A Critical Review of COVID-19 Pandemic Outbreak in the Restaurant Industry
Abstract
Food Service Industry (FSI) was one of the hardest hit during the outbreak of COVID-19 as they were shutdown to control the spread of the virus across society. The COVID-19 pandemic almost nullified the organized and unorganized restaurant business across the country. Dining out is one of the most popular social activities in a metropolitan city like Coimbatore (popularly known as Manchester of South India), the city has branches of popular restaurant chains from across the globe. Measures such as lockdown, social distancing, and dine-in restrictions adopted by the government to slow down the spread of the virus, have imparted huge loss to the FSI that has in turn severely affected the livelihood of millions of restaurant workers in the country with Coimbatore being no exception. In this background, the authors have studied the case of impact of COVID-19 on restaurants with special reference to Coimbatore. Primary data from restaurants were used for this study. The findings based on the data provide a significant contribution to the FSI, and identify the factors that need to be tapped to frame a strategy to increase the sales volume in upcoming pandemic-like situations. Also, the authors have suggested following the Standard Operating Procedure (SOP) instructed by the government even after the pandemic.
References
[1] Alonso-Almeida, M., Bremser, K., and Llach, J. 2015. Proactive and Reactive Strategies Deployed by Restaurants in Times of Crisis: Effects on Capabilities, organization, and Competitive Advantage. International Journal of Contemporary Hospitality Management, 27: 1641–1661. DOI:https://doi.org/10.1108/ijchm-03-2014-0117
[2] Bartik, A., et al. 2020. National Bureau of Economic Research, How are Small Businesses Adjusting to COVID-19? Early Evidence from a Survey. NBER Working Paper No. 26989. DOI:https://doi.org/10.3386/w26989
[3] Baum, T., and Hai, N. T. T. 2020. Hospitality, Tourism, Human Rights and the Impact of COVID. International Journal of Contemporary Hospitality Management, 32 (7): 2397-2407. DOI: https://doi.org/10.1108/ijchm-03-2020-0242
[4] Ding, W., Levine, R., Linand C., and Xie, W. 2020. Corporate Immunity to the COVID-19 Pandemic. Working Paper 27055, Massachusetts: National Bureau of Economic Research.
[5] Gu, C. and Kim, Y. J. 2002. Penalized Likelihood Regression: General Formulation and Efficient Approximation. Canadian Journal of Statistics, 30(4): 619-628. DOI: https://doi.org/10.2307/3316100
[6] Gursoy, D and Chi, C. G. 2020. Effects of COVID-19 Pandemic on Hospitality Industry: Review of the Current Situations and a Research Agenda. Journal of Hospitality Marketing and Management, 29(5): 527–529. DOI: https://doi.org/10.1080/19368623.2020.1788231
[7] Haas, T. J. 2008. Today's Foodservice Industry Demands Strong Leadership. Business Publications.
[8] Jung, S., and Jang, S. 2019. To Cluster or Not to Cluster?: Understanding Geographic Clustering by Restaurant Segment. International Journal of Hospitality Management, 77: 448–457. DOI:https://doi.org/10.1016/j.ijhm.2018.08.008
[9] Kalaivani, R., and Girija, P. 2018. A Study on Consumer Perception and Satisfaction towards Restaurants about Coimbatore City. Journal of Emerging Technologies and Innovative Research, 5(6): 421-434.
[10] Kim, J., Jun, J., Tang, L. R., and Zheng, T. 2018. The Behavioral and Intermediate Effects of Advertising on Firm Performance: An Empirical Investigation of the Restaurant Industry. Journal Hospitality and Tourism Research, 42: 319–337. DOI: https://doi.org/10.1177/1096348015597031
[11] Kim, J., Kim, J, Lee, S. K., and Tang L. R. 2020. Effects of Epidemic Disease Outbreaks on Financial Performance of Restaurants: Event Study Method Approach. Journal Hospitality and Tourism Management, 43: 32–41 DOI: https://doi.org/10.1016/j.jhtm.2020.01.015
[12] Leung, P., and Lam T. 2004. Crisis Management during the SARS Threat: A Case Study of the Metropole Hotel in Hong Kong. Journal of Human Resource of Hospitality and Tourism, 3(1): 47–57. DOI:https://doi.org/10.1300/j171v03n01_05
[13] MacDonald, M., Piazza, R., and Sher, G. 2020. A Simple Guide to Estimating the Impact of COVID-19 on Travel and Hospitality Activity, IMF-Special Series on COVID-19, pp.1-10.
