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International Journal of Trend in Scientific Research and Development (IJTSRD)
Volume 5 Issue 3, March-April 2021 Available Online: www.ijtsrd.com e-ISSN: 2456 – 6470
@ IJTSRD | Unique Paper ID – IJTSRD38671 | Volume – 5 | Issue – 3 | March-April 2021 Page 209
Impact of Covid-19 on Restaurant Industry
Akhilesh Pandey
Associate Professor, Asia Pacific Institute of Management, Ahmedabad, Gujarat, India
ABSTRACT
The rise in corona virus cases is a rising government concern. Any industry
has faced problems since the WHO proclaimed corona virus a pandemic.
Restaurants had to cease their activities because only critical facilities were
permitted during the lockout. The purpose of the analysis is to explore
consumer demand for the restaurant industry. Data were obtained by an
online survey using questionnaires. This research examined the shift in
customers' tastes using the Henry Garret approach and the Percentage
method. The tastes of restaurants before and after Covid-19 are significantly
modified. This research addresses the issues concerning Covid-19's effect on
the restaurants definitively.
KEYWORDS: Caterer, System of Garrett Rating, COVID-19
How to cite this paper: Akhilesh Pandey
"Impact of Covid-19 on Restaurant
Industry" Published
in International
Journal of Trend in
Scientific Research
and Development
(ijtsrd), ISSN: 2456-
6470, Volume-5 |
Issue-3, April 2021,
pp.209-213, URL:
www.ijtsrd.com/papers/ijtsrd38671.pdf
Copyright © 2021 by author(s) and
International JournalofTrendinScientific
Research and Development Journal. This
is an Open Access article distributed
under the terms of
the Creative
CommonsAttribution
License (CC BY 4.0)
(http://creativecommons.org/licenses/by/4.0)
COVID-19
Covid-19 is a severe acute respiratory syndrome viral
disorder with Coronavirus-2 (SARS-CoV-2). The virus was
first detected in Wuhan, China in December 2019 and
remains a pandemic. The infection is characterized by
headache, cough, breath lack, loss of taste and scent. It is a
transmitted illness that is distributed by coughing, sneezing
and communicating by tiny droplets. To prevent this
infection, it is much needed to maintain a healthy physical
distance, use mask and sanitizer and by keeping unwashed
hands away from face. The statistics is shown as follows as
on 31/08/2020:
Country Total Cases Total Deaths
USA 6,173,236 187,224
Brazil 3,862,311 120,896
India 3,621,245 64,617
Russia 990,326 17,093
Peru 647,166 28,788
South Africa 625,056 14,028
Colombia 607,938 19,364
Mexico 595,841 64,158
Spain 455,621 29,011
Chile 409,974 11,244
Source: https://www.worldometers.info/coronavirus/
OBJECTIVES
1. To examine the impact of COVID-19 on the preferences
of the customers regarding food at restaurants.
2. To check the frequency of having food at restaurants
(Pre & Post COVID-19)
3. To examine the change in preference of customers
regarding the attributes before selecting a restaurant.
4. To examine the change in preference regarding
payment at “restaurants (Pre & Post COVID-19).”
5. To study the change in preference while ordering food
at “restaurants (Pre & Post COVID-19).”
RESEARCH METHODOLOGY
The research is focused on bothprimaryandsecondarydata,
but it was necessary to collect primary data, since it is a
major factor in the study of the role. Primaryknowledge was
obtained from an online poll of 110 individuals. Secondary
data is used only for reference purpose. Convenience
Sampling method has been used. A variety of papers and
blogs gathered the secondary results. Percentage method
and Henry Garrett Ranking Method has been used for data
analysis. Pie charts and Bar Graphs has been used to
represent the data.
REVIEW OF LITERATURE
(Lampropoulos, Aggelopoulos, & Paraschi, 2020)conducted
an empirical study on “The impactoftheCovid-19diseaseon
distance Super-Market Sales”. The researcher tried to
compare the preferences of Greek customers using sample
size of 230 customers. The researcher further foundthatthe
ongoing pandemic situation has affected the preferences of
customers regarding shopping. Due to the lockdown, the
preference of customers has been changed regarding the
channel of shopping andservice&conveniencehasalsobeen
added to the primary factors of customer choice of Super
Market.
