Social Distancing Rules are bad for the Restaurant Industry- My Experience

in #covid4 years ago

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Pixabay.

As a former restaurant worker, I understand that COVID-19 social distancing rules will devastate the industry.

When I worked in a restaurant, my ambition was to move into management. I worked at a chain of Mexican restaurants, and was partnered with a manager who was thinking of expanding. This was during the 2010-2019 economic recovery, and business was booming in the metro area where I lived. The industry depended on a full house of customers, minimizing staff onsite and upselling guests. This is standard, and our profits were between 3-5% after everything was said and done. This business model works when the economy is running smoothly, people have money to spend and you are in an area with high traffic. Currently, none of those conditions exist.

Social distancing requirements necessitate that patrons sit 6' away from others and wear masks when arriving. Patrons must also make reservations to ensure there is enough space. The average restaurant profit margin is around 3%, and depends on packing the house. In addition, the lunch rush in urban areas is essentially canceled due to working from home arrangement. This is a nail in the restaurant coffin, as a lunch rush is so necessary for profit and survival. If you don't have customers pouring in your door, you cannot make rent in expensive urban areas, and thus the problem is circular. Bad locations kill restaurants, so it is a catch-22 situation.

With the added restrictions, necessity to make reservations and negative economic outlook, the restaurant industry is in big trouble.

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