Since its outbreak, the coronavirus is wreaking havoc in the global economy, hindering production, supply, and air transport across the world.
Channels of influence
There are several channels through which the coronavirus affects the global economy, namely:
Tourism and transportation
As for the local economy of countries, the virus affects through three channels:
Impeding economic activity, by preventing production, services, communications, transportation, tourism, and shopping, and by weakening supply and demand. Some cities were placed under curfew and turned into ghost cities as we have seen in China and Italy, and the number is increasing around the world.
The costs of response and containment. From saving, supporting and precautionary measures to the health sector and the economic and social sectors, at exorbitant and rising prices.
Confidence and certainty. Confusion and uncertainty weaken faith, and this leads to reluctance to invest, spend, and tourism.
Corona – the hardest hit is the restaurant sector.
Many restaurant owners have admitted that the financial possibilities available to them are not enough for several weeks ending in April 2020, after which business owners will be forced to lay off workers and close restaurants, with no hope of reopening soon. In an attempt to save a desperate situation, the European Commission decided to allocate 25 billion euros to address the negative repercussions of the crisis.
The British government has allocated support in its new budget for this year to the sectors affected by some of the business tax exemptions and the ease of obtaining assistance in cases of illness. The government has removed caveats over food delivery times for supermarkets, to deal with bottlenecks in bulk purchases from citizens who have been frightened by the idea of homelessness. The proportion of those who store foods unnecessarily is one-third of consumers in Britain. The British food industry is operating under new rules to keep food supplied to supermarkets clean and to isolate infected workers immediately.
The Coronavirus crisis can only be felt deeply after field trips in the streets of European cities. In countries such as Italy, Spain, and France, shops, including restaurants, are closed by law, which generalizes the complete closure of everyone except for a few exceptions to pharmacies and supermarkets. But even in cities where isolation has not yet been applied, empty restaurants are spread in all neighbourhoods, after large popular sectors resorted to imposing self-isolation and not leaving the homes. A few weeks ago, abandoned restaurants in London were Chinese restaurants in the Soho neighbourhood, but the migration of London restaurants spread to all other restaurants regardless of nationality.
The picture is repeated in many American cities, where more than 80% of California schools are closed. The state advised the elderly (starting at 65) to stay in homes and not mix. Although restaurants continue to operate in California, only half the number of regular customers is permitted until there are safe spaces between customers. Boston closed all restaurants and cafes. But the most demanding measures were from Puerto Rico, where a curfew was imposed from nine in the evening until five in the morning with the closure of all non-vital commercial outlets, including restaurants. And it happened again in Washington state, which decided to close restaurants except in cases of home delivery. In Ohio, the country has decided to close restaurants since mid-March but allows food to be ordered for home delivery.
How can we help you?
We are helping restaurants scrambling to reinvent themselves in the wake of coronavirus. The restaurants can start their takeaway and home delivery services with Y the Wait business app. Please visit our registration page for signing up within a few minutes with our 24×7 support.