The novel coronavirus pandemic has hit the Chinese economy hard, but in October, the catering industry reaped the first revenue increase in 2020 with a year-on-year growth of 0.8%. For small restaurants in Shanghai, the recovery has been helped immensely by tax incentives and rent reductions.

Las Tapas, a celebrated Spanish restaurant located on Shanghai’s Sinan Road, enjoyed monthly sales of 400,000 to 500,000 yuan before the pandemic, but no more than 5,000 yuan in February due to the epidemic outbreak. Since the monthly rent accounts for more than 60% of its total operation costs, a three months’ rent reduction of about 450,000 yuan has allowed the eatery to survive.

In April, its business began to revive and quickly returned to normal. The opening of Sinan Night Fair has brought even more customer flows, contributing a total turnover of nearly 9 million yuan in the first 10 months of this year. All these incomes have enjoyed VAT exemption.

“We appreciate the policy assistance the government has given us. Although new confirmed cases of COVID-19 are reported occasionally, our business is relatively stable and we are confident in the future," said Mrs. Lu, who is responsible for Las Tapas’ finance.