How Has Coronavirus Affected the Food Service and Events Industry? [STUDY]

At the end of March, at the peak of the economic freeze caused by the coronavirus epidemic, 67 percent of companies and venues in Poland's food service and events industry halted operations entirely — according to an analysis by Briefly.

Six months later, venues and event spaces can operate again, albeit with certain restrictions. It comes as no surprise, then, that even after the economy was unfrozen and restaurants and event spaces were allowed to reopen, 9 out of 10 companies report that their turnover has fallen compared to the period before the pandemic broke out in March 2020.

When asked about their biggest challenge, the word most frequently repeated by restaurant, club and event organisers is "survive".

"As a club, we still cannot operate. A paradox — how are we supposed to keep 8 employees for a year (the assumptions of the Shield and PFR subsidies) when we still have to pay other expenses such as rent, electricity and other fixed costs the whole time, while our operations have been blocked? Turnover has fallen by more than 80% every month from March until now. We run a cocktail bar that doesn't even generate 20% of its turnover in comparable periods a year earlier," calculates the owner of a club in Warsaw.

"The challenges haven't changed. The pandemic has set the company back to where it was a few years ago, and we have to make that up," wrote one restaurant owner.

The situation looks somewhat better when it comes to employment levels. 4 out of 10 companies managed to keep employment at the same level as before March 2020. The surveyed entrepreneurs and managers often point out that keeping the team together is one of their biggest challenges, but also one of their priorities.

Sentiment about the future of their companies is strongly divided, though restaurant and café owners are somewhat more optimistic than event organisers.

How coronavirus has affected the food service and events industry in practice

One in three respondents is convinced that their company's situation will gradually improve. 40 percent of respondents think otherwise. Nearly one in four companies cannot assess what the future will bring.

Customers' concerns

Customers' concerns

Some industry representatives point to people's fears about organising events, including small gatherings such as birthdays, which has a huge impact on the condition of the entire industry.
"How do we attract customers despite their fears?" asks one entrepreneur. "What can be done so that people want to enjoy entertainment again, and not just essential services?" wonders another.

It seems that the attitude and behaviour of ordinary people... when they are not in venues... will be decisive. — The restaurant and events industries need responsibility and common sense from all of us, everywhere we go — in public spaces, on public transport, in offices, in schools. The more sensible our behaviour is, the fewer infections there will be. Thanks to this, we will give our favourite restaurants, cafés and clubs — and above all the employees working there — a chance to continue operating. There is a lot of talk (rightly) about protecting the most vulnerable people from coronavirus (the elderly, those with chronic illnesses). It is worth remembering that by wearing a mask we also help a large group of people keep their jobs — comments Tomasz Szczęśniak, co-founder and CEO of Briefly.

Parties and occasional receptions

Parties and occasional receptions

The vast majority of venues and event companies are recording a lower number of occasional events organised. Only 8 percent indicate that they are organising more events than before March 2020.

Takeaway food

Takeaway food

Despite many campaigns encouraging takeaway orders, venues did not manage to significantly increase sales on this account. One in five respondents has not noticed a difference now compared to the period before March. Takeaway sales are also not the answer to the difficult situation of companies organising private events, hotels, pubs or clubs that do not offer food service.

Promotion of venues and services

Promotion of venues and services

Venues and event organisers do not intend to give up promoting their venues and services. Only 13 percent of respondents declare that they do not intend to invest in promoting their company. At least one activity is planned by 87 percent of companies, with promotion most often limited to the company's presence on social media.

Summary

The Briefly study shows that the coronavirus pandemic hit the food service and events industry hard. At the peak of the lockdown, 67 percent of companies halted operations entirely, and after the economy was unfrozen, 9 out of 10 entrepreneurs are recording a drop in turnover. The most frequently repeated challenge is "survive", and sentiment is divided: one in three respondents hopes for improvement, while 40 percent think otherwise. Despite promotional campaigns, takeaway sales have not compensated for the losses, and only 8 percent of companies are organising more events than before March 2020. Experts emphasise that social responsibility and adherence to sanitary rules are key, giving venues a chance to keep operating and preserve jobs.