ECONOMY

Food service chains threaten not to pay their May rent

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Food service chains are declaring that they won’t be able to pay their rent for May if the forced suspension of their operations continues – beyond delivery and takeaway services.

This warning, if the businesses carry through with their threat, would constitute another blow to the commercial property sector, given that the branches of chains add up to some 3,500 across the country including the franchising partners.

Property sector sources are not surprised, saying they had expected this reaction, and believe it forms part of general negotiations for a downward adjustment of rental rates, not only during the health crisis but after too.