On 16th March, restaurants in Malta, along with bars, cinemas gyms and casinos, were ordered to close their doors to the public as the country was in its second week of registering COVID-19 infections.

While restaurants were still able to serve clients on a take-away or delivery basis, and companies stepped up to deliver food for restaurants which did not previously offer a deliver option, economic activity had begun to grind to a halt.

Around two months into the pandemic, with people encouraged to stay indoors and thousands of people remote-working, businesses which have been ordered to remain shut have had to make hard decisions on cost-containment measures while trying to retain staff.

As Government business aid measures started to be disbursed, and the number of new COVID-19 cases begins to subside, the conversation has now shifted to when social distancing measures could be lifted.

Further to this, while the prospects of leisure travel seem far off (a commercial travel ban is in place for the foreseeable future), questions are raised about whether local restaurants, bars and hospitality businesses can be propped up by the economic activity generated by the local population.

Speaking with a veteran in the local restaurant community, Julian Sammut, the Director of Kitchen Concepts, weighs in on the conversation.

Kitchen Concepts, launched in 2008, brings together the following popular local restaurants: Chophouse, Cuba, Gululu, Manakis and Vecchia Napoli.

Asked about whether he thinks local demand will be enough to keep restaurants going when social distancing measures are eased, Mr Sammut said that depended on two main factors – the size of the operation, and the location.

“Restaurants in heavily tourist dependent areas, such as St Julian’s, Qawra, Bugibba and others, see their custom made up of up to 80 per cent tourists in the peak months.

“For our restaurants in the tourist dependent areas, we are extremely concerned. It is doubtful that we will get the volume required to sustain these”.

Turning to restaurants with traditionally Maltese custom, he said the situation will not be so straightforward.

“Everyone is going to be highly wary when we eventually come out of this. When you have stayed inside for so long, I think many will feel almost strange to be outside among people,” he said.

“Will everyone feel so comfortable to mix with each other?”

Adding insult to injury, because of the unfortunate job losses, salary reductions and general economic uncertainty “many will have less money to spend.”

Mr Sammut added that even those who are more financially stable are likely to be more cautious about where they spend their money.

“We are also worrying about a second wave of infections, which we fear may hit us sooner or later, so I do not think there will be some switch and things go back to how they were before.”

Turning to issues surrounding differently sized restaurants, he said the bigger the business, the more worrying the situation.

“It depends on how many people are dependent on the restaurant and whether a large operation can manage to keep costs down.”

He also highlighted that, once restaurants are allowed to reopen, several measures will be taken to safeguard public health and safety. For instance, tables would have to be spaced further apart, and hygiene practices stepped up, as a result of which the restaurant’s turnover will be limited.

Asked about whether local demand physically in restaurants – with social distancing measures in place – together with take-aways and delivery, would be enough to prop up most restaurants, he said that the latter can only take you so far.

“People like to order meals over the weekend, however during the week this happens less. As mentioned previously, people are being careful about how to spend their money.

“The vast majority of outlets will not survive on take-out and delivery alone”.

Here, Mr Sammut stressed the importance of restaurants reinventing themselves.

“With people being careful on how to spend their money, menus have to be adapted to the realities of today. People are going to be that much more cautious about value for money, this means restaurants will have to have a re-think and reinvent themselves.”

He believes smaller, family run restaurants are best positioned to contain many expenses, especially with family members pitching in to help when needed. “For others, it will be tough,” he added.

Turning to what can be done at a Government level to help the restaurant industry, Mr Sammut says that the support given to businesses via wage subsidies and other measures should remain in place to a degree until the economy returns to some level of normality.

He joined a chorus of voices in the business community who say this is the only way to avoid redundancies and the closing down of establishments.

Speaking about his personal situation, he conceded that without the state aid measures, as well as support from several landlords of the various restaurants under Kitchen Concepts, with some flatly not charging the company rent, he does not see how the restaurants would survive.

He proudly admitted that thanks to this combination of support, Kitchen Concepts has not made one redundancy so far.

“Things are not going to go back to 100 per cent of what they were in 2019. They will go back to 50 per cent, and 75 per cent and so on.

“After the economic crash of 2008 it took almost four years for things to get back to normal, hopefully it will not take as long this time round.”

He added that “helping businesses to stay open means that they will keep people in employment and generate revenue which goes down the supply chain and also back to Government in terms of VAT and national insurance contribution, for starters.”

Ending his commentary on a positive note, Mr Sammut highlighted Malta’s “incredible knack for surviving,” with the island having overcome several hurdles in previous wars and economic slowdowns.

“Hopefully, this trait of survival will continue to serve us well. We must all keep working closely together”.