Less than two months have passed since the beginning of the Iron Sword War, and you can already see the grim impact on many businesses that have suffered a significant drop in revenue, and some have decided to close their doors permanently.
Attorney Roy Cohen, Lahav's president, addressed the question of how many businesses are expected to close due to the war. "During the COVID-70 crisis in the first few months, 000,30 businesses were closed as a result of the crisis. We estimate that as a result of the rapid response, up to 000,<> businesses will be closed. There are still entire businesses, such as tourism, culture and event halls, that are expected to return to work in a few months, and therefore some will be forced to close.
"In industries that suffered a significant decline, this is a decline of 100-80 percent. The fact that we are almost two months into the war and there is still no compensation plan for the coming months for those businesses that are closed may also be part of their decision to close the business. People have to make fateful decisions, such as whether or not to put an employee on unpaid leave, or whether to close the business because there is no compensation for fixed expenses."
Or Kaslasi and daughter, photo: None
In practice, there are already businesses that have decided to close their doors due to the war. One of them is the business of Zuli Mor from Kfar Gaza, owner of the Sins restaurant located at Gevim Junction, 300 meters from Sderot. Zoli is the uncle of Abigail Idan, who returned from Hamas captivity to a terrible reality after her parents were murdered in the October 7 massacre.
Recession and then war
Moore, who is now raising Abigail and her brother, says, "You have to look at reality as it is. At the moment, the war is not going to end anytime soon. Even when it ends, the Gaza envelope is in a difficult situation, and it will take time until they rehabilitate the surrounding area and the soul. In the end, the restaurant needs to be maintained, and I'm not going to sit and wait for the Messiah. I will probably fold the stall soon.
"I'm going to raise Abigail and her siblings in addition to my three children. I don't think we'll go back to Kfar Gaza. We have lost faith in the system, both in terms of security and in terms of the state. I lost my sister-in-law and brother-in-law and was uprooted from my home. It's not about four walls, it's about community."
Asked if he had received compensation for the business so far, Moore replied: "I haven't received anything. I have experience compared to my friends in the center, and I told them to prepare for a ordeal until the state gives them something. Financially, on October 7 I parted with a million shekels."
Nadav Rappaport, Photo: Batya Kravitz
Or Kaslasi from Rehovot, married and father to Rani, owns an "authentic" business in Airport City. This is a nature store that has existed for two years. The business closed last Thursday due to the war and recession.
Casalesi says, "The difficulties of the business began during the last recession, and the war was the straw that broke the camel's back. I was drafted under Order 8. I've been serving in a mobility unit in Gaza since the beginning of the war, and my wife ran the business. She actually works in high-tech, and as soon as she finished the job, she brought the girl back from kindergarten and ran to the business to run it for two or three hours, so that there would be oxygen.
"The addition of the war to the recession period is very significant. During the war, our revenue was cut by 60% because of the few hours the business was active. It was impossible to employ workers, because the revenues were insufficient and a snowball ensued. In the last few days we held a liquidation sale, and Thursday was the last day of the business's activity."
Soldier and civilian during the "Iron Swords" war. Only together will we win, photo: Shiran Rukban
Nadav Rappaport, owner of the chef restaurant Artel Formal, talks about the decision to close the restaurant, which was established last March and has been closed since the beginning of the war. "The war has greatly affected the business, which is not near homes and neighborhoods, which automatically makes it more difficult," he said. We offered customer experiences, entertainment and quality food, and what people need right now is ventilation.
"Looking at the map, I prefer that life be under my control and I don't know what will happen in the coming year. We also own Kandinoff House and another place in Midtown and I prefer to distribute the energy in places that have a higher chance of survival. This place was born of romance and it died of intellect, we looked at the numbers. It is likely that today at least 30% of restaurants do not close because they cannot close. They need money to shut down."
"The layout arrived late"
Regarding the compensation outline, he says: "There is an outline that is not bad in terms of businesses like ours, which have a lot of employees, we have 200 employees in the group. This time, unlike the coronavirus, it's better – but why is it coming so late? We don't understand why not give money now. Why add even more imbalance?"
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