The Restaurant Industry During The Pandemic

The COVID-19 Pandemic has affected lots of industries, cutting right across every sector. While some sectors are gradually finding their footing, others are yet to make headway. One of such adversely affected is the Restaurant Industry.

Guy Fieri – an American restaurateur, author and, Emmy Award-winning television presenter had in the past mentioned that restaurants are the souls of the community. In recent times, he highlights that the effect on the industry was sharp and immediate following the pandemic. Some of the issues faced were total shutdowns, employee layoffs, then proceeded to the phase on how to deal with a reduced capacity, restarting businesses to serve customers safely while dealing with new rules and regulations. They also have to deal with delivery. The industry is heavily dependent on delivery apps, and they insist the charges are exploitative as delivery takes up to 30% of their revenue.

The National Restaurant Association Research Group surveyed 6,000 operators and 250 supply chain businesses and its findings revealed that:

  • 87% of full-service restaurants had reported up to 36% drop in revenue; 
  • 58% of full-service operators expect layoffs soon; 
  • 59% of operators recorded that their total labor costs were lower pre-pandemic than they are now;
  • 48% say it is likely they will remain in the industry in the months to come.

This prompted the association to send a letter to Congress detailing their findings and requesting support. It highlighted that the country’s second-largest private-sector employer was in an unprecedented economic decline, and if they continue without support, more businesses will be forced to shut down. They also requested a cap on delivery charges. 

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