Literature Review Assignment 1

Bus 308
section :01
Topic: Impact of covid-19 on the restaurants in Dhaka city
Group members:
Rizwana Yeasmin Faiza Id-173011055
Mahafuz Rahman ID: 173011064
Kazi Tanvir Mahtab KaushikID: 173011167
Afsana Maria Dristy ID:173011138
 International Journal of Medical Science in Clinical Research and Review “Impact of
COVID 19 on the Restaurants”

Research Question- in this research we see that the goal was to find out if the people avoid going
out at the restaurants or find out the number of people going out on covid are the same .and is it
affecting the restaurant. This survey can show us which variables are created obstacles in the
restaurant business as we can realize that restaurant business actually face difficulties and it creates
decrease their income as they earn before a pandemic or actually face loss. This research is
important as it will be helpful in getting to know how the restaurants got affected by this plague.
Respondent Profile-To analyzes the effects of coronavirus on restaurants, a questionnaire
comprised of nine questions is constructed. It is circulated on Facebook and WhatsApp in order to
make this research successful. As the situation is not favoured to getting responses by interacting
with people, it is easier to get responses through social media. This questionnaire sent to almost
654 persons and 310 individuals do responses.
Sample size-The questionnaire is not formed for any special nationality. The researcher sent the
questionnaire to almost 654 persons where 310 individuals do response. So the sample size is 310
as 310 participants or observations included in this study.
Sampling distribution- Here, the sampling distribution is the specific size of 654 which is taken
from a population.
Sampling technique- The sampling method used in this research was purposive

As the restaurant business face loss in this pