30-year-old restaurant closes over COVID-19 impact

BUSINESS   COVID-19

Popular eating spot for Chinese nationals, Shanghai Restaurant is closing down its business located in Nakasero in an effort to save other arms of the business.

The planned closure is likely to render some employees redundant. But Shanghai Hotel and Restaurant management said it will maintain operations at its Muyenga branch as they tap into new technologies to serve its customers.

The pressure to close the nearly 30-year old business stems from the impacts occasioned by coronavirus according to a statement from the company.

"We have provided high-quality Chinese food for close to 30 years and been an enthusiastic part of the community but due to the harsh effects of the COVID-19 pandemic on the business, the restaurant is closing down," the statement read in part.

Hotels and restaurant are some of the hardest-hit sectors by the pandemic. Measures put in place by the government such as the 7PM curfew, social distancing made it difficult for some sectors to operate and be able to break even.

In July, PEP stores, a leading clothing discount retailer announced that it will close down shop in Uganda over COVID-19 pressures on the business.