Abstract

This study sought to establish the effect of COVID-19 on the performance of restaurants in Cameroon. This study was carried out uslng financial statements of a selecte‹l restaurants in Cameroon. A sample of 50 workers were gotten from various restaurants 1n Cameroon. The sampling technique used was the stratified random sampling.

Descriptive and inferential statistic llke the mean, standard deviation, skewness, correlation matrix, with a linear regression analysis to draw the conclusion of the study were applied. The performance of a restaurant is captured using ROA.

The results show that COVID-19 has a significant positive effect on the performance of restaurants in Cameroon. The study also revealed that COVID-19 brought aspects of more sanitation and more closeness into delivery services.

As recommended, restaurants are should have clear and effective policies and procedures in handling their services so that after the COVID 19 they may not be so much hit by any other pandemic and must be regularly reviewed.

CHAPTER ONE

INTRODUCTION

1.1 Background of the Study

Over the last ten years, the Portuguese restaurant industry has experienced enormous growth, associated with the growth of tourism in Portugal, especially in the Algarve coastal regions, Lisbon, and Porto. Further, Portuguese wines, Portuguese cuisine, and Portuguese chefs have become internationally renowned, which has resulted in an increase in the number of wine tourists and gastro tourists. According to Bank of Portugal (Bank of Portugal, 2019) data, in 2018 the share of the accommodation, catering, and similar sectors represented 10% of companies in Portugal, 9% of people in service, and 3o/ of turnover.

The restaurant business sector plays an essential role in the economy of a country even though many small and medium-sized restaurants fail during their first four years of activity, which is an example of the need for strategies  to financially sustain their business beyond five years  (Gnonlonfoun,  R  2017).  Other authors have also pointed out the importance of a survival strategy for the restaurant sector and for re-establishing consumer confidence.

Economic sustainability is the additional income provided to local inhabitants to compensate them for the presence of tourists  and what that can result in. It can also  be defined as the improvements to the local economy that the  development  of tourism can produce in the long term, taking into account all the impacts that affect the different sectors and the economy of local industries.

Nunez-Rios, Sanchez-Garcia, Rojas, and OlivaresBenitez [2020] also evince that organizational sustainability and sustainable performance continue  to  be  a challenge for small and medium-sized companies because their resources and organizational structure are very limiting. Unsustainable economic growth generated by a strong fiscal stimulus or a combination of tax reductions and  increases ln expenditure can lead to catastrophic and long-lasting effects on macroeconomic stability in some countries.

The recent health crisis caused by COVID-19 quickly turned into a financial downturn due to the restrictions imposed by most countries to control the expansion of this pandemic. This unexpected crisis has particularly affected the tourism industry, and as a result, the restaurant business has been one of the most affected in Cameroon.

Restaurants were forced to either close or operate with many limitations, and in Cameroon, only takeaway and delivery services were allowed. Although restaurateurs have experienced and survived many crises in recent decades, thls new pandemic has devastating effects on the world economy, never before experienced in modern times.

For the first time in history, the world is facing a crisis that has suspended the future of all types of restaurants, with an extraordinarily important weight on the world economy and especially on destinations with a greater tourist and gastronomic vocation, as well as the thousands of people who work in and depend on this industry to survive.

1.2. Problem Statement

The National Restaurant Association’s 2021 State of the Restaurant Industry report addresses the devastating impact of COVID-19 on the restaurant industry, documents the altered operational landscape, and captures consumer sentiment, influences and intentions for the coming months.

It also explores several crucial areas in which the pandemic forced restaurateurs to pivot and adapt, quickly adopting contactless technology, shifting most services to off-premises and outdoor dining, and adjusting labour levels and menus.

Based on data from responses to the Association’s survey of 6,000 restaurant operators across all industry segments, and a survey of 1,000 adult consumers, the  report delivers impact data on sales and traffic, operational trends, food and menu trends, and workforce trends along with consumer purchase preferences and intentions.

As of March 18, 2020, Cameroon was in a  total  and  complete  lockdown. Respecting the measures put in place to fight the pandemic. Restaurants looked at a number of different ways to retain traffic and generate revenues. Operators  focused on building off-premises buslness, especially in the fullservice  segment,  with  roughly half of restaurateurs devoting more resources  to  expanding  that  side  of their business since the start of the COVID-19 outbreak in March.

Adding curbside piclc-up, irthouse and 3rd party delivery and if possible, drive-thru capacity, and upgrading takeout and dellvery packaging were just a few of means they used to sustain business. Service styles also changed. In addition to the off- premises focus, a big portion of on-premises dining moved outdoors for as long as the weather permitted. Tech adoption accelerated. Contactless and mobile payment options became crucial. Across all 6 segments—quickservice, fast casual, casual, family, fine dining, and coffee and snack, some 40% of operators said they added tech solutions to their businesses.

Economists, professional managers, and restaurant associations  warn that, depending on the duration of the  pandemic  until  the re-establishment of normality, in the best-case scenarlo, thousands of people will lose thelr jobs due to cost reductlons and that, in the worst-case scenario, thousands  of  spaces,  whether recently opened or older, permanently cease activity. Thus,  analysis  of the impacts on thls sector is essential in order to strengthen  financial  resilience  and  sustalnability during and after this crisis is very  relevant.

Thus,  the  objectives  of this research are to understand how entrepreneurs see the post-pandemic period, to ascertain which governmental measures they would like to see implemented, to understand which strategies they plan to adopt, and to understand what lessons these entrepreneurs are learning for the future while living through the pandemic period.

1.3. Research Questions

1.3.1 Main Question

The main research question of this study is to what extent does COVID-19 affect restaurant performance in Cameroon?

1.3.2 Specific Research Questions

Specific research questions are:

1. What are the main concerns that restaurant entrepreneurs have for the post-pandemic period?
2. What governmental measures do restaurant entrepreneurs aim to see implanted?
3. What strategies do restaurant entrepreneurs want to adopt?
4. What are the main lessons for restaurant entrepreneurs?

Read More: Accounting Project Topics with Materials