The coronavirus pandemic and mass hysteria that has followed it will have a long-lasting negative impact on the food service industry, according to a recent study.
A survey from the National Restaurant Association (NRA) of over 4,000 restaurant owners has indicated that 11 percent of restaurant owners believe they will have to close up shop permanently with three percent saying they have already closed their doors for good. These calculations extrapolated across the entire industry mean that over 110,000 restaurants will be forced to close forever within a month.
In the first 22 days of March, restaurants lost an estimated $25 billion in sales and over three million jobs because of coronavirus-related economic peril. The consumption-based economy has evaporated immediately, and the ramifications could be dire.
Roger Lipton, a restaurant industry investor and commentator, is calling this the “restaurant apocalypse” and sees the business heading into uncharted territory where the damages could be unlike anything that has happened in the industry before.
“Any pundit who thinks that they’re going to use a recent history — and by recent history, I mean the last 100 years, including the Depression — as a template for what is going to go on here? They’re kidding themselves,” Lipton said to Business Insider on Monday.
Cowen analyst Andrew Charles is predicting that the pain is just getting started for the restaurant industry. Charles is forecasting “a steady, double-digit decline in same-store sales that began on March 16th and persists through the end of July.” Jordan Thaeler, founder of the foot traffic tracking company WhatsBusy, told Cowen that fine dining sales have dropped over 90 percent, casual dining has dropped 75 percent, and fast food has dropped by approximately 50 percent due to the coronavirus pandemic.
Lipton believes that the turmoil in the restaurant industry will likely last for years. He thinks that many franchises, many of which are already flush with debt, will ultimately go under after losing steady revenue streams from franchisees. Small mom-and-pop restaurants with no major cash reserves will also be squeezed tremendously during this crisis.
“The good news is people have to eat,” Lipton said. “Some companies are going to figure it out. And others, for one reason or another, won’t be able to.”
Big League Politics reported on the effects that the coronavirus pandemic has had on GDP yesterday, showing that the economic carnage is not just impacting the food service sector:
Americans across the country are feeling the pain regardless of what industry they are in. A study from Candor has indicated that 267 companies have instituted a hiring freeze due to coronavirus while 44 have laid off employees and 36 others have been forced to rescind offers because of the pandemic.
“The travel, hospitality, and transportation segment was particularly hard hit, with 95% of companies freezing hiring. Only two companies, Bolt and Cruise, report they are still hiring. All booking platforms — like Kayak, Expedia, and Booking.com — have suspended hiring. Uber and Lyft have a headcount freeze but continue to backfill already open positions. And 12 companies — like Bird, Expedia, Sonder, Mondee, and Knotel — have confirmed layoffs,” VentureBeat wrote in their analysis of the data.
They noted that the companies that are still hiring are doing so at a reduced pace because of the economic carnage caused by coronavirus.
“The good news: 111 companies are hiring. But 10% of those still hiring have implemented some kind of hiring freeze, laid off people, or had offers rescinded. That’s likely because hiring only continues for essential roles,” they wrote.
Forbes has published a run-down of all the companies that downsizing due to the economic calamity. They have compiled information from hundreds of employers showing the number of American workers displaced because of the pandemic.
Unemployment filings are at an all-time high, with 6.6 million beleaguered Americans filing for benefits last week.
The economy, which President Donald Trump once touted as the best in the history of the country, is at risk of falling into a serious recession or depression because of the coronavirus pandemic.
FLASHBACK: Before the COVID-19 Scamdemic, China and Wall Street Bankers Pined for ‘Cashless Society’
This is no conspiracy theory.
Throughout the COVID-19 pandemic, a peculiar war on cash has emerged, including news of a coin shortage that never quite made sense, which has some individuals thinking that the crisis is being exploited to usher in the “cashless society.”
The fake news media on cue has jumped into action to call anyone who expresses this notion a “conspiracy theorist.”
“Coins aren’t being circulated because businesses are closed and sales are down during the pandemic. And the government isn’t pushing the U.S. into a cashless society, either,” the Associated Press declared.
“We rate the claim that a “cashless” society would have zero cash, meaning money would be fully digital, fully traceable and fully controlled PARTLY FALSE as some of the claim was not supported by our research,” the USA Today wrote in their supposed fact check about the cashless society.
However, before the COVID-19 pandemic hit, Wall Street banking elites openly bragged about how they pined for a cashless society.
“We want a cashless society,” said Bank of America CEO Brian Moynihan last year at Fortune’s Brainstorm Finance conference, explaining that the financial system is “already digitized” and the cashless society is right around the corner.
“The business has moved digitally and it will continue to move that way. It’s just figuring out how to add the value,” he added.
JP Morgan also released a white paper celebrating how Europe is rapidly going cashless, calling the trend a natural progression from paper-based monetary units.
“PayPal and Apple’s publicly reported growth rates suggest that both could potentially be gaining consumer preference and merchant adoption. Digital Wallets directly address consumer security and help push toward a true cashless society,” said Brian Gaynor, Executive Director, Head of Product and Strategy Solutions at J.P. Morgan Merchant Services in Europe.
“For example, PayPal holds my card data centrally and keeps me from having to trust multiple e-commerce sites or apps with my full primary account number. Apple Pay does the same,” he added.
It should come as no surprise to anyone that the red menace is leading the way toward a cashless society. China has led the way on smart cities, social credit scores, weaponizing search engines to be tracking devices, and various devious technological innovations meant to crush the spirit of its citizenry.
China’s aggressive moves toward cashlessness are already causing problems for tourists and native citizens alike with society punishing those who resist the transition, as the Wall Street Journal has explained:
Travelers have had more luck on Alipay, which introduced a seven-step process last week that requires visitors to submit passport and visa information to Alipay, before loading money using an overseas card onto a prepaid card.
In a bathroom near the Great Wall recently, Catherine De Witte, a Belgian marketing consultant, was getting frustrated. She waved her hands in front of a high-tech toilet-paper dispenser, jammed her fingers into the slot and finally pounded on the machine. She wasn’t amused when she saw the QR code.
“You really need the restroom, and the restroom only gives you toilet paper if you can do something strange with your phone,” she fumed.
Once the cashless society is achieved, the ubiquitous tracking of every commercial transaction will become possible. The mark-of-the-beast microchips may not even be necessary at that point to achieve total centralized control. This is why China, globalist banking interests and the Washington D.C. swamp are pushing this notion, and the COVID-19 pandemic is the crisis they are using to accelerate this sinister agenda against economic freedom.
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