Why 80 Percent of Bars in São Paulo Have Remained Shuttered
RIO DE JANEIRO, BRAZIL – The bars and restaurants of the city of São Paulo were authorized to reopen on Monday, July 6th. Despite the authorization, 59 percent of the city’s food and beverage businesses decided to remain closed. Among bars, as many as 80 percent have decided not to reopen. The main reason for not reopening is the rule permitting bars and restaurants to stay open only during daylight hours – they must close by 5 PM, just before sundown during Brazil’s winter.
A survey conducted by the São Paulo Bar and Restaurant Association (ABRASEL-SP) between July 6th and 7th shows that reopening operations exclusively between 11 AM and 5 PM is not feasible. In addition, 55 percent of the businessmen surveyed reported that the ban on sidewalk tables, established by Mayor Bruno Covas on Saturday, July 4th, hinders business.
Bruno Bocchese, owner of the bars Cama de Gato and Fel in downtown São Paulo, is one of the businessmen who decided not to reopen right away. The limited hours make it difficult to operate, has his customers come predominantly at night.
The businessman also fears that the public is still uncomfortable to come back, which could result in additional losses. “If my fixed costs are high when closed, they’ll be even higher once we reopen,” he says. Meanwhile, he is making the required physical distancing adjustments for reopening and waits.
According to the ABRASEL, the city’s bars and restaurants’ plight is worrisome. Over half of the businesses are working with less than 60 percent of their staff before the pandemic started in March. Among those who consider rehiring, only 16 percent say they could have the same number of people as before.
In all, the association estimates that 20 percent of businesses in the sector nationwide will close permanently as a result of the economic crisis and the difficulty in accessing credit.
Source: Exame
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