(Laguna, Fiszman, Puerta, Chaya, & Tárrega, 2020)
conducted an empirical study using a sample of 362 Spanish
population studied “the food shopping habits during the
lockdown. The researcher found that there was a change in
IJTSRD38671
International Journal of Trend in Scientific Research and Development (IJTSRD) @ www.ijtsrd.com eISSN: 2456-6470
@ IJTSRD | Unique Paper ID – IJTSRD38671 | Volume – 5 | Issue – 3 | March-April 2021 Page 210
the shopping frequency but no change was observed in
shopping location.” The researcher further concluded that
the demand of those food products that are healthy
remained same and on the other side the demand of food
products having short shelf life descended during the
lockdown.
(Singh, Urvashi, & Singh, 2020) found that over the last six
years, India’s GDP hit the lowest levelin3rd quarter2019-20.
Covid19 has affected almost every sector of the economy.
The production level and the employment rates has
decreased amid Covid19. To overcome this problem and to
bring back the economy on its track, there is a need to move
from global to local, by using cash instead of depending on
complete cashless system and by using digital platform for
doing business.
(Bansal, Sharma, & Gautam, 2020) studied the” impact of
Covid-19 on Indian economy with special reference to GST.”
The researcher concluded that Covid-19 has affected every
sector of Indian economy, be it rail system, automobile
industry, restaurant industry etc. to run and manage
economy, government needs fund which is collected from
taxes. Due to the complete lockdown,therewasnoeconomic
activity conducted in the country which will also affect the
level of GST collection.
DATA ANALYSIS
Table 1 depicts the Demographic Profile of the respondents:
Table 1: Demographic Profile
Frequency Percent Cumulative Percent
Age
Up to 20 years 12 10.9 10.9
20 to 40 years 90 81.8 92.7
40 to 60 years 8 7.3 100
Total 110 100
Gender
Male 58 52.7 52.7
Female 52 47.3 100
Total 110 100
Educational Qualification
Up to Higher secondary 10 9.1 9.1
Graduate 24 21.8 30.9
Post Graduate 68 61.8 92.7
Other 8 7.3 100
Total 110 100
Occupation
Salaried 44 40 40
Self-employed 17 15.5 55.5
Student 42 38.2 93.6
Other 7 6.4 100
Total 110 100
Marital Status
Unmarried 77 70 70
Married 33 30 100
Total 110 100
Family type
Nuclear family 53 48.2 48.2
Joint family 57 51.8 100
Total 110 100
Annual Income
Below 1 lakh 18 16.4 16.4
1 to 2 lakh 19 17.3 33.6
2 to 3 lakh 21 19.1 52.7
Above 3 lakh 52 47.3 100
Total 110 100
Figure 1 explains the frequency of having food at restaurants pre and post COVID-19. There is substantial change in
preference of the customers regardingfood atrestaurant.InPre-Covid-19situation,maximumrespondentspreferred
once in a month and in Post-Covid-19 situation, maximum respondents want to have food at restaurants rarely.
International Journal of Trend in Scientific Research and Development (IJTSRD) @ www.ijtsrd.com eISSN: 2456-6470
@ IJTSRD | Unique Paper ID – IJTSRD38671 | Volume – 5 | Issue – 3 | March-April 2021 Page 211
Figure 2 explains the reason for having food outside. 54% respondents preferred outing with family/friends, 18%
preferred for different dining experience, 12% preferred Tasty food, 7% for Party, 6% preferred Bachelor and
rest 3% specified other option as the reasons.
Figure 3 explains that 69 respondents said that their friends, 27 said family, 8 said spouse and 6 said that their
colleagues have influenced them to visit a restaurant.
Figure 4 depicts the ranking of attributes before selecting a restaurant. By applying the Henry Garret Method, it is
found that in both pre and post Covid-19 situations, the most preferred attribute was Taste of food then Services
of the restaurant. The ranking for price and presentation of food has dropped down and on the other hand
respondents prefer cleanliness, nutrition and reputation of restaurant more as compared to pre Covid-19
situation.
