“We cannot have Merkel decide whether cafes on Place d’Armes can open”

The government’s announcement to reopen terraces as of 7 April provided a glimmer of hope for the struggling hospitality sector, even if the time span between 6am and 6pm makes little sense for the majority of establishments, with some calling it a mere “symbolic gesture”.

Many establishments in the hospitality sector see the government’s measures as disproportionate, limiting business at eateries and cafes to take-away only while allowing, say, concert venues to still welcome 100 guests (Ian Pocervina wrote an opinion piece about this issue).

Unsurprisingly, closed terraces have not put an end to sit-down consumption; people take their drinks to the park, a bench, or other arguably less-controlled environments. "We're seeing that youth are gathering on the Kinnekswiss, where there are no controls, while people at offices sit on staircases outside for lunch. I really believe we could be a part of the solution if we could open up little by little”, Horesca President Rix had said in March following a meeting with the Ministry of Health.

RTL Today spoke to Felipe Carrillo, owner of the Golden Bean coffee store chain. The pandemic caught him “with the pants down”, he says, as the chain found itself slap bang in the middle of a period of investment while opening a few new stores, most notably one at Kirchberg’s Infinity complex with a co-working space facility. Then the pandemic hit. Across all stores, revenue fell by 90% on average, with most of the chain’s shops closed due to their locations being primarily in office-dense areas - all customers who now work from home.

Staying open is just a way to remain connected to Golden Bean’s customers and keep the brand alive, Carrillo underlines. There is no commercial benefit.

Carrillo states the measures implemented by the Luxembourg government oftentimes follow the example of neighbouring countries, especially Germany, Europe’s largest economy. Instead of following the data at home, Luxembourg is behaving like sheep: “Back in November, they [Luxembourg government] would not have closed down if Germany hadn't. But the pressure was high”, says Carrillo. “We cannot have Merkel decide whether cafes on Place d’Armes can open.”

According to Carrillo, the biggest headache was the unruled situation about rent - most businesses’ largest fixed cost -  when the pandemic started. “The government did not take a clear position on that subject and suggested reaching agreements between landlords and tenants but with no enforcing guidelines”. Many landlords still demanded 100% of the rent in a complete shutdown scenario and the aid offered by the government was shy on all ends, Carrillo says. Businesses had to engage in sizable loans - in some cases with the backing of the government - to be able to pay these rents.

He believes this issue exacerbates the country’s housing crisis, with prices still on the rise. “It is a clear signal that no matter if there is an apocalypse the rent will be always due.  It is unfair that the entire society engages in debt so that the landlords can still have 100% of their rent. Everyone has to make a little sacrifice here.”

Fighting for every customer

One of Golden Bean’s store managers, Kseniia Pavlova, has set up her laptop on one of the store’s empty tables, typing away on work inbetween the occasional sale: “If prior to the pandemic you had to win every single customer, now you have to be at your 200% all the time.” Originally from Russia, she recounts how customers in Moscow would sit outside drinking their cappuccino in freezing temperatures of -30°C just to enjoy a sense of normality when terraces opened. She is hoping for the same in Luxembourg come 7 April.

But not every business has the luxury of opening their terrace. In fact, many establishments do not obtain over an outdoor space and are thus left out from this potential income boost. The Horesca federation has appealed to municipalities to authorise “a maximum of terraces”, and potentially even offer special permits for establishments that do not have an outdoor space. Talks are of an “ephemeral terrace”, a wooden structure erected on the pavement, but space is limited and only two guests are allowed per table.

Customers are eager for their favourite restaurant or cafe to open again, but they often express their frustration with the business itself, rather than the government: “When are you going to open your terrace”, customers would ask Pavlova. “When can I have my coffee outside? They think it’s up to them to decide when to open.” Meanwhile, food continues to be binned because the counters and fridges simply cannot sit empty.

Guests per square metre as an option?

Could establishments otherwise welcome a certain number of guests according to their area? An appointment-system would already make a big difference, even if it’s just for a coffee, believes Pavlova. Experiments are underway in Germany and the Netherlands to allow seated customers provided they carry a negative corona test.

Privately, the pandemic has kept owner Carrillo awake. “The first weeks were a feeling of complete impotence with tide hands on one hand and an exponential risk and absolutely no certainty of the future, on the other hand. Time-wise and work-wise it might be a bit less intense now, but emotionally and stress-wise it is way more difficult. It’s constant juggling, especially at the end of the month when the salaries are paid out, not to mention the rent.”

Nevertheless, he is well aware that business owners in Luxembourg are much better off than in other countries in the EU, now that partial unemployment has been extended until May. Born in Colombia, Carrillo recalls the severity of the situation in his home country, where the virus has discriminated along social classes: “Latin American countries are very urbanised. People have gone to the cities, and the density is higher. Those people taking more public transport, the frontline workers, they are more affected. This is reflected in the deaths.”

Do you have a story to share with us about how Covid-19 has impacted your life? Feel free to reach out via email to joshua.oudendijk@rtltoday.lu.