# Covid effect on restaurant industry



## chiffonodd (Jul 26, 2020)

Hey guys i'm no pro but i've read a lot of really scary $%^# about the restaurant industry during the covid crisis. Sorry if this has been covered a ton already on the forum -- I'm just coming back after a few years messing around with other pursuits. Just wanted to say I hope you're weathering the storm and that the industry will be able to make a comeback when this is all over. Stay safe my friends. Wishing you all the best.


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## ian (Jul 26, 2020)

There’s a whole covid subforum now, actually! 






Corona-virus 19 related discussions


A forum for all discussions pertaining to the virus, face masks, medical issues, news, etc. If you wish to not see this forum, send Angie a private conversation asking to opt-out.



www.kitchenknifeforums.com


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## chiffonodd (Jul 27, 2020)

ian said:


> There’s a whole covid subforum now, actually!
> 
> 
> 
> ...



@ian thanks for letting me know


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## Luftmensch (Jul 27, 2020)

I was thinking about this a little the other day.

As much as I hate what the gig economy has done to workers rights, the likes of UberEats/Foodora/Deliveroo have been a life line for restaurants in my part of the world. It allowed them to continue trading. Without it, many would have likely gone insolvent during lock down.


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## chiffonodd (Jul 27, 2020)

Luftmensch said:


> I was thinking about this a little the other day.
> 
> As much as I hate what the gig economy has done to workers rights, the likes of UberEats/Foodora/Deliveroo have been a life line for restaurants in my part of the world. It allowed them to continue trading. Without it, many would have likely gone insolvent during lock down.



A blessing and a curse to be sure.


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## juice (Jul 27, 2020)

Luftmensch said:


> As much as I hate what the gig economy has done to workers rights, the likes of UberEats/Foodora/Deliveroo have been a life line for restaurants in my part of the world. It allowed them to continue trading. Without it, many would have likely gone insolvent during lock down.


It has here too, but the 30 per cent commission they take is slowly draining them at the same time. Short-term survival, but longer term killing them. Ubereats is (for most people (consumers)) a sign that laziness trumps thinking slightly longer term.


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## Luftmensch (Jul 27, 2020)

The idea of ghost restaurants kind of blew my mind the first time I heard of it. I am sure it is blindingly obvious if you are in the trade. While the idea has been around for ages (e.g. Pizza Hut), I hadn't thought about how UberEats/Foodora/Deliveroo could make that possible for practically anything.

I dont think ghost restaurants are so common here... I am not 'in the biz', so I could be wrong. What I do see a lot of is smaller restaurants doing many times more volume than they have internal capacity. For example, my favourite local and reasonably priced Japanese probably only seats 20 but there is a non-stop stream of delivery services trampling through the restaurant. I really like the chef and the food... but the constant opening and closing of the door reduces the atmospherics. I also think it would be nice if customers in the actual restaurant had their orders put at the front of the queue. On the whole these are minor irritations but I can think of a few locals where the experience is similar...


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## Eziemniak (Jul 27, 2020)

In Spain I see easily 30% of establishments closing forever this year.
Things most likely to survive will be on either side of spectrum of business, expensive fine dining catering to the rich and famous (hence the new openings by Berasategi, Munoz or Dani Garcia in the middle of the worst recession on record) and local tavernas serving workers (even though these took a hit as well with rise of telework).
Even in fairly recession proof areas such as Marbella or Ibiza places serving and depending on mass tourism will struggle as this season is already a loss making one, and foreclosures are increasing.
In the end it is a domino effect in countries like Spain, Thailand or Greece where there is simply too much capacity for this years numbers (and following one as well?), and once the hotels are empty everything else follows.
Interestingly there has been a significant increase in real estate on sale, as people are trying to prop up their businesses with sales of mom and pop apartments etc.
As far as the workforce is concerned it is and will be very darwinian process, with the weak suffering and only the most qualified and connected surviving.


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