Chapter II

REVIEW OF LITERATURE

This chapter provides the related studies and reading that are significant to

the study. The citation gathered served as background information for the

researcher’s study which is important to support and make the research possible.

Covid-19 Pandemic

The study of He and Lin (April 2020) shows the timeline of the

whereabouts of the globally-known COVID-19 and it is goes like this: First

SARS-Cov-2 related patient hospitalized in December 16, 2019 and followed by

the report of unknown etiology of this pneumonia-like disease on December 31,

2019. After that, Huanan Seafood Market shutdown on January 1, 2020 and the

virus is named 2019-nCoV on January 7, 2020. As the first recorded human-to-

human transmission, it is takes place on January 20, 2020 on Guangdong. In

between of January 23 and 26, the government implements some control measure

regards to that virus like banning of public transportations in Wuhan. World

Health Organization named the virus as COVID-19 on February 11, 2020.

Bolsen et. al. (2020) stated in their proposed research the possible origin

of the novel coronavirus (SARS-CoV-2) and it is framed into hypotheses which

are zoonotic or naturally comes from animals, human-engineered biological virus,

possible penalizing the China and an attempt to add more funds for biomedical

researches.
 In the study of Mahase (March 2020), WHO declares COVID-19 as

pandemic because of rapid transmission cases country-to-country, the negative

effects it bring to every country and global inaction that leads to a higher number

of confirmed positive cases.

Many independent full service restaurant operators decided of forced to

close their business because of lockdowns. Some of the reasons are the coping

capacity in terms of financial support to the employees during closure and the

businesses are predicted cannot survive to continue their operation if health

protocols being implemented until next year (Brizek et. al., 2020).

With the said pandemic, people preferences into restaurants also changed.

Private table or room became a most preferred service of the customers of the

restaurant industry (Kim & Lee, 2020).

Businesses strive to continue the operation amidst the pandemic. This

study will determine new and existing management plan for restaurants to cope up

and survive this crisis.

Restaurant Industry

Considered as one part of the hospitality industry, restaurant industry can

elaborate as high-class restaurants up to fast food chains. Every businesses that

can accommodate customers want to order, delivered and eat food on the

premises are considered among restaurant industry. The industry also employed

different types of employees, from managers to sanitation workers and head chefs

to back sink organizers (Weisen, November 2020).

 The classification of restaurants can be helpful for this study to select the

possible restaurants that can be a participant for data gathering procedures of the

study.

Issues and Challenges

As one of the most affected industry when the pandemic hits many

countries of the world, restaurant industry is severely affected due to worldwide

lockdowns and tight restrictions like social distancing that leads to worst

scenarios for the restaurant owners and employees.

The study of Kaushal and Srivastava (September 2020) determined major

challenges faced by hospitality and tourism industry and relate it for the possible

lesson will be learn that can benefit this industry. The qualitative results of the

study are break down into main challenges which are Human Resource

Management, Health and Hygiene and Continuity.

Human Resource Management

With the pandemic, restaurant establishments loss a huge amount of profit

that can make the operations stable. In this situation, manpower budget may suffer

a huge blow that can result to employee-contracts cutting due to lower budget.

Management fore see a “multi-skilled employee” trend in the industry to cut some

costs in human workforce. According to Rajendra (2016), multi-skilled workers

can help to avoid the cost-cutting of the business, reduce needed hiring, enhanced

individual efficiency and can contribute to career-growth of employees. In that

context, the management should allocated some time and budget for continuous

employees upgrading.

Health and Hygiene

National rules and regulations regards to health and sanitation must be

studied-well, it is because these set of guidelines is to be followed by the

countrymen. The restaurants must be responsible to manage their waste because it

can create a possible human-waste-human type of transmission of the disease. The

reviews of Brussow and Zuber (July 2020) stated the pose of threat by COVID-19

in the environment by the way of feces, sewage water and sludge. Restaurant

industry can contribute to those threats if the treating facility is absent to the

business.

Mandatory wearing of face mask can also contribute to lessen the

transmission. A usual crowded place like restaurants or food establishment can be

main contributor for virus infection that is why wearing PPE’s are essential. It

supports the study of Chi-Chung Cheng et. al. (July 2020) that the mass-wearing

of face mask can be a possible solution to control or lessen the virus transmission

from an individual with mild infection.

Continuity

As the pandemic-situation gets better and better, some restaurant operators

choose to regain the normal operation for their respective business. Various ways

are being done by businesses such as loans and tax rebates (Chikodzi et. al.,
September 2020) and providing a private table and room in restaurant premises

(Kim & Lee, 2020).

In contrast, low-income type of restaurant-like businesses such as small

eatery, food stalls, food hubs and resto-bar can be easily financially-crumbled by

the pandemic. Loss of customers due to lockdowns and limited source of funds

can be deciding factors to consider in closing their business. It supports the study

of Lee et. al. (2020) that the restaurants with higher financial funds and

internationally-recognized are more resistant to business closure amidst

pandemic-like crisis.

Waste Management

Bhattacharya et. al. (July 2020) stated that one of the biggest issue and

challenge is the waste management and disposal during COVID 19 Pandemic.

Biomedical waste, employees are required to use it and customers also using it

which makes it biological hazard. Some employees and customer may dispose

those wastes incorrectly can make it hazardous waste for sanitation worker.

