COVID-19 is incredibly damaging, and the human victims can never be ignored. There will be business casualties as well. Lots of them. And many will be restaurants as noted in my previous post (COVID-19 & The Scavengers).
Sadly, or not, this will provide opportunities for some aspiring entrepreneurs that were not sure about entering the foodservice industry or were not financially ready.
Stats don’t lie
If the stats report, and they change daily, that 110,000 restaurants in the USA and 10,000 restaurants in Canada will not reopen is even close to being accurate, then there will be a glut of empty eateries. This will lead to bankruptcy trustees selling the assets for cents on the dollar and some attractive leasing rates from landlords.
People that were on the fence considering starting a restaurant will find it much easier to convince themselves and their investors that their venture is viable. It provides a financial jump-start.
Restaurants that are able to survive and were considering expanding to another location before COVID-19 will be much more willing to take the plunge now. Even with a new concept.
The number of restaurants has shrunk and when the economy rebounds, and it will, the foodservice market will need to fill the void of feeding people at their establishment along with offering home delivery.
Is now the time?
Timing is everything and the opportunity to start a new restaurant may never be so financially attractive.
It feels like vultures feeding on the carcasses of business failures. I know because it happened to me. As crass as that sounds, it’s fitting.