The Impact of COVID-19 on the Restaurant and Hospitality Businesses
By Space Coast Daily // February 8, 2021
The disarray of the current state of the global economy (post-COVID-19) is even more visible and troublesome in the hospitality sector.
It is difficult to predict its future with some accuracy, but one thing is certain – the road to recovery is going to be long and costly.
Here are the stats and projections that can be provided at this moment.
The main impact of the epidemic can be seen in revenue (over 50%) and job losses (around 38%, not counting the cuts in hours and wages for remaining employees).
Another major consequence, hitting both small and big businesses, is occupancy rates that at one point fell under sustainable 35% (in April 2020 it was only 24.5%).
Kitchenall discusses these stats in further detail.
Once the deliveries became a necessity, people seem to be reluctant to go back to dining out (or to indulge in over-night vacations).
Around 18-25% of customers are waiting for the data to significantly improve, while around 17% claim they don’t feel safe without a vaccine.
And even though the vaccine started to circulate, most people would still wait for it to become more widely available.
What concerns owners the most is the amount of time and money they have to invest to make the establishments fully functional without the guarantee that customers will return.
So what is the verdict? Does the industry have any chances of survival?
The efficiency and success of its recovery depend on the implementation of innovative approaches.
Other than strengthening safety measures (gloves, masks, physical distance, etc) this also means increased involvement of modern technology.
Contactless payments, sensor-operated appliances, service robots, digital menus, and touchless elevators will go a long way to minimize human-to-human contact.
Only by adjusting properly to this new situation can the industry begin to heal and start making a profit again.