Clampdown on sale of liquor set to hammer restaurants, bars, taverns

The hospitality industry in Nelson Mandela Bay is bracing for the impact of the government’s clampdown on pubs, clubs, taverns and restaurants, with the new regulations relating to the sale of alcohol expected to take a heavy toll on the industry.

The regulations, gazetted on Wednesday by co-operative governance and traditional affairs minister Nkosazana Dlamini-Zuma, have the business owners stressing about how they are going to pay their bills and keep a full staff complement on the payroll.

Restaurants in the city have already noted a drop in customers since President Cyril Ramaphosa declared a national disaster on Sunday, but the latest regulations could cripple them financially.

Three Port Elizabeth outlets — Coffee and Kids Company, Frederick & Son and White Tiger — have temporarily closed their doors after Ramaphosa’s announcement.

However, the latest regulations will make it even harder for pubs, clubs, taverns and restaurants to survive.

Liquor may now not be sold between 6pm and 9am at these establishments on weekdays and Saturdays and after 1pm on Sundays and public holidays, and they may not accommodate more than 50 people at a time.

This comes as Ramaphosa announced on Thursday that the number of confirmed cases of Covid-19 in SA had risen to 150, up by 34 from the 116 cases announced the day before.

The Free State also announced its first case.

There have been no confirmed cases of the coronavirus in the Eastern Cape, but results for three people who recently returned from Sweden are pending.

The normally bustling Stanley Street eatery strip in Richmond Hill was almost empty on Thursday.

Salt owner Etienne Barkhuysen, who also owns St James in Walmer, said he had immediately stopped the sale of alcohol from his two restaurants so that he could keep the doors open after 6pm. 

“We don’t want to sell liquor right now so that we can remain open. We will have our dining customers and offer take-ways,” he said.

“We won’t be making any profit at this time but it is just to provide salaries to the 65 staff members at both premises.”

A waitress, who declined to be named, said most workers in the industry were anxious about possible job cuts.

“The money we get helps when it comes to our day-to-day living expenses. This [new regulations] creates a lot of uncertainty for us,” she said.

A second waitress said the number of customers had dwindled drastically since Sunday, leading to fewer tips.

“We rely on tips as most of our income comes from this,” she said.

At the beachfront, Barney’s Tavern owner Craig Mittens said all he could do was “weather the storm” and hope the regulations would be relaxed soon.

“All the events around us have already been postponed, such as the Ironman African Championship.

“We were already under pressure but this is really bad for business,” he said.

Mittens said his customer turnover had dropped by 50% since Sunday, and predicted that it would only get worse in the coming weeks.

“We have had to reduce to a single shift, which will affect staff and their livelihoods.

“Some people have been put on leave while we try spreading the work around to everybody else,” he said.

Mittens said Barney’s had introduced a numbering system, with no more than 50 people allowed inside the establishment

“There is really nothing fair about this but we will adhere to the rules.”

Across from Barney’s, Blue Waters Cafe owner Bartho de Vries said his restaurant had seen a 70% drop in turnover since Sunday.

“These new regulations will negatively affect us even more,” he said.

 “They [the government] should have just allowed us to stay open from 8am to 8pm. We would then have had more of a chance.

“I understand the reason for the measures but we had just started short time on Wednesday, which left staff with a reduction in salaries, after Sunday’s declaration.

“We are now looking at rotating the one shift we have left.

“Half the staff will work one week with the next group [working the after week] after that.”

De Vries urged the government to assist businesses financially or put a hold on VAT payments.

Just down the promenade, Cubana owner George Davelis said it was too early to give specifics on the likely damage the regulations would cause but said that it would be bad for business.

“It is a serious matter but it is best for everybody. We will find a way through this as the decision was forced upon us.”

Beershack owner Matt Repton, who also owns White Tiger, said the regulations would have a devastating effect on the economy.

“We are in unprecedented times and it’s one of those things where all business owners need to stick together and try not to create panic.

“We’re all about trying to preserve jobs, trying to look after staff and be conscious of the safety of our own customers,” he said.

Repton said his biggest concern was with the closure times, similar to clampdowns in Europe and the US.

“The big difference is those governments will be giving money back to the restaurants, bars, waiters and waitresses.

“I don’t think that’s going to happen here considering the economic situation,” he said.

Some tavern owners have refused to follow the new regulations until they are formally informed by the Eastern Cape Liquor Board.

KwaNobuhle’s Endaweni owner Luthando Mange said: “Until we get a response from the liquor board, we’re not going to comply.”

Kwa-Jwarha’s Place owner Lungisile Mange said he also would wait for an official letter from the board and not rely on the media saying there was a clampdown.

“We’ve been warned about people spreading fake news so I’ll only take action when the liquor board tells us which way to act.”

Eastern Cape Liquor Board chair Nontsikelelo Moleshe-Pakade urged all liquor outlets to adhere to the regulations, warning that the regulations would be policed.

“The board fully supports the clarion call to embark on serious and drastic steps to prevent the rapid spread of Covid-19 in the country.”

She said the board would ensure outlets followed the rules.

“Our liquor inspectors throughout the province will, in partnership with the police, on a regular basis, monitor the implementation of these regulations.

Chief Nqoko’s Place owner Zonwabele Solwandle said he would comply with the regulations.

“As a licensed operator, we don’t have a choice but to listen to the government because we don’t want to be negatively affected,” he said.

Solwandle said he hoped the government would provide some sort of relief to business owners.

While most restaurants will struggle to survive, Frederick & Son owner Freddy Heydenrych said the Walmer restaurant was able to close temporarily from Thursday, with core staff placed on leave.

The restaurant made the decision before the new regulations kicked in.

“We feel that this is the most responsible action for us to take at this time.

“As we monitor the situation and the instruction from our national leaders, we will keep you updated on our plans to reopen,” he said.

The Coffee and Kids Company, located in Fairview, said in a Facebook post: “In light of the coronavirus, and with public places not being an option for parents at this stage, we have made the decision to close the shop until further notice.”

All this comes as the cascading effect of the coronavirus has left the bed-and-breakfast sector on its knees, according to Port Elizabeth Metro B&B Association chair Shena Wilmot.

She said many owners were dealing with 100% cancellations or postponements on visits as the virus continued to spread in SA.

“At the moment, it is really bad. The fallout is catastrophic.

“I don’t know how we will all survive this,” she said.

Radisson Blu spokesperson Suriya Govender said the hotel had seen an increase in postponements for gatherings larger than 100 people.

“Naturally, travel and stays have been shortened to allow guests to return to their families and or countries.”