The restrictions caused by the COVID-19 have been difficult and damaging for most businesses. However, it seems that the hospitality industry was hit the hardest, making it the one that will take the longest to fully recover.
Here are the main statistics and predictions for the restaurant and hospitality businesses.
The hospitality sector recorded serious job losses (around 38%) while those employees that remained had their wages and hours reduced.
Total revenue losses are over 50% for 2020, affecting both big and small businesses, especially in major cities.
The stats for occupancy rates are discouraging as well, as they hit unsustainable lows of 24.5% (everything under 35% is considered unsustainable).
That means many businesses are unable to break even and without a dramatic increase in occupancy or Congressional action, they will fail to recover. For further information check out Kitchenall Restaurant Equipment.
It seems that over 50% of people are not willing to indulge in dining out and overnight vacations just yet.
Between 14% and 17% of them claim that they will feel comfortable to do so only after a vaccine becomes available.
Restaurant owners have some additional concerns. It will take a long time (even up to a year) for their establishments to become fully functional again but it doesn’t guarantee that the customers will return.
The data shows that over 80% of customers intend to continue ordering delivery after the restrictions are revoked.
In order to have any chance of recovery, the industry needs to find new ways to adjust. The main changes include investing in increased protective measures and relying on modern technology.
By minimizing human-to-human contact in hotels and restaurants it could prompt customers to return, knowing that their safety is made a priority.