International Journal of Trend in Scientific Research and Development (IJTSRD) @ www.ijtsrd.com eISSN: 2456-6470
@ IJTSRD | Unique Paper ID – IJTSRD38671 | Volume – 5 | Issue – 3 | March-April 2021 Page 212
Figure 5 explains that 96 out of 110 respondents have tried their favorite dishes at home.
Figure 6 depicts the preferable mode of payment at the restaurants. The impact of Covid-19 can also be seen on
the payment mode as the preferable mode in pre-Covid-19 was Cash that has changed to online transfer in post
Covid-19 situation.
Figure 7 depicts the preference while ordering food at restaurants. In Pre Covid-19 situation, most of the
respondents preferred to Eat in and on the other side in Post Covid-19 situation, least respondents prefer to Eat in
DISCUSSION:
This paper gave the insight into the impact of COVID-19 on
the preferences of consumers regarding restaurants.
Majority of the respondents are of 20-40 years of age
(81.8%) and are Male (52.7%). Most of the respondents are
Post –Graduate (61.8%) and are Unmarried (70%).Majority
of the respondents have joint family (51.8%). The
preferences of consumers have changed and the changed
preferences has become challenges forthe restaurateur.The
consumers prefer to take out or home delivery for theirfood
as they do not want to eat in. The preference has also
changed regarding the mode of payment as most of the
consumers prefer online transfer for contactless payment.
CONCLUSION
➢ “This paper analyzed the impact of Covid-19 on the
preference of the consumers regardingtherestaurants.”
It is found that the Covid-19 has affected the restaurant
industry badly first with the lockdown and secondly
with the changes in the preferences. To revive the
restaurant industry, the restaurateurs need to adopt
strategies to attract consumers. Some of the strategies
are:
➢ Not letting guests touch the doors and minimize the
contact with any surface.
➢ Tables and chairs should be sanitized regularly.
➢ Time-to-time Corona Test of staff.
International Journal of Trend in Scientific Research and Development (IJTSRD) @ www.ijtsrd.com eISSN: 2456-6470
@ IJTSRD | Unique Paper ID – IJTSRD38671 | Volume – 5 | Issue – 3 | March-April 2021 Page 213
➢ Reducing the number of tables to maintain distance.
➢ Restaurants should use disposal.
➢ Highlighting the sanitization techniques to attract more
customers.
➢ Taking online payment instead of cash payment.
➢ Deliver DIY (Do It Yourself) meal packets.
➢ Prior booking options to maintain a healthy distance.
➢ Adopting contactless and menu specific deliverysystem
Restaurants should be well ventilated.
ACKNOWLEDGEMENT
The second author (Taranjeet Kaur Matharu) is getting fund
from ICSSR. All the expenses from study design to final
submission are borne by ICSSR.
BIBLIOGRAPHY
[1] Bansal, N. K., Sharma, S., & Gautam, A. (2020). A Study
on Impact of COVID-19 a Global Pandemic on Indian
Economy: With special Context to Goods and Service
Tax. Journal of Xidian University, 1809-1818.
[2] Laguna, L., Fiszman, S., Puerta, P.,Chaya,C.,&Tárrega,
A. (2020). The impact of COVID-19 lockdown on food
priorities. Results from a preliminary study using
social media and an online survey with Spanish
consumers. Food Quality and Preference, 1-9.
[3] Lampropoulos, I., Aggelopoulos, E., & Paraschi, E. P.
[6]pabaney/420160/https://yourstory.com/2020/0
4/co (2020). The impact of the COVID-19 disease on
ronavirus-pandemic-restaurants-cloud-
kitchensdistance Super-Market sales. SSRN, 1-24.
