The 360 | Will the restaurant industry survive the coronavirus pandemic?
“Open for takeout and delivery.” The slogan, or some variation, has been plastered on the windows of restaurant after restaurant in the weeks since the coronavirus pandemic hit the U.S. As the virus continues to spread, many state governments have ordered dining establishments to close or limit their seating areas to prevent further contagion.
Restaurants scrambled to adjust to takeout or delivery models to stay afloat, and some states modified alcohol licensing regulations to allow bars to deliver alcohol. But a delivery-only plan isn’t viable for all eateries, and some have simply shut down, hoping to reopen once the worst of the pandemic passes and people can safely gather again.
As the coronavirus spreads and restrictions tighten, owners across the United States are facing a dilemma as they weigh public health and economic setbacks and their employees’ safety and financial security. Restaurants often operate on narrow profit margins, and for some the decision to shut down temporarily could lead to permanent closure. It’s not only about the owners: The more than 5 million people employed in the food and beverage industry in the United States also need to pay their bills.
Others say restaurants should stay open for takeout to try to preserve the business and employment of as many workers as possible. Takeout and deliveries, as well as gift cards, can help mitigate sales losses, which could save a restaurant. Remaining open also helps to put money in workers’ pockets to pay their own bills at home, even if the restaurant cannot turn a profit. More restaurants are expected to close as the outbreak continues across America.
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