Three more months under current conditions the limit for nearly half of restaurants

Three more months under current conditions the limit for nearly half of restaurants

New research released today by hospitality service provider Silver Chef and research group InKind reveals just 52 per cent of restaurant owners believe they can survive the next three months.

If current COVID-19 restrictions stay in place confidence for survival will deteriorate as time progresses.

Just 67 per cent of surveyed owners think their businesses can see out another month under the current COVID-19 conditions.

Faith fades as time goes on, with 60 per cent saying they can survive another two months from today, and only 52 per cent for another three months.

These concerning figures are complemented by the finding that the majority of restaurant owners (75 per cent) believe that it will be longer than six months before business returns to pre-COVID-19 levels.

According to Silver Chef's research Australian restaurants and other hospitality businesses chose to fight on during the worst of restrictions.

Just three in 10 businesses completely closed during COVID-19, with 63 per cent still operating as either pickup and/or delivery.

Hot food (56 per cent) and beverages (43 per cent) are the key products being offered via takeaway and delivery, but close to a third chose to provide produce/deli items and cook it yourself meals as an option.

More than a third of hospitality businesses have been operating with less than 10 per cent of their usual teams, with 70 per cent of businesses have accessing JobKeeper to remain in operation.

There is hope on the horizon though as Australian states begin to allow restaurants and other hospitality businesses to reopen under customer number limitations.

These limitations are likely to be eased as the COVID-19 situation gets better.

Interestingly, both the South Australian and Victorian Premiers have noted recently that allowing hospitality businesses to reopen with just ten patrons is unrealistic from a financial point of view for most restaurants, bars and cafes.

This change in the landscape has been reflected by Silver Chef's research, with 71 per cent of businesses believing that innovation will be critical moving forward, with the hospitality industry as a whole needing to become more creative to entice customers to spend.

40 per cent of surveyed owners actually believe that their business will become more resilient in the future because of how COVID-19 has forced them to implement diversified revenue streams (e-commerce and takeaway being two key new streams) that were put in place during lockdowns.

Updated at 12:08pm AEST on 22 May 2020.

Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support

Crypto staking: a new way to earn passive income
Partner Content
You may be familiar with traditional ways of earning passive income such as trading sto...
Etoro
Advertisement

Related Stories

Carsales.com founders sell Melbourne office development for $60.25m

Carsales.com founders sell Melbourne office development for $60.25m

A Singapore-listed property trust managed by Frasers Property (SGX:...

Woolworths adds controlling stake in MyDeal to cart for $218 million

Woolworths adds controlling stake in MyDeal to cart for $218 million

Woolworths (ASX: WOW) is looking to enhance its online marketplace ...

SNL’s Pete Davidson to star in QLD feature film ‘Wizards!’

SNL’s Pete Davidson to star in QLD feature film ‘Wizards!’

The Australian screen sector has bagged two major wins today, with ...

Bendigo-based Apiam Animal Health saddles up with $13.8m acquisitions

Bendigo-based Apiam Animal Health saddles up with $13.8m acquisitions

Vet services business Apiam Animal Health (ASX: AHX) has gone ...