As the year 2020. comes to a close, we look back to the undeniable mark that the COVID-19 global epidemic has left on the business world, economy, and our lives in general.
Without a doubt, further long-lasting consequences still remain to be seen.
For now, let’s observe the impact that the epidemic had on the restaurant and hospitality business as well as some future projections and predictions for these industries.
Even though most businesses have been affected, the data shows that the restaurant and hospitality industry is one of the last to recover successfully.
The statistics are concerning as 38% of employees are left without a job, while the ones that remain, had their hours and wages reduced. The revenue loss is over 50%.
Overall, 11% of restaurants had to close during this year, mostly in large cities such as LA, NY, San Francisco, Chicago, and Dallas.
The hotel occupancy hit an all-time low with 24.5%. To put this in perspective, a rate below 35% is considered unsustainable.
Research has shown that over 50% of people are still reluctant to return to hotels and restaurants, but most of them would be willing to pay higher prices knowing that additional measures are implemented. Up to 17% will wait for a vaccine to be available.
On the other hand, 65% of business owners believe that it will take up to a year after the reopening to be able to function properly.
It is difficult to have a completely clear idea for the future of the industry. However, one thing is certain, it will have to find a way to evolve and adapt by relying on technology and minimizing human-to-human contact.
For further information be sure to consult kitchenall.com.