FRANCHISE HERALD
Monday January 25, 2021

updated - January 25, 2021 Monday EST

The Consequences of COVID-19 On The Restaurant and Hospitality Business

Dec 24, 2020 03:55 PM EST | By Ernest Hamilton
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The Consequences of COVID-19 On The Restaurant and Hospitality Business
(Photo : The Consequences of COVID-19 On The Restaurant and Hospitality Business)

The COVID-19 epidemic brought uncertainty to the global economy, and particularly to the restaurant and hospitality industry.

Here you will find general statistics, projections, and the future plans to a road of (possible) recovery.

Main impact 

According to collected information, the hospitality sector is the one that was affected the most by the shutdowns caused by the epidemic. It is also the one that will take the longest to completely recover. 

Overall job losses show a dramatic increase, especially in larger cities. As much as 38% of employees lost their jobs, while most of those that remained got their hours and wages reduced. 

Total revenue lost is over 50% and the occupancy rates fell under 35% that is considered necessary to cover all costs and break even (in April this year the rates hit 24.5%).

Both small and big businesses were affected and at this pace, it is unlikely that they will be able to recover without a huge increase in occupancy or Congressional action. 

To examine more detailed stats, check out Kitchenall Restaurant Supply.

Customers and owners

Data shows that over 50% of customers are reluctant to indulge in dining out and over-night vacations, while around 17% decide to wait for a vaccine.

These statistics are especially worrisome for restaurant owners. 

After spending a lot of time (even up to a year) to make their establishments fully operational again (and implementing necessary measures), it seems that most customers (over 80%) intend to stay home and order delivery.

Future plans

To reinforce the chances the industry has for survival, some changes need to be made.

The primary thing is to minimize human-to-human contact by implementing the necessary safety measures and relying more on modern technology (such as contactless payments, keyless entries, sensors, etc).

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