Plastic wastes are expected to rise by volume because of the disposable plastics

usage, which is in-demand. In contrast, home solid waste is expected to decrease

because home owners preferably choose non-perishable foods. This study also

highlights the importance of proper waste management facilities in every locality.

As a home of million hospitality industry workers, pandemic really hits

hard the manpower sector. Managing the workforce became hard because of

contextualized problems of each employee and financial budget of the business.

Health and hygiene became a major concern because the industry is on “mass-

gathering” and “socializing” in nature. Stabilization of business can also be a

major problem because of the threat is imposed everywhere and the public-fear

created by the pandemic, it can cause a low number of customers that may lead to

smaller profit. Waste management is also vital because improper waste disposal

can contribute to virus spreading.

This present issues and challenges facing by the restaurants can help the

researchers to come up with the possible solutions and management plan needed

for the study.

Management Plan

Restaurant Management Plan is a written strategies or ideas in making the

future goals possible. It is a tool to make these concepts into action and actual

tests (Langley, 2019).

According to J. Moser of MBB Management, one of the beginners guide

for restaurant management is to hire staff that clearly understand the proposed

vision and mission of the establishment. In addition to that, Campbell (2017)

stated that the individuals in managerial positions can make the actual operation-

related tasks in order to be an effective member of the management plan. It

supports the study of Rajendra (2016) that the multi-skilled employee can make a

huge impact in the business positively.

In the article of Allen (2018) restaurant strategic management planning

needs to be equipped by those characteristics: A 3-year rolling plan, better

inquiries to achieved a better answers, collaboration with the stakeholders, never-

ending innovation and improved organizational communication.

Restaurant strengths and weaknesses are needed to properly tab in order to

maintain the competitive level of such establishments in a long run. SWOT

analysis can be done to address those foundations and termites of the business.

Addressing the strengths and weaknesses is the first step to be done, the

management needs to sit up and brainstorm on this factors. After determining

those strengths, the management must come up with the maintaining practices on

those variables and better if possible improvements are also planned. Then,

weaknesses are also taken into recognizing, the management must plan a main

and alternative solutions to solve those issues. An important factor about

determining those strengths and weaknesses is the management must be not bias

in addressing those weaknesses, the key factor is to accept the flaws and develop

solutions to flaunt it for the future. Next to be done is to know the restaurant

opportunities and threats. Opportunities are somewhat like strengths but more in

external factors, determine the possible variables that can increase the sales

revenue and use all of the available resources to maximize these advantages. Nest

is the possible threats, like upcoming or existing competitors. The management

must foresee the future establishments have to offer and came up ahead in

implementing it. Lastly, the management must perform a competitor SWOT

analysis. With that counter-procedure, the business will become a one-step ahead

all of the time (Andrews, 2019).

 In the article of Ready Training Online Incorporation (2019), it stated that

the management plan is a combination of planning the work and simply working

on the plan.

Lazration (September 2019) also stated some risk management checklist

for restaurant owners. It composed of:

Planning a safe work place, the employees are the backbone of the

business that is why restaurant owners need to develop a plan in making the

employee safe during work. In connection to pandemic, the owner might consider

the safety of every worker by providing an accurate PPE’s.

Planning a food poisoning and allergies quick responses, the restaurant

owners must allocate time and funds for proper training of the employees in the

way of handling food. Proper disseminating of information about the food in the

menu can also lessen the possibilities of allergies in the customers that may lead

to fatalities. Proper plan in this case can make the restaurant more customer-safe

and may lead to good reputation. In connection to pandemic, restaurants are now

equipped with some sort of chemicals for sanitizing and disinfecting, a good and

structured plan can prevent a serious problems.

Therefore, understanding the concepts and purpose of the management

plan can make a positive impact on how the restaurant owners implement possible

plans. Identifying individuals that can handle those situations is very vital in this

phase of management planning. Those concepts can help the researchers of the
study in determining the possible data gathering instruments and materials needed

to gather data regarding in basis for strategic management plan.

The list of related literatures and studies cited above were all linked to the

burden brought to the researchers in determine the issues and challenges in

selected restaurants during COVID-19 pandemic and formulate a basis for

strategic management plan.

Conceptual Framework

INPUTS PROCESS OUTPUT

 Demographic
Profile of the
Respondents ISSUES AND
 Issues and CHALLENGES IN
 Data Gathering
Challenges of SELECTED
the Selected  Data Analysis
RESTAURANTS
Restaurant and
DURING COVID-19
during COVID- Interpretation
PANDEMIC: BASIS
19 Pandemic  Statistical
FOR STRATEGIC
 Strategic Treatment
MANAGEMENT
Management PLAN
Plan may be
Developed to
Address
Identified Issues
and Challenges

Figure 1. Research Paradigm of the “Issues and Challenges in Selected

Restaurants during COVID-19 Pandemic: Basis for Strategic
Management Plan”
 The figure shows how the input-process-output (IPO) model was used as

conceptual framework. The responses of the respondents along the demographic

profile as well as issues and challenges of the restaurant during COVID-19

Pandemic and strategic management plan may be developed to address identified

issues and challenges as inputs. After obtaining or gathering information, these

data were encoded then applied with an appropriate statistical treatment or

formula and interpretation. The issues and challenges in selected restaurants

during COVID-19 Pandemic: Basis for strategic management plan as output.