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.
President Trump Promises to Protect Healthcare from Illegal Immigration
The President Reiterates His Strong America First Immigration Vision
Before an audience in Des Moines, Iowa on October 14, 2020, President Donald Trump highlighted his support for curbing illegal immigration.
In this speech, Trump made it a point to link illegal immigration with increased spending on healthcare at the federal and state level.
“[Joe] Biden’s agenda would be a catastrophe for Iowa seniors,” Trump stated in his speech.
Biden is pledging mass amnesty and federal health care for illegal aliens, decimating Medicare and destroying your Social Security.
We all have a heart. I said all the time, I’d love to take care of everybody all over the world. The problem is our country can’t afford it.
If you started saying, ‘We’re going to give free education, we’re going to give you Medicare, we’re going to give you health care, we’re going to give you everything,’ our country will be flooded with millions and millions of people that are going to come from all over the world. They will decimate our country,. You can’t do it.
Biden cares more about illegal aliens than he does your senior citizens. It’s true.
In these trying times, Trump has to use his national populist appeal in order to win votes, especially among older voters. Trump has lost his edge with that demographic cohort according to an Axios report that was released in October 6:
Former Vice President Joe Biden has gained a more than 20 point lead over President Trump among voters ages 65 and older, two separate polls — one from CNN and one from NBC News and the Wall Street Journal — found.
Illegal aliens are known to be major beneficiaries of welfare largesse. According to a 2016 study by the National Academies of Science, Engineering and Medicine, mass migration runs state and local governments about $60 billion annually. Additionally, if the current crop of uninsured illegal aliens is allowed to enroll in the Obamacare program, the federal government could potentially be spending $10 billion annually, an estimate that the Center for Immigration Studies put forward back in 2019.
Bringing in more migrants would have healthcare and infrastructure costs balloon to rates that could strain America’s already delicate social services programs.
Neil Munro of Breitbart compared and contrasted Biden and Trump’s immigration platforms to detail the contrasts between the two canddiates respect visions for migration policy:
But Biden’s 2020 plan promises to let companies import more college-trained visa workers, to let mayors import visa workers, to accelerate the multi-million inflow of chain-migration migrants, to end migration enforcement against illegal aliens unless they commit a felony, and to dramatically accelerate the inflow of poor refugees to at least 125,000 per year.
In short, Donald Trump is the America First candidate who stands up for American workers and socio-economic cohesion. In contrast, Biden is the globalist candidate that wants to break down American institutions for the benefit of Big Business and other interests who view the nation state as an antiquated construct.
In 2020, the choice is clear for anyone who believes in institutional stability and prosperity for the American people and their posterity.
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