The Effects Of Covid-19 On the Restaurant Industry

The current global pandemic that is novel coronavirus also known as Covid-19, has had various effects on many aspects of most of our everyday lives. Some of us have lost our jobs, some of us have been infected with the virus, and some of us have even lost a loved one due to covid-19. There is no doubt that the effects of the pandemic have been devastating and life as we used to know it may never be the same again. One of the most prominent industries in the world that has been affected by the pandemic is the restaurant industry. Most of us love food and have some sort of relationship with food whether we are aware of it or not. Restaurants have been an important aspect of many people’s daily lives, especially for those who own and are employed by restaurants. However many restaurants are struggling to stay open and some have been forced to close permanently due to the varying external effects brought onto them by the covid-19 pandemic.

One major effect that has devastated the restaurant industry is the fact that they now are only able to operate at 25 percent capacity. This came after an announcement made by Governor Cuomo on September 30, 2020. Although this was a step in the right direction, as before this ban was lifted, only outdoor dining was allowed and even before that many restaurants temporarily closed, operating at only 25 percent capacity is simply not enough to keep New York City’s restaurants afloat. Many of New York City’s popular restaurateur’s share the same sentiment as I do and have been willing to speak out about the effects of operating at only 25 percent capacity. In an interview conducted between a reporter from CNBC Television and local restaurateur Jordan Andino, Andino discusses his feelings and experience with how operating at 25 percent capacity has been for him. 

TELEVISION, CNBC. “N.Y.C. Restaurateur on the Impact of the Restart of Indoor Dining.” YOUTUBE, 30 Sept. 2020, www.youtube.com/watch?v=Qg3rTr3Y5XI. 

Andino talks about the size of his restaurant and how operating at 25 percent capacity for a small restaurant like his, means that he can only have “two or three people” inside at a time. Most successful New york City restaurants pre covid-19 were able to operate at 100 capacity, I mention this to say that the profits from being able to operate at full capacity to being able to only operate at 25 percent capacity are going to be marginally different. Andino also brings up a great point that I myself have not given any thought, that being the size of the restaurant itself. Operating at 25 percent capacity for a restaurant that can normally seat 70 people at a time is much different than a restaurant that can normally seat 15 people at a time. Most restaurants in New York City are small and simply cannot sustain themselves off of two to three patrons every couple of hours or so. Nonetheless operating at 25 percent capacity indoors with outdoor dining still in effect is a step in the right direction for the restaurant industry.

During my research of the effects of Covid-19 on New York City’s restaurant industry, I had the pleasure of interviewing a young girl by the name of Waverly Place Jong, whose family owns a Chinese bakery beneath the apartment in which they live. Being the daughter of parents who own a bakery in New York City, Waverly Jong would know firsthand one of the most negative effects that have taken place due to Covid-19. That effect is the xenophobia that some Chinese restaurants have experienced as a result of the novel coronavirus. Covid-19 is a virus that started in Wuhan, China and has since spread around the world. With America being a diverse country with many states having their own little versions of Chinatown, there are restaurants that have experienced a decrease in traffic. This decrease in traffic comes from xenophobia of eating at Chinese restaurants. Xenophobia is a prejudice against people from other countries. Below is an interview between Waverly Place Jong as well as a local owner of a supermarket known as the New Saigon Market. The owner of the Supermarket chose to remain anonymous.

The dialogue between Waverly Place Jong and the owner of the new Saigon Market, shows just how much of a toll that not only Covid-19 has taken on the restaurant industry but it actually brings to life a very real issue of xenophobia. It seems to be a topic of discussion that is forgotten about or not brought to the attention of the media, but is one that deserves attention nonetheless.

Although there are many restaurants who continue to suffer and plummet due to the Covid-19 pandemic, there are bits and pieces of good news for restaurants that surface here and there. According to an article written by Michael Herzenberg of Spectrum News staff, The city council of NYC has begun to allow Restaurants to add an additional surcharge to patrons bills. 

Herzenberg, Michael, and Spectrum News Staff. “Restaurant and Bar Coronavirus Surcharge Takes Effect.” NYC Restaurant and Bar Coronavirus Surcharge Takes Effect, 16 Oct. 2020, www.ny1.com/nyc/all-boroughs/news/2020/10/16/nyc-restaurant-and-bar-coronavirus-surcharge-takes-effect. 

This charge is not a mandatory fee that must be added however and can be used at the discretion of the restaurants. This additional surcharge can be added as an additional fee of up to 10 percent. This 10 percent additional surcharge is helpful for many restaurants if they can flip their tables fast enough to get as many clients in as possible. That along with any additional tips that they receive would possibly allow some of the most popular restaurants to remain open.

This surcharge however seems to come in lieu of any actual support to restaurants from the government and ultimately is still not enough to keep many in business.

The fate of many of our favorite restaurants is up in the air and unfortunately only time will tell whether they will be able to stay open or not. With the continuous evolving situation of the pandemic, I can only hope that the restaurant industry will be able to maintain some form of consistency in their business moving forward.

Works Cited

TELEVISION, CNBC. “N.Y.C. Restaurateur on the Impact of the Restart of Indoor Dining.” YOUTUBE, 30 Sept. 2020, www.youtube.com/watch?v=Qg3rTr3Y5XI.

Herzenberg, Michael, and Spectrum News Staff. “Restaurant and Bar Coronavirus Surcharge Takes Effect.” NYC Restaurant and Bar Coronavirus Surcharge Takes Effect, 16 Oct. 2020, www.ny1.com/nyc/all-boroughs/news/2020/10/16/nyc-restaurant-and-bar-coronavirus-surcharge-takes-effect.

 

 

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