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.