Challenges and Recovery of Restaurant and Hospitality Industry After COVID-19

Challenges and Recovery of Restaurant and Hospitality Industry After COVID-19

While certain industries increased their profit during the COVID-19 pandemic, the hospitality sector took a huge hit.

Consequently, the recovery of this industry is going to be costly, long, and turbulent to say the least. 

Current statistics

Both small and big businesses were hit with revenue loss (over 50%) while being forced to lay off around 38% of employees. Those that remain struggle to maintain their hours and wages.

The occupancy rate fell under the sustainable 35% at one point (in April it was 24.5%). That speaks volumes about the severity of the situation.

According to data on kitchenall.com commercial kitchen supply, the best chance of recovery that industry has is with a dramatic increase in occupancy and with the help of Congressional action.

Recovery

Owners are aware of the problems they are facing with re-openings.

It takes up to a year and a lot of money to make hotels and restaurants fully functional once again.

Their main concern is that revoking the restrictions doesn’t guarantee the return of the customers.

Over 50% are not ready to go back to traveling and dining out, around 17% are waiting for a vaccine to become widely available, and 80% of customers are planning to continue to order delivery.

That brings up the question – Is the investment in re-openings worth it?

Necessary changes

One thing is certain, the way the hospitality business was conducted is a notion of the past. In order to move forward, some changes need to be made.

Most importantly, the reliance on hands-free technology has to increase. 

The use of contactless payments and touchless appliances will provide much-needed safety measures (in addition to masks, gloves, and distancing), minimizing human-to-human contact. 

This also means further expenses, which for some businesses is going to be a challenge on its own.

Challenges and Recovery of Restaurant and Hospitality Industry After COVID-19

 

 

 

 

 

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