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Delivery Doesn't Solve Covid-19 Crisis, Says Restaurant Representative GO 31-03-2020

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Directly affected by the effects of the new coronavirus pandemic, the bar and restaurant sector is unlikely to find a solution to the delivery crisis. Although it needs government help to avoid mass layoffs.

At least that is what the president of the National Restaurant Association (ANR), Cristiano Melles, defends, who spoke about the subject in a live broadcast on XP Investimentos.

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According to Melles, the sector generates around R$400 billion per year, employing 6 million people. However, revenue from delivery services does not even reach R$41,300 of this total. “It is growing, of course. There was a view that delivery could help. But, in fact, delivery does not solve the problem at all,” he assesses.

Delivery Não Resolve Crise Da Covid-19, Diz Representante De Restaurantes GO 31 de março de 2020
 

Delivery in the crisis

Although the president of ANR believes that, at this time of crisis, the big discussion is how to maintain jobs, and the solution lies in the hands of the government. He suggests that the government pay four months' wages for the sector's base employees, who earn the minimum wage set by law (R$ 1,045).

“There is no other way out than for the government to support us,” he argues. “I’m not saying I want to pay the company’s executive with this money. However, I want to pay a minimum wage for the frontline workers. We are the sector that provides first jobs, where most young people are employed. Without support at this time, it will be difficult for establishments to reopen.”

Comparison with the USA

Cristiano Melles also mentioned the Brazilian government's plan to pay emergency aid of R$600 per month for three months to informal workers. The measure was compared by the ANR president to the US$1,200 check that the United States government is giving to millions of Americans.

“They have a situation that is just as dramatic as ours. But, unlike in Brazil, the check for US$1,200 is reaching people. What we understand is that now, in order to have a minimum employment protection network, we also need this check to reach the base of the pyramid,” he argues.