lockdown-impact
[4] Singh, P. K., Urvashi, & Singh, V. (2020).COVID-19:[7]
https://www.cbre.co.in/da/global/research-
andIMPACT OF LOCKDOWN ON THE INDIAN
ECONOMY. reports/food-and-beverage-industry-
market-researchInternational Journal of Advanced
Research, 211-216. reports
[5] https://www.foodhospitality.in/lockdown-[8]
https://www.worldometers.info/coronavirus/
impact/day-16-the-government-needs-to-take-
moreactive-steps-for-the-survival-of-the-restaurant-
sectorchef-irfan-

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Impact of Covid 19 on Restaurant Industry

  • 1. International Journal of Trend in Scientific Research and Development (IJTSRD) Volume 5 Issue 3, March-April 2021 Available Online: www.ijtsrd.com e-ISSN: 2456 – 6470 @ IJTSRD | Unique Paper ID – IJTSRD38671 | Volume – 5 | Issue – 3 | March-April 2021 Page 209 Impact of Covid-19 on Restaurant Industry Akhilesh Pandey Associate Professor, Asia Pacific Institute of Management, Ahmedabad, Gujarat, India ABSTRACT The rise in corona virus cases is a rising government concern. Any industry has faced problems since the WHO proclaimed corona virus a pandemic. Restaurants had to cease their activities because only critical facilities were permitted during the lockout. The purpose of the analysis is to explore consumer demand for the restaurant industry. Data were obtained by an online survey using questionnaires. This research examined the shift in customers' tastes using the Henry Garret approach and the Percentage method. The tastes of restaurants before and after Covid-19 are significantly modified. This research addresses the issues concerning Covid-19's effect on the restaurants definitively. KEYWORDS: Caterer, System of Garrett Rating, COVID-19 How to cite this paper: Akhilesh Pandey "Impact of Covid-19 on Restaurant Industry" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456- 6470, Volume-5 | Issue-3, April 2021, pp.209-213, URL: www.ijtsrd.com/papers/ijtsrd38671.pdf Copyright © 2021 by author(s) and International JournalofTrendinScientific Research and Development Journal. This is an Open Access article distributed under the terms of the Creative CommonsAttribution License (CC BY 4.0) (http://creativecommons.org/licenses/by/4.0) COVID-19 Covid-19 is a severe acute respiratory syndrome viral disorder with Coronavirus-2 (SARS-CoV-2). The virus was first detected in Wuhan, China in December 2019 and remains a pandemic. The infection is characterized by headache, cough, breath lack, loss of taste and scent. It is a transmitted illness that is distributed by coughing, sneezing and communicating by tiny droplets. To prevent this infection, it is much needed to maintain a healthy physical distance, use mask and sanitizer and by keeping unwashed hands away from face. The statistics is shown as follows as on 31/08/2020: Country Total Cases Total Deaths USA 6,173,236 187,224 Brazil 3,862,311 120,896 India 3,621,245 64,617 Russia 990,326 17,093 Peru 647,166 28,788 South Africa 625,056 14,028 Colombia 607,938 19,364 Mexico 595,841 64,158 Spain 455,621 29,011 Chile 409,974 11,244 Source: https://www.worldometers.info/coronavirus/ OBJECTIVES 1. To examine the impact of COVID-19 on the preferences of the customers regarding food at restaurants. 2. To check the frequency of having food at restaurants (Pre & Post COVID-19) 3. To examine the change in preference of customers regarding the attributes before selecting a restaurant. 4. To examine the change in preference regarding payment at “restaurants (Pre & Post COVID-19).” 5. To study the change in preference while ordering food at “restaurants (Pre & Post COVID-19).” RESEARCH METHODOLOGY The research is focused on bothprimaryandsecondarydata, but it was necessary to collect primary data, since it is a major factor in the study of the role. Primaryknowledge was obtained from an online poll of 110 individuals. Secondary data is used only for reference purpose. Convenience Sampling method has been used. A variety of papers and blogs gathered the secondary results. Percentage method and Henry Garrett Ranking Method has been used for data analysis. Pie charts and Bar Graphs has been used to represent the data. REVIEW OF LITERATURE (Lampropoulos, Aggelopoulos, & Paraschi, 2020)conducted an empirical study on “The impactoftheCovid-19diseaseon distance Super-Market Sales”. The