Restaurants, Cafes, Eateries, Pubs And Recreational Clubs – Potential Strategies And Focus Areas

At the time of writing this article, we have completed 5 weeks of curfew and lockdown in Sri Lanka due to the Covid-19 pandemic. The overall economy has been impacted due to this pandemic with small businesses being hit the most.

- Dr. Nirmal De Silva

Initial forecasts indicate that the global economy would contract by at least 3 percent this year. Analysts also predict that the economic recovery may take around 24 months for certain countries. Interestingly, most countries seem to be allocating between 5-10 percent of their GDP in order to fight off the pandemic and provide a much-needed stimulus to their economies.

Sri Lanka, unfortunately, is not in a position to allocate such amounts due to the limited fiscal space available at the moment. Kantar Sri Lanka, in their recent Consumer Sentiment Report (Covid-19: Barometer Sri Lanka) outlines that consumers are ready to downsize their lifestyles and the focus is apparently more on saving rather than splurging.

Around 54 percent of the respondents have claimed that they are now saving more in comparison to the pre-lockdown time period. Similarly based on the research data, Kantar is further of the opinion that ‘indulgences’ maybe under threat and preferences seem to be shifting towards local, traditional, and healthy food and beverages.

Across the globe, the restaurant industry, cafes, eateries, pubs, and recreational clubs are some of the most impacted businesses due to Covid-19.

Considering that the horrendous Easter Sunday terror attacks happened just a year ago, the current pandemic situation has come as a double blow to the Restaurant, Food and Beverage Industry in Sri Lanka. Irrespective of whether you are a ‘Casual Dining’, ‘Fine Dining’, ‘Home Baker’ or a ‘Take Away Food Service Provider’, no one has been spared by Covid-19.