[14] Mehrotra, A. 2020. The Indian Restaurant Industry Will Never be the Same. Available at: https://cio.economictimes.indiatimes.com/news/corporate-news/the-indian-restaurant-industry-will-never-be-the-same/75157663
[15] Meneguel, C. R. D. A., Mundet, L. and Aulet, S. 2019. The Role of a High-Quality Restaurant in Stimulating the Creation and Development of Gastronomy Tourism. International Journal of Hospitality Management, 83: 220–228. DOI: https://doi.org/10.1016/j.ijhm.2018.10.018
[16] Ozili, P. K., and T. Arun, T. 2020. Spillover of COVID-19: Impact on the Global Economy. pp 27. DOI:http://dx.doi.org/10.2139/ssrn.3562570
[17] Parsa, H. G., and Gregory, A. J. 2020. Why Do Restaurants Fail? Part III: An Analysis of Macro and Micro Factors. FL, USA: The Dick Pope Sr. Institute for Tourism Studies: Winter Haven, pp. 20- 28.
[18] Parsa, H. G., Self, J. T., Sydnor-Busso, S., and Yoon, H. J. 2011. Why Restaurants Fail? Part II—The Impact of Affiliation, Location, and Size on Restaurant Failures: Results from a Survival Analysis. Journal of Foodservice Business and Research, 14: 360–379. DOI: https://doi.org/10.1080/15378020.2011.625824
[19] Pressman, P., Naidu, A. S., and Clemens, R. 2020. COVID-19 and Food Safety: Risk Management and Future Considerations. Nutrition Today, 55(3): 125–128. DOI: https://doi.org/10.1097/nt.0000000000000415
[20] Santich, B. 2004. The Study of Gastronomy and its Relevance to Hospitality Education and Training. International Journal of Hospitality Management, 23: 15–24. DOI: https://doi.org/10.1016/s0278-4319(03)00069-0
[21] Severson, K., and Yaffe-Bellany, D. March 20, 2020. Independent restaurants brace for the unknown. The New York Times. Available at: https://www.nytimes.com/2020/03/20/dining/local-restaurants-coronavirus.html
[22] Sigala, M. 2020. Tourism and COVID-19: Impacts and Implications for Advancing and Resetting Industry and Research. Journal of Business Research, 117: 312–321. DOI: https://doi.org/10.1016/j.jbusres.2020.06.015
[23] Song, H. J., Yeon J., and Lee, S. 2020. Impact of the COVID-19 Pandemic: Evidence from the US Restaurant Industry. International Journal of Hospitality Management, 92: 1–7. DOI:https://doi.org/10.1016/j.ijhm.2020.102702
[24] Vig, S., and Agarwal, R. N. 2021. Repercussions of COVID-19 on Small Restaurant Entrepreneurs: The Indian context. Strategic Change, 30(2): 145–152. DOI: https://doi.org/10.1002/jsc.2398
[25] Wang, Y. 2009. The Impact of Crisis Events and Macroeconomic Activity on Taiwan‘s International Inbound Tourism Demand. Tourism Management, 30: 75–82. DOI: https://doi.org/10.1016/j.tourman.2008.04.010
[26] Watanabe, T., and Omori, Y. 2020. How Much Did People Refrain from Service Consumption Due to the Outbreak of COVID-19?, Center for Advanced Research in Finance, Faculty of Economics, The University of Tokyo CARF F-Series; pp.477.
