The bar industry continues to count millions in losses since the COVID-19 pandemic hit T&T in 2020. Bars were among the first sectors to close and now, in 2021, they are among the last sectors to reopen. Tomorrow at least 50 per cent of bars are expected reopen amid a host of restrictions.
President of the Barkeepers and Owners Association of T&T (BOATT) Satesh Moonasar estimates the losses at $400 million and described this period as one of the biggest crises the bar industry has faced in its history in T&T.
He said many bars have been forced to close permanently leaving thousands jobless and creating hopelessness among lower-income people in the country who earn a living through this industry.
"This is a billion-dollar industry. Just look at taxes alone, and fees such as liquor licences, PAYE taxes, Green Fund Levy tax, gaming taxes and other obligations, this adds up to $1 billion annually. That’s how much the bar industry contributes to the economy.
"I would say the bar industry lost roughly $400 million since March 2020 and this is based on closures and restrictions. There were eight months of full business closure with no income."
He said, speaking with members of BOATT, "actual losses would be things like rent and utility as these would still have to be paid, although bars were closed. As well as expired goods as most companies do not take returns of expired goods. Also, add in the loss of sales and you get that figure."
The Government will launch its Safe Zone initiative in which fully vaccinated members of the public would be allowed to partake in specific activities on October 11.
Tomorrow, gyms, cinemas, dine-in services at restaurants, and a host of other entertainment-related activities will become available to the general public once they are fully vaccinated against COVID-19.
BOATT expects 50 per cent of bars to reopen.
Moonasar said the restrictions on the bar industry first started in March 2020 as they were one of the first sectors to be placed under restriction. They were closed from March 17 to June 21, 2020. From June to August 16 they were allowed to reopen but with restricted hours. From August 17 until April 29, 2021, bars were then allowed to just sell alcohol as grab and go. From April 30, 2021, until October 10, bars were closed.
The Rustic Union Bar which has been closed because of COVID-19 in Rio Claro.
CRISIS PERIOD AND REOPENING
Moonasar said at the start of the pandemic in 2020 there were about 2,800 registered bars in the country.
He estimates that almost 40 bars closed permanently and added that many more bars faced financial difficulty but the original owners simply sold them off to new owners.
He also estimates that 4,000 employees of bars lost their jobs since the first restrictions began in 2020.
"This was a very painful period. It will take another two to three years for the industry to recuperate from this situation. Although the doors of the bars will be opened on Monday, it is still not business as usual."
He explained that even when they restart operations, customers will not be able to consume alcohol at bars but they must leave the premises with the alcohol. However, customers can sit in a bar and have non-alcoholic drinks. Bars can only operate at 50 per cent capacity during opening hours. They will also be able to remain open within the curfew hours.
Moonasar also said that bar owners, employees, and customers must all be vaccinated in keeping with the health regulations.
Customers can also access gaming machines at bars.
He said they are somewhat satisfied that the Government took into consideration some of their recommendations however, the restriction of not being able to sell alcohol on the compound is of "great concen" to them.
"Restaurants’ core business is dining and they have that. Casino's core business is gaming and they have that. Bars’ core business is the consumption of alcohol and we do not have that so, we are still at a disadvantage. We’ll continue to lobby the Government on this issue."
BAR OWNERS REACT
The Sunday Guardian spoke to bar owners across the country about the reopening and how they have fared during the difficult period.
Freeport
Kay Maharaj, who owns a bar in Freeport, is not sure that she will reopen tomorrow.
Maharaj had gotten into the bar business in 2019, and when the pandemic hit in early 2020, she started to lose money.
She is renting and continued to pay rent although her business was closed.
"I had to fork out $150,000 in rent from March 2020 to now in 2021. This came from my personal savings, if I did not do this I would have lost my savings. I only opened my business in 2019 and one year later the pandemic hit. I have not been able to start getting back any money for my investment since then."
She said the situation would be "unpredictable" tomorrow and she is not sure how it would play out.
"I have a retailers licence and not a restaurant licence. All I can sell is alcohol and the Government says we can’t sell to people to stay and drink at the bar, so why are we opening as a safe zone? We can’t make money buying and selling one beer for people to grab and go. The only way to make a profit is for people to sit and drink alcohol."
She employs four workers and said she would have to hire additional staff to ensure that people have their vaccination documents.
Maharaj cannot see how they can justify the reopening of bars without allowing customers to consume alcohol at the place of business.
"Electricity is $5,000 per bill period, then I have a loan to repay and also the rent. I also have to pay the salaries of employees. My daughter and other family members have had to chip in to help me. Once they allow people to consume alcohol at bars then I’ll reopen my business."
Bar owner Lindsey Whiskey.
Arima
Lindsey Whiskey, who owns a bar in Arima, is fully prepared to reopen.
"We’ll be opened on Monday. My staff is vaccinated. This has been the worst ever since I opened my bar six years ago. I have four full-time employees. I was able to survive this rough time based on my savings. I don’t have any other source of income on the side.
"In overhead expenses alone it is up to $100,000 to run a bar like this monthly. This money covers stock, staff, and rent. The banks gave us a few months moratorium but then there's Courts, Standards and other places calling with no regard asking for their monthly payments."
Whiskey has taken the stance that although they are reopening under restrictions, it is better than nothing and he is happy to at least begin to generate some business.
Rio Claro bar shuts down
Troy Seecharan is the owner of a bar and the property it is on in Rio Claro. It was originally a liquor stare and mini-mart and in 2019 he began converting it to a bar.
He was brave enough to take the step to open the bar and a restaurant during the pandemic in November 2020 and in the first few months of operation he was generating money and building a customer base in his community.
"We were one out of 15 restaurants in T&T to be part of the Restaurant Week doing a St Patrick’s Day. We were doing pretty well even under the restrictions. Carib came in and looked at my place and was supportive. They came here and did promotions," he told the Sunday Guardian.
The business came to a grinding halt when bars were shut down due to restrictions.
"When I heard the Government spoke about the safe zone and people cannot drink alcohol on the premise I realised that it would not be worth it to continue. I have to close this business and move on. I also have the grill on the outside where I sell food but that will not be worth it as people come in mainly to buy the alcohol and then buy food. We will still lose money."
He said that he was looking to rent out the building to other business people who may continue with the bar business or who may use it for another purpose.
Seecharan said he has been struggling for the last few months.
"My investment in the bar was money I saved. I spent $160,000 renovating from the last building to the present structure. It has taken a toll on me and my family. My wife recently had a baby. I am not ashamed to say I am broke now. I have no more money."