rent and also a diminished common area maintenance fee.”
A mall worker said he didn’t anticipate all food outlets in malls to start due to the continuing limitations. “Outlets which are more ambience-oriented and reliant on liquor sales won’t open as just takeaways are permitted. Our mall includes 60 FnB sockets, such as food courts, restaurants, kiosks, cafés and pubs. Just half may start,” he explained.
A source said the entire notion of a food court at a mall was a dine-in experience greatly dependent on ambience; deliveries throughout aggregators were few. “Running only on takeaways won’t be sustainable for food outlets, particularly as the mall direction provides the outlets no fiscal aid,” the source stated.
Kishor Sarpotdar, owner of Poona Guest House, that has a franchisee at a mall, stated high rent will discourage many food outlets out of launching. “On an average, a food outlet pays a minimum monthly rent of Rs 2-2.5 lakh. With just takeaways enabled, our earnings will probably be minimal while costs will stay the same,” Sarpotdar explained.

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