[27] Yang, Y., Liu, H., and Chen, X. 2020. COVID-19 and Restaurant Demand: Early Effects of the Pandemic and Stay-at-Home orders. International Journal of Contemporary Hospitality Management, 13(12): 3809–3834. DOI: https://doi.org/10.1108/ijchm-06-2020-0504
[28] Zeb, S., Hussain, S. S., Javed, A., and Jim Wu, Y. C. 2021. COVID-19 and A Way Forward for Restaurants and Street Food Vendors. Cogent Business & Management, 8(1): 10. DOI:https://doi.org/10.1080/23311975.2021.1923359
[29] Centers for Disease Control and Prevention. 2020. Cases in the U.S. Available at: https://www.nytimes.com/interactive/2021/us/covid-cases.html
[30] Statista Research Department. 2021. https://www.statista.com/statistics/1104835/coronavirus-travel-tourism-employment-loss/
[31] World Health Organization - Covid Timeline. 2020. Available at: https://www.who.int/news/item/29-06-2020-covidtimeline
[32] Zomato. 2020. State of the Restaurant Industry in India. Available at: https://www.zomato.com/blog/wp-content/uploads/2020/08/Indian-Restaurant-Industry-%E2%80%93%E2%80%93-Mid-COVID-19-Report.pdf
[2] Bartik, A., et al. 2020. National Bureau of Economic Research, How are Small Businesses Adjusting to COVID-19? Early Evidence from a Survey. NBER Working Paper No. 26989. DOI:https://doi.org/10.3386/w26989
[3] Baum, T., and Hai, N. T. T. 2020. Hospitality, Tourism, Human Rights and the Impact of COVID. International Journal of Contemporary Hospitality Management, 32 (7): 2397-2407. DOI: https://doi.org/10.1108/ijchm-03-2020-0242
[4] Ding, W., Levine, R., Linand C., and Xie, W. 2020. Corporate Immunity to the COVID-19 Pandemic. Working Paper 27055, Massachusetts: National Bureau of Economic Research.
[5] Gu, C. and Kim, Y. J. 2002. Penalized Likelihood Regression: General Formulation and Efficient Approximation. Canadian Journal of Statistics, 30(4): 619-628. DOI: https://doi.org/10.2307/3316100
[6] Gursoy, D and Chi, C. G. 2020. Effects of COVID-19 Pandemic on Hospitality Industry: Review of the Current Situations and a Research Agenda. Journal of Hospitality Marketing and Management, 29(5): 527–529. DOI: https://doi.org/10.1080/19368623.2020.1788231
[7] Haas, T. J. 2008. Today's Foodservice Industry Demands Strong Leadership. Business Publications.
[8] Jung, S., and Jang, S. 2019. To Cluster or Not to Cluster?: Understanding Geographic Clustering by Restaurant Segment. International Journal of Hospitality Management, 77: 448–457. DOI:https://doi.org/10.1016/j.ijhm.2018.08.008
[9] Kalaivani, R., and Girija, P. 2018. A Study on Consumer Perception and Satisfaction towards Restaurants about Coimbatore City. Journal of Emerging Technologies and Innovative Research, 5(6): 421-434.
[10] Kim, J., Jun, J., Tang, L. R., and Zheng, T. 2018. The Behavioral and Intermediate Effects of Advertising on Firm Performance: An Empirical Investigation of the Restaurant Industry. Journal Hospitality and Tourism Research, 42: 319–337. DOI: https://doi.org/10.1177/1096348015597031
[11] Kim, J., Kim, J, Lee, S. K., and Tang L. R. 2020. Effects of Epidemic Disease Outbreaks on Financial Performance of Restaurants: Event Study Method Approach. Journal Hospitality and Tourism Management, 43: 32–41 DOI: https://doi.org/10.1016/j.jhtm.2020.01.015
[12] Leung, P., and Lam T. 2004. Crisis Management during the SARS Threat: A Case Study of the Metropole Hotel in Hong Kong. Journal of Human Resource of Hospitality and Tourism, 3(1): 47–57. DOI:https://doi.org/10.1300/j171v03n01_05
[13] MacDonald, M., Piazza, R., and Sher, G. 2020. A Simple Guide to Estimating the Impact of COVID-19 on Travel and Hospitality Activity, IMF-Special Series on COVID-19, pp.1-10.
[14] Mehrotra, A. 2020. The Indian Restaurant Industry Will Never be the Same. Available at: https://cio.economictimes.indiatimes.com/news/corporate-news/the-indian-restaurant-industry-will-never-be-the-same/75157663
[15] Meneguel, C. R. D. A., Mundet, L. and Aulet, S. 2019. The Role of a High-Quality Restaurant in Stimulating the Creation and Development of Gastronomy Tourism. International Journal of Hospitality Management, 83: 220–228. DOI: https://doi.org/10.1016/j.ijhm.2018.10.018
[16] Ozili, P. K., and T. Arun, T. 2020. Spillover of COVID-19: Impact on the Global Economy. pp 27. DOI:http://dx.doi.org/10.2139/ssrn.3562570
[17] Parsa, H. G., and Gregory, A. J. 2020. Why Do Restaurants Fail? Part III: An Analysis of Macro and Micro Factors. FL, USA: The Dick Pope Sr. Institute for Tourism Studies: Winter Haven, pp. 20- 28.
