To critically assess what financial challenges are faced by chain restaurants in the UK as a result of the Covid-19 pandemic
Abstract
The primary aim of this research was to undertake a critical investigation in understanding the
financial effects of the Covid-19 pandemic on chain restaurants in the hospitality industry.
Specific objectives were aimed at learning more about what the potential outcome will be for
restaurants as a result of the pandemic, public perceptions of how the hospitality industry has
been affected and individual motivations to engage in the hospitality industry. The research is
given some context with a thorough literature review covering the intrinsic factors effecting the
economy and chain restaurants. It also gives examples of previous financial crisis’ outcomes
in order to equate them to the current period of financial instability and predict potential
consequences.
A quantitative online survey was conducted with participants answering a number of closed
questions relating to the research issue. Thematic analysis was utilised to identify the key
themes and variances between answers. The results and discussion related to the research
objectives and to relevant literature to explain the findings.
There were some significant findings that came from the research. Hospitality was widely
agreed to be one of the worst affected sectors as a result of the pandemic. While Chain
restaurants are suffering financially, it has been acknowledged that by adapting and using
advancements in technology such as smart phone apps or having additional features such as
drive-thru or takeaway services; chain restaurants stand a much better chance of surviving.
The literature and primary research contradicted each other slightly surrounding consumer
behaviour in the pandemic. It is clear from the primary research that respondents were willing
to engage to in the hospitality industry as soon as restaurants reopen. No definitive conclusion
could be formed when determining the overall outcome for chain restaurants as a result of the
Covid-19 as findings are still ongoing.