While some industries had it better than others, every single one has felt the effects of COVID-19 to a certain effect. The restaurant and hospitality industry has suffered a particularly hard blow because of the customer shortage caused by the lockdown across the United States.

The restaurant and hospitality industry was possibly hit the hardest. With 7.5 million jobs lost since the beginning of February, which is nearly 40% of all industry jobs. Unsurprisingly, the restaurant and hospitality industry has lost more workers than any other. Thats mainly because it lost the most customers as well. 

The layoffs were a tactical move by restaurant and hotel owners, meant to help them save money. However, this didnt seem to help their situation a lot, because, since the beginning of the pandemic, hotels around the United States have lost more than $46 billion. By the end of the year, the industry expected to gross 50% less than it did in 2019. 

Industry employees got it even worse. According to research, industry workers lose around $1.7 billion every week in payment and tips. Will the situation improve for the industry? Its hard to tell. Currently, 9 out of 10 restaurants are not operating at their full capacity and 65% of owners feel like the situation will remain the same for the next 3 to 12 months. 

There is still hope for the restaurant and hospitality industry. The travel industry, which was in the exact same spot just a couple of months ago has managed to bounce back successfully  Theres still a good chance that all of those layoffs will result in re-hires in 2021. 

Want to find out more about the restaurant and hospitality industry and how COVID-19 has affected it, take a peek at the infographic below, courtesy of kitchenall.com.

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  1. The hospitality sector has undergone massive losses in the last year as the pandemic imposed strict restrictions on all activities that are hospitality-related. Social distancing, periodic sanitization and caps on social gatherings is the new normal. Consequently, the hospitality sector faced a lot of challenges due to high fixed costs, capital-intensive operations, and adverse debt service terms. Near-zero revenue flow and the costs of relatively large service teams has fuelled further challenges.

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