[18] Parsa, H. G., Self, J. T., Sydnor-Busso, S., and Yoon, H. J. 2011. Why Restaurants Fail? Part II—The Impact of Affiliation, Location, and Size on Restaurant Failures: Results from a Survival Analysis. Journal of Foodservice Business and Research, 14: 360–379. DOI: https://doi.org/10.1080/15378020.2011.625824
[19] Pressman, P., Naidu, A. S., and Clemens, R. 2020. COVID-19 and Food Safety: Risk Management and Future Considerations. Nutrition Today, 55(3): 125–128. DOI: https://doi.org/10.1097/nt.0000000000000415
[20] Santich, B. 2004. The Study of Gastronomy and its Relevance to Hospitality Education and Training. International Journal of Hospitality Management, 23: 15–24. DOI: https://doi.org/10.1016/s0278-4319(03)00069-0
[21] Severson, K., and Yaffe-Bellany, D. March 20, 2020. Independent restaurants brace for the unknown. The New York Times. Available at: https://www.nytimes.com/2020/03/20/dining/local-restaurants-coronavirus.html
[22] Sigala, M. 2020. Tourism and COVID-19: Impacts and Implications for Advancing and Resetting Industry and Research. Journal of Business Research, 117: 312–321. DOI: https://doi.org/10.1016/j.jbusres.2020.06.015
[23] Song, H. J., Yeon J., and Lee, S. 2020. Impact of the COVID-19 Pandemic: Evidence from the US Restaurant Industry. International Journal of Hospitality Management, 92: 1–7. DOI:https://doi.org/10.1016/j.ijhm.2020.102702
[24] Vig, S., and Agarwal, R. N. 2021. Repercussions of COVID-19 on Small Restaurant Entrepreneurs: The Indian context. Strategic Change, 30(2): 145–152. DOI: https://doi.org/10.1002/jsc.2398
[25] Wang, Y. 2009. The Impact of Crisis Events and Macroeconomic Activity on Taiwan‘s International Inbound Tourism Demand. Tourism Management, 30: 75–82. DOI: https://doi.org/10.1016/j.tourman.2008.04.010
[26] Watanabe, T., and Omori, Y. 2020. How Much Did People Refrain from Service Consumption Due to the Outbreak of COVID-19?, Center for Advanced Research in Finance, Faculty of Economics, The University of Tokyo CARF F-Series; pp.477.
[27] Yang, Y., Liu, H., and Chen, X. 2020. COVID-19 and Restaurant Demand: Early Effects of the Pandemic and Stay-at-Home orders. International Journal of Contemporary Hospitality Management, 13(12): 3809–3834. DOI: https://doi.org/10.1108/ijchm-06-2020-0504
[28] Zeb, S., Hussain, S. S., Javed, A., and Jim Wu, Y. C. 2021. COVID-19 and A Way Forward for Restaurants and Street Food Vendors. Cogent Business & Management, 8(1): 10. DOI:https://doi.org/10.1080/23311975.2021.1923359
[29] Centers for Disease Control and Prevention. 2020. Cases in the U.S. Available at: https://www.nytimes.com/interactive/2021/us/covid-cases.html
[30] Statista Research Department. 2021. https://www.statista.com/statistics/1104835/coronavirus-travel-tourism-employment-loss/
[31] World Health Organization - Covid Timeline. 2020. Available at: https://www.who.int/news/item/29-06-2020-covidtimeline
[32] Zomato. 2020. State of the Restaurant Industry in India. Available at: https://www.zomato.com/blog/wp-content/uploads/2020/08/Indian-Restaurant-Industry-%E2%80%93%E2%80%93-Mid-COVID-19-Report.pdf
Published
2022-09-30
How to Cite
RAJA, Perumal et al.
A Critical Review of COVID-19 Pandemic Outbreak in the Restaurant Industry.
Journal of Environmental Management and Tourism, [S.l.], v. 13, n. 6, p. 1697-1704, sep. 2022.
ISSN 2068-7729.
Available at: <https://journals.aserspublishing.eu/jemt/article/view/7281>. Date accessed: 19 apr. 2024.
Section
Article
Copyright© 2023 The Author(s). Published by ASERS Publishing 2023. This is an open access article distributed under the terms of CC-BY 4.0 license.