Tata Starbucks has written to the landlords of its outlets for a three-month waiver on rent amid the coronavirus lockdown. The coffee giant has written to the landlords of 185 outlets in India and said that the situation can be reassessed after the period of three months.
In the letter Tata Starbucks said that they would be unable to bear rental and maintenance charges and asked for the waiver from March 1. According to a report in The Economic Times, the coffee giant said that future terms can be decided depending on any improvement. Since the company has already paid the rent for the month of March, it has asked landlords to adjust this against future obligations.
As mentioned in the report, the letter stated that the company has implemented efficiencies in its manpower planning and other processes to bring down operational overheads. The lockdown has impacted consumer sentiment, the letter stated. It added that the only way to brave this onslaught is by reducing its fixed operating expenses in the immediate term till consumption improves.
Industry experts told the daily that if the landlords do not agree to the waiver, then the company might implement 'force majeure' clauses that prevent businesses from fulfilling a contract in case of rare and unanticipated events that are beyond the control of the party.
Several restaurants including McDonald's, Domino's Pizza and Speciality restaurants have also sought similar waivers from their landlords.
Currently, there are 3,981 active cases in the country, according to data from the Health Ministry. So far, 325 people have been cured or discharged, while 114 people have died.
INDIA CORONAVIRUS TRACKER: BusinessToday.In brings you a daily tracker as coronavirus cases continue to spread. Here is the state-wise data on total cases, fatalities and recoveries in one comprehensive graphic.
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