According to an article by Rolling Stone the restaurant industry is the second-largest private employer in the nation and was one of the first dominoes to fall in the economic devastation of the coronavirus pandemic.
- 60% portion of job losses in the U.S. in March that were in the hospitality industry.
- 9% portion of federal Paycheck Protection funds that were awarded to restaurants as of mid-April.
- 60% portion of owners who don’t believe federal relief efforts will help them keep employees on payroll, according to a National Restaurant Association survey.
- $30 billion amount of revenue the U.S. restaurant industry lost in March.
- 30,000 number of U.S. restaurants shut down permanently because of COVID-19 as of April 1st, according to a UBS analysis.
- 30% chance a restaurant has of staying open if the coronavirus crisis lasts four months, according to the National Bureau of Economic Research.
- $240 billion Industry’s predicted loss by end of the year.
BORT, R. (2020). Can the Restaurant Industry Be Saved? Rolling Stone, 1340, 32–35
The virus came in and left workers scrambling to pay rent, feed their families, and figure out whether there will be a job for them to come back to. Business owners are left paying the bills and are trying to keep their head above water. The industry needs a revamp of its business model (even before the coronavirus struck) to keep up to date with the on going changes. With all of these statistics it is obvious that now it’s going to have to, and independent owners will need to plan creative solutions as they stare down what could be multiple fallow years. A lot of restaurants will be struggling for quite some time for the foreseeable future, unless they continue to innovate and continue to change their business model.
The big companies that have come in the past few years to try to revamp the hospitality industry with delivery apps or fancy expensive POS system processes are actually destroying it. Due to the high volume of consumers using the apps and the need for online ordering, the restaurants have no other option but to get these expensive apps. The big wigs have not helped the restaurants what so ever during the pandemic but have almost made it impossible for them to grow revenue.
There are solutions out there that offer a massive amount of innovation and will keep restaurants open that abide by all of the ever-changing restrictions. With aBitNow you are allowed to process online orders for dine-in and curbside/takeout easier and much less expensively. Our online ordering system allows you to fully customize your menu and make changes “on the fly”. You can offer your full menu or just a sampling. Our experts will fully integrate with your existing POS system or can even provide that service to you.
aBitNow is a contactless ordering and payment system using a simple web browser (no guest-app required). Unlike those take-out only apps, you pay no service fee per transaction and your customers pay us only a dollar or less convenience fee to aBitNow. Putting the profit back into your pocket.