researcher tried to compare the preferences of Greek customers using sample size of 230 customers. The researcher further foundthatthe ongoing pandemic situation has affected the preferences of customers regarding shopping. Due to the lockdown, the preference of customers has been changed regarding the channel of shopping andservice&conveniencehasalsobeen added to the primary factors of customer choice of Super Market. (Laguna, Fiszman, Puerta, Chaya, & Tárrega, 2020) conducted an empirical study using a sample of 362 Spanish population studied “the food shopping habits during the lockdown. The researcher found that there was a change in IJTSRD38671
  • 2. International Journal of Trend in Scientific Research and Development (IJTSRD) @ www.ijtsrd.com eISSN: 2456-6470 @ IJTSRD | Unique Paper ID – IJTSRD38671 | Volume – 5 | Issue – 3 | March-April 2021 Page 210 the shopping frequency but no change was observed in shopping location.” The researcher further concluded that the demand of those food products that are healthy remained same and on the other side the demand of food products having short shelf life descended during the lockdown. (Singh, Urvashi, & Singh, 2020) found that over the last six years, India’s GDP hit the lowest levelin3rd quarter2019-20. Covid19 has affected almost every sector of the economy. The production level and the employment rates has decreased amid Covid19. To overcome this problem and to bring back the economy on its track, there is a need to move from global to local, by using cash instead of depending on complete cashless system and by using digital platform for doing business. (Bansal, Sharma, & Gautam, 2020) studied the” impact of Covid-19 on Indian economy with special reference to GST.” The researcher concluded that Covid-19 has affected every sector of Indian economy, be it rail system, automobile industry, restaurant industry etc. to run and manage economy, government needs fund which is collected from taxes. Due to the complete lockdown,therewasnoeconomic activity conducted in the country which will also affect the level of GST collection. DATA ANALYSIS Table 1 depicts the Demographic Profile of the respondents: Table 1: Demographic Profile Frequency Percent Cumulative Percent Age Up to 20 years 12 10.9 10.9 20 to 40 years 90 81.8 92.7 40 to 60 years 8 7.3 100 Total 110 100 Gender Male 58 52.7 52.7 Female 52 47.3 100 Total 110 100 Educational Qualification Up to Higher secondary 10 9.1 9.1 Graduate 24 21.8 30.9 Post Graduate 68 61.8 92.7 Other 8 7.3 100 Total 110 100 Occupation Salaried 44 40 40 Self-employed 17 15.5 55.5 Student 42 38.2 93.6 Other 7 6.4 100 Total 110 100 Marital Status Unmarried 77 70 70 Married 33 30 100 Total 110 100 Family type Nuclear family 53 48.2 48.2 Joint family 57 51.8 100 Total 110 100 Annual Income Below 1 lakh 18 16.4 16.4 1 to 2 lakh 19 17.3 33.6 2 to 3 lakh 21 19.1 52.7 Above 3 lakh 52 47.3 100 Total 110 100 Figure 1 explains the frequency of having food at restaurants pre and post COVID-19. There is substantial change in preference of the customers regardingfood atrestaurant.InPre-Covid-19situation,maximumrespondentspreferred once in a month and in Post-Covid-19 situation, maximum respondents want to have food at restaurants rarely.
  • 3. International Journal of Trend in Scientific Research and Development (IJTSRD) @ www.ijtsrd.com eISSN: 2456-6470 @ IJTSRD | Unique Paper ID – IJTSRD38671 | Volume – 5 | Issue – 3 | March-April 2021 Page 211 Figure 2 explains the reason for having food outside. 54% respondents preferred outing with family/friends, 18% preferred for different dining experience, 12% preferred Tasty food, 7% for Party, 6% preferred Bachelor and rest 3% specified other option as the reasons. Figure 3 explains that 69 respondents said that their friends, 27 said family, 8 said spouse and 6 said that their colleagues have influenced them to visit a restaurant. Figure 4 depicts the ranking of attributes before selecting a restaurant. By applying the Henry Garret Method, it is found that in both pre and post Covid-19 situations, the most preferred attribute was Taste of food then Services of the restaurant. The ranking for price and presentation of food has dropped down and on the other hand respondents prefer cleanliness, nutrition and reputation of restaurant more as compared to pre Covid-19 situation.
