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Financial recovery strategies for restaurants during COVID-19: Evidence from the US restaurant industry
Journal of Hospitality and Tourism Management ( IF 7.6 ) Pub Date : 2021-04-29 , DOI: 10.1016/j.jhtm.2021.04.012
Elizabeth Yost , Murat Kizildag , Jorge Ridderstaat

A research problem is presented from the inherent devastating effects of the COVID-19 pandemic on the restaurant industry: restaurants are now faced with mounting expenses and limited revenue due to mandatory closures of dining rooms. As an example of the problem for the industry, Darden Restaurants (NYSE: DRI) – the torchbearer of the U.S. foodservice industry – closed its 1800 restaurant dining rooms nationwide causing 60.0% decrease in same-store sales, due to the worldwidecollapse in consumer demand and spending, economic shut-down, restricted movement, and reduced intensity of food traffic, etc. Against the backdrop of crisis and recovery management, the purpose of this research note is to manage the negative impact of COVID-19 by identifying recovery strategies and relief efforts for the restaurant industry using Darden Restaurants as a case study. Data obtained from Darden executives revealed that revenue generation focused on carry out and an investment in people through adequate benefits are top strategies for financial recovery. Additionally, cost recovery methods such as preserving cash by delaying capital expenditures and reducing marketing spend are key survival techniques. The note uncovered these critical strategies to revamp the profit margins while leveragingeach brand's exclusive characteristics in order to remain financially competitive during and in the aftermath of COVID-19.



中文翻译:

COVID-19期间饭店的财务复苏策略:来自美国饭店业的证据

COVID-19大流行对饭店业的内在破坏性影响提出了一个研究问题:由于餐厅的强制关闭,饭店现在面临越来越高的费用和有限的收入。作为该行业问题的一个例子,美国餐饮服务业的火炬手达顿餐厅(D​​arden Restaurants)(纽约证券交易所代码:DRI)关闭了其在全国的1800家餐厅,由于全球消费者需求崩溃,同店销售额下降了60.0%。和支出,经济停滞,行动受限,粮食运输强度降低等。在危机和恢复管理的背景下,本研究报告的目的是通过使用Darden Restaurants作为案例研究,确定餐饮业的恢复策略和救济工作,以管理COVID-19的负面影响。从达顿公司高管那里获得的数据表明,创收侧重于实现,通过适当的利益对人进行投资是财务复苏的首要策略。此外,成本回收方法(例如通过延迟资本支出和减少营销支出来保留现金)是关键的生存技术。该说明揭示了这些关键战略,这些战略在提高利润率的同时利用了每个品牌的独有特征,以在COVID-19期间及之后保持财务竞争力。从达顿公司高管那里获得的数据表明,创收侧重于实现,通过适当利益对人进行投资是财务复苏的首要策略。此外,成本回收方法(例如通过延迟资本支出和减少营销支出来保留现金)是关键的生存技术。该说明揭示了这些关键战略,这些战略在提高利润率的同时利用了每个品牌的独有特征,以在COVID-19期间及之后保持财务竞争力。从达顿公司高管那里获得的数据表明,创收侧重于实现,通过适当的利益对人进行投资是财务复苏的首要策略。此外,成本回收方法(例如通过延迟资本支出和减少营销支出来保留现金)是关键的生存技术。该说明揭示了这些关键战略,这些战略在提高利润率的同时利用了每个品牌的独有特征,以在COVID-19期间及之后保持财务竞争力。

更新日期:2021-04-29
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