Moroccan Restaurant Industry in Crisis: Owners Seek Government Aid Amid Closures and Debt

Repayment of bank loans, rents, salary supplements, taxes, and other charges weighing on restaurant businesses is long, "while their establishments are closed, or are subject to reduced hours, or are limited to takeout," relays a statement from the federation.

Due to the crisis, 40% of companies have been forced to close. "More than 80% of business leaders, who find themselves on the brink of bankruptcy, have experienced a dizzying and critical increase in terms of debt, mobilization of equity, and mortgaging of assets," the federation said, assuring that the situation is unbearable. In addition, some have recorded an additional debt rate of more than 50%, others have practically stopped their investment projects and have thus impacted the ecosystem composed of industrialists, distributors, printers, logistics operators, to name but a few. And the rest of the restaurateurs will surely opt for closure if the reopening of establishments is not immediate, added the Moroccan Franchise Federation.

Thus, the professionals call on the CVE to develop "tangible measures like foreign countries, through subsidies for the partial coverage of fixed costs including rents and payroll, as well as real tax relief measures," such as the suspension of eviction allowances, a deduction of more than 75% on all municipal taxes, an increase in the Relaunch Credit amount to two months of turnover instead of one month, and others. Furthermore, the FMF calls for an emergency meeting with the CVE, the Ministry of Industry and the CGEM, in order to find solutions that can help the sector survive this crisis.