The impact of the epidemic on the catering industry

The impact of the epidemic on the catering industry:

1. Industry shutdown

Closing businesses and closing stores, the catering industry faces a crisis at the beginning of the year. The catering companies and individuals interviewed closed all stores during the epidemic.

2. Impaired momentum

Reservation orders, passenger traffic, and offline and online revenue experienced a "quadruple decline". Spring Festival orders suffered a "Waterloo", and the annual performance blowout point "misfired" ".

As one of the largest entities in the offline economy during the Spring Festival, the catering industry collectively encountered "Waterloo" after the epidemic. Among the companies (individuals) surveyed in this survey, almost 100 reservation orders were completed. The amount is zero.

Secondly, the combination of low business, insufficient people, and high requirements has resulted in a downturn in the takeaway business. On the one hand, due to the reduction in order volume during the epidemic, the company's self-delivery costs are too high.

On the other hand, it is mainly due to the insufficient number of on-the-job takeaway workers. In addition, the safety and epidemic prevention level of third-party delivery personnel, containers, and vehicles, as well as the actual effect of various contactless delivery, also affect the takeout business volume. growth. Orders, customer flow, and takeout volume have plummeted, and the revenue of the companies surveyed has dropped by more than 80% since the epidemic.

3. Profits plummeted

Since the epidemic caused serious industry losses, the net profits of catering companies have dropped significantly, and the net profits of the interviewed companies have been cut in half. The epidemic has a continuing impact on business operations.

4. Sustained cost pressure

In the face of the epidemic, on the one hand, the vast majority of the catering industry has been forced to close operations, on the other hand, it still needs to pay rent and labor costs, and it also faces fixed costs. Asset depreciation and other issues.

Based on relevant market research data and financial data of listed catering companies, the sum of raw materials, labor and rent accounts for about 70% of the total cost.

Secondly, the cost of purchasing epidemic prevention and control materials has increased significantly. Affected by the epidemic, in order to meet the safety requirements for epidemic prevention and control, the catering industry will purchase additional masks, disinfectant water, temperature measurement equipment, etc., increasing the expenditure of catering enterprises.

5. Difficulty in survival

The supply of liquidity is insufficient and the supply chain has many obstacles. Liquidity support is weak, and the catering industry has limited cash reserves. Daily operations rely on the rolling flow of single stores and are extremely dependent on working capital.

Catering companies are all small enterprises. Under the current revenue and capital turnover situation, most companies have insufficient liquidity support. Price fluctuations, reduced procurement channels, reduced logistics, transportation and front-end production capabilities have increased instability in the supply chain of the catering industry.

Affected by the epidemic, the catering supply chain has been greatly affected, mainly reflected in price fluctuations, procurement channels, logistics and distribution efficiency, etc. Enterprises are facing greater difficulties in supply chain maintenance.