  • 4. International Journal of Trend in Scientific Research and Development (IJTSRD) @ www.ijtsrd.com eISSN: 2456-6470 @ IJTSRD | Unique Paper ID – IJTSRD38671 | Volume – 5 | Issue – 3 | March-April 2021 Page 212 Figure 5 explains that 96 out of 110 respondents have tried their favorite dishes at home. Figure 6 depicts the preferable mode of payment at the restaurants. The impact of Covid-19 can also be seen on the payment mode as the preferable mode in pre-Covid-19 was Cash that has changed to online transfer in post Covid-19 situation. Figure 7 depicts the preference while ordering food at restaurants. In Pre Covid-19 situation, most of the respondents preferred to Eat in and on the other side in Post Covid-19 situation, least respondents prefer to Eat in DISCUSSION: This paper gave the insight into the impact of COVID-19 on the preferences of consumers regarding restaurants. Majority of the respondents are of 20-40 years of age (81.8%) and are Male (52.7%). Most of the respondents are Post –Graduate (61.8%) and are Unmarried (70%).Majority of the respondents have joint family (51.8%). The preferences of consumers have changed and the changed preferences has become challenges forthe restaurateur.The consumers prefer to take out or home delivery for theirfood as they do not want to eat in. The preference has also changed regarding the mode of payment as most of the consumers prefer online transfer for contactless payment. CONCLUSION ➢ “This paper analyzed the impact of Covid-19 on the preference of the consumers regardingtherestaurants.” It is found that the Covid-19 has affected the restaurant industry badly first with the lockdown and secondly with the changes in the preferences. To revive the restaurant industry, the restaurateurs need to adopt strategies to attract consumers. Some of the strategies are: ➢ Not letting guests touch the doors and minimize the contact with any surface. ➢ Tables and chairs should be sanitized regularly. ➢ Time-to-time Corona Test of staff.
  • 5. International Journal of Trend in Scientific Research and Development (IJTSRD) @ www.ijtsrd.com eISSN: 2456-6470 @ IJTSRD | Unique Paper ID – IJTSRD38671 | Volume – 5 | Issue – 3 | March-April 2021 Page 213 ➢ Reducing the number of tables to maintain distance. ➢ Restaurants should use disposal. ➢ Highlighting the sanitization techniques to attract more customers. ➢ Taking online payment instead of cash payment. ➢ Deliver DIY (Do It Yourself) meal packets. ➢ Prior booking options to maintain a healthy distance. ➢ Adopting contactless and menu specific deliverysystem Restaurants should be well ventilated. ACKNOWLEDGEMENT The second author (Taranjeet Kaur Matharu) is getting fund from ICSSR. All the expenses from study design to final submission are borne by ICSSR. BIBLIOGRAPHY [1] Bansal, N. K., Sharma, S., & Gautam, A. (2020). A Study on Impact of COVID-19 a Global Pandemic on Indian Economy: With special Context to Goods and Service Tax. Journal of Xidian University, 1809-1818. [2] Laguna, L., Fiszman, S., Puerta, P.,Chaya,C.,&Tárrega, A. (2020). The impact of COVID-19 lockdown on food priorities. Results from a preliminary study using social media and an online survey with Spanish consumers. Food Quality and Preference, 1-9. [3] Lampropoulos, I., Aggelopoulos, E., & Paraschi, E. P. [6]pabaney/420160/https://yourstory.com/2020/0 4/co (2020). The impact of the COVID-19 disease on ronavirus-pandemic-restaurants-cloud- kitchensdistance Super-Market sales. SSRN, 1-24. lockdown-impact [4] Singh, P. K., Urvashi, & Singh, V. (2020).COVID-19:[7] https://www.cbre.co.in/da/global/research- andIMPACT OF LOCKDOWN ON THE INDIAN ECONOMY. reports/food-and-beverage-industry- market-researchInternational Journal of Advanced Research, 211-216. reports [5] https://www.foodhospitality.in/lockdown-[8] https://www.worldometers.info/coronavirus/ impact/day-16-the-government-needs-to-take- moreactive-steps-for-the-survival-of-the-restaurant- sectorchef-irfan-