Modesto's two restaurants in Orchard area will be no more by June 2020.

The closure of Modesto's was reported by CNA on May 14, 2020.

The owner of Modesto's, Ashok Melwani informed his 50 employees during the end of April that his two restaurants will be closing for good because of Covid-19.

20-plus-year history

Modesto's has been a familiar sight in town for many years.

Some of Ashok's staff have been employed for more than 20 years.

Modesto’s at The Elizabeth Hotel, which has been operating for 17 years, ceased its dine-in service at the end of April.

Its kitchen will continue until the end of May to serve guests in the hotel fulfilling their stay-home notice requirements.

Modesto’s at Orchard Rendezvous Hotel will close down in June after 23 years.

Modesto's have been reliant on tourists but they are no longer in Singapore due to the pandemic.

Losing money

The choice to close shop was made as the risk was to continue to lose money for the rest of 2020.

The owner already lost some S$200,000 in March.

April's earnings are not finalised yet.

Both restaurants have been reliant on savings from last year to continue operations at the moment.

Profit margins were reported as "6 to 7 per cent" in 2019.

Sad time but moving on

Ashok said he cried when he gave out retrenchment letters to his first batch of 15 staff who were laid off in April.

However, the employer is not leaving his ex-staff in the lurch.

He is helping those retrenched find job via leads among his contacts.

So far three of them have managed to find something else.

Ashok also launched a mini-fundraising campaign.

He is setting aside 40 per cent of takeaway sales proceeds in May to help former employees who are sill looking for work elsewhere.

Top photo via Google Maps