Liquor stores anticipate financial squeeze as weekend booze lock returns

Some Pretoria medium-small based liquor stores believe that the festive season stricter regulations that permit the sector to trade from Monday to Thursday, would have a devastating impact on local economy.

In a televised address to the nation on Monday, President Cyril Ramaphosa announced strengthened regulations for the festive season that included sale of alcohol at off-site consumption outlets will only be permitted between 10:00 and 18:00 from Monday to Thursday and the reinstating of the curfew from between 23:00 and 04:00 every day.

The festive regulations will also see no alcohol sold on public holidays.

Pretoria-based liquor store Freedom Liquor owner Francisco Nunes said with the new regulations the road to economic recovery for his business was a long-shot away.

“The regulations implemented on the sector are devastating on the small businesses. We make most of our sales between Friday and Saturday – so the new regulations will bring a massive loss to my business,” Nunes said.

“During the hard lockdown the business really suffered as a result. We are behind on paying accounts as we have not been able to generate enough revenue. For months we were constrained to only operating for four days and then regulations were relaxed and now we are back to where we were,” he said.

“For my business Friday and Saturday are imperative for the generation of profits, I am still scratching my head trying to see how we will survive this.”

Nunes said he felt the festive regulations were ‘“unfair”’ to the sector and could possibly see small business collapsing.

Overland liquor store manager Marius Pretorius said the possible financial-knock might result in job losses.

‘“Most businesses are behind with their rent and we were hoping that the festive sales could assist into trying to close that gap created during the hard lockdown. Christmas sales make most of the profits, between 17:00 and 19:00 is usually our peak time. As a local business we are still limping financially and with the way things are we will not recover any time soon.”

Louis Liquor Store owner Jean Victor said he was grateful that the industry was not closed off again or placed back to closing at 17:00.

“The harsh reality is that the hard lockdown hit hard on many business and we would not have survived the the economic impact of yet another closure,” he said.

“Although on the general view of things we will see some businesses facing hard financial knock but I am optimistic that my business will not. My business is situated in a semi-industry area and most people close at 17:00 and purchase before heading for home.

“However, this is not the case for most liquor stores that are situated in residential areas which see most of the negative impact,” he said.

Arlin Williamson from Rafters Pub in the east of Pretoria welcomed the changes in regulations affecting the restaurant and pub sector.

“We are living in difficult times, the virus has affected most parts of the world – not just our country’s people are dying. When it comes to restaurants, the regulations allow our businesses to operate and close at 22:00, and that was mainly for safety reasons.

“Many people stay longer at pubs long after 02:00 without being cautious. We are going to follow the rules and make sure everyone can get to their homes safely and on time.”

The Beer Association of South Africa (BASA) CEO Patricia Pillay welcomed the new regulations, saying they were reasonable.

“At this point is about balancing lives and livelihoods, I think the businesses can still remain open. It is far better than being shutdown. It is the busiest time of the year, we are hoping patriots will be responsible during this time of the year.”

On Monday, Pillay said the beer industry would maintain its zero-tolerance approach towards non-compliant businesses by cutting off supply to those outlets and establishments.

“Preventing the further spread of Covid-19 must be the first priority, and so we call on all liquor outlets and establishments to continue playing their part by enforcing the wearing of masks and social distancing in their establishments.”

In his announcement of the new regulations, Ramaphosa said these were implemented as a measure to curb an increase in Covid-19 infections as the country experienced a second wave in infections.

“We should all remember that the hours of curfew also apply to Christmas Eve and New Year’s Eve. This means that we will all need to make changes to the way in which we celebrate these occasions.”

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