SPAIN: Bars and restaurants request an extraordinary plan to stop the bankruptcy
Hostelería Madrid, an association that represents bars and restaurants in the Spanish capital, has published a press release in which it requests the Madrid City Council to take special measures to soften the impact of COVID-19.
The current crisis could mean a reduction of 43% in the income of establishments in Madrid, with an economic impact of 2,645 million euros. Activity in the city has fallen by 98%, and only home sales, which represents 2%, remain active.
Hostelería Madrid considers that the scaled recovery will begin this spring and the outdoor spaces will be essential. For this reason, some of the measures they propose seek to allow, exceptionally, the installation of outdoor consumption areas for premises without a terrace.
On the other hand, although the association assumes that 20% of bars and restaurants (3,827 businesses) are in danger of bankruptcy, they hope that the measures they suggest will help keep the rest of the companies open and overcome this critical period for consumption.
Proposed measures in a first phase:
These exceptional measures will have an estimated impact of 289 million euros, which will help to recover 11% of the income expected to be lost during 2020.