How COVID-19 Impacted The Restaurant and Hospitality Industry

The epidemic of COVID-19 brought instability to our everyday lives and complete chaos to the global economy affecting separate industries in various ways.

It seems that the hospitality sector took the hardest hit, making the recovery particularly uncertain and difficult.

Let's examine overall statistics as well as some predictions, reopening plans, and future adjustments.

General data

The direct impact of COVID-19 restrictions are visible in three main aspects:

1. job loss - during this year alone around 38% of employees lost their jobs and most of those that remained had their hours and wages cut due to reduced workload

2. revenue - based on occupancy rates and revenue trends, the total revenue lost in 2020. is over 50%

3. occupancy rates - in April this year occupancy rates hit a historic low of 24.5%. To put that in perspective, everything under 35% is thought to be unsustainable.

Some businesses were forced to close while others struggle to break even, and without Congressional action, they are unlikely to recover.

For further data, consult Kitchenall Restaurant Equipment & Supply.

Reopenings

More than half of the population is still reluctant to return to restaurants and hotels. 

Around 25% are waiting for data to improve, but 14-17% of them will only feel comfortable once the vaccine is available. 

That causes additional problems for restaurant owners. After the restrictions are revoked, it will take time and money to make their establishments fully operational again. 

However, since over 80% of customers intend to continue to order delivery, reopening the restaurants to their full capacity will be practically unnecessary.

Possible solutions

The industry will need to adapt in order to ensure its survival. At this point, there are two main changes that need to be implemented: 

1. increased safety protocols

2. intensified reliance on technology.

By minimizing human-to-human contact, the industry will have a better chance of moving forward.