COVID-19’s Negative Impact on the Restaurant and Hospitality Industry

COVID-19’s Negative Impact on the Restaurant and Hospitality Industry

Image by Alexandra_Koch from Pixabay

Without any doubt, the global pandemic of coronavirus can be described as the first big obstacle in the 21st century. There hasn’t been an industry that didn’t felt severe consequences. However, the restaurant and hospitality industry is the one that probably suffered the most during this time. According to statistics, it will be among the last ones to recover.

Just take a look at how many people from this industry have lost their jobs and how many restaurants and hotels are now closed. Hotels are reporting the lowest occupancy rates ever. The lack of guests immediately results in people losing their jobs. When these lost jobs are calculated, we can see that around $1.7 billion hotel employee salaries are lost per week.

Furthermore, lost hotel room revenue per week now amounts to $2.8 billion. All the projections are saying that the total revenue loss for 2020 will climb up to more than 50%. The biggest cities in the US have suffered the most. Los Angeles has 7500 permanent and 7500 temporary closures, New York has 7100 permanent and 4100 temporary closures, and Chicago has 3200 permanent and 1800 temporary closures.

One of the major factors in the industry’s future recovery is how will guests react. We can see that 25% of participants in a survey will be comfortable while visiting restaurants only after testing methods are improved. Plus, 14% of them will be comfortable when they are vaccinated. 60% of guests will not dine at a restaurant where staff doesn’t wear gloves and masks.

Thankfully, we now have technology that can prevent all the risky contacts. By minimizing human contact the spreading of the virus is limited. We are talking about digital menus, touchless elevators, service robots, keyless entry, and contactless payment.

To find more interesting facts and statistics about COVID-19’s negative impact on the restaurant and hospitality industry, be sure to visit from New York.



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