The Covid-19 pandemic is causing unprecedented challenges for European societies. The EU and Member State governments have taken extraordinary but necessary measures in recent days to prevent the spread of the virus and to protect human life. These measures have included school and university closures, closures of bars, restaurants and other public spaces, instructing non-critical businesses to allow workers to work from home where possible, and in some cases forcing non-essential factories to suspend production.
FoodServiceEurope supports whatever measures are necessary to combat the spread of the virus. However, these measures are putting a huge strain on the contract catering industry.
The closures of schools, universities, restaurants, offices and other facilities in which contract catering companies operate is causing a huge loss of business for our sector, putting employment and the viability of companies at risk. In Italy for example, 41% of the 97,000 workers in the contract catering industry work in schools and universities.
Contract caterers who are continuing to provide vital services to those working in essential sectors, such as hospitals and care homes, are experiencing difficulties in sourcing sufficient personal protective equipment (PPE) for their employees.
The European Union has introduced a number of economic measures to support Member States and companies during this crisis, including the relaxation of State Aid rules. The EU has adopted a Temporary Framework, similar to the one created in 2008 during the financial crisis, to offer advice to Members States on how to effectively use five different types of State Aid to stabilise their economies and protect the Single Market. These include direct grants, state guarantees, subsidised public loans, safeguards for banks and short-term export credit insurance.
The EU has also called on Member States to take all necessary measures to protect the most affected sectors, such as providing wage support, suspending corporate tax and suspending VAT. Many Member States have already introduced comprehensive economic measures to support their economies and affected sectors during the crisis.
FoodServiceEurope welcomes the measures taken by the EU and encourages Member States to take full advantage of all the support measuresbeing made available by the EU. Some companies may be experiencing a total loss of business (especially caterers in schools and universities) and concrete financial supports are crucial to prevent them from collapsing. FoodServiceEurope also encourages its members to engage with the authorities in their Member State to ensure that they are availing themselves of all measures which have been put in place to support businesses.
Finally, FoodServiceEurope echoes the need to ensure that sufficient PPE is made available to all those working in the contract catering sector, in particular those working in hospitals. They are providing a vital service to those working on the front lines, and it is crucial that their health is protected so they can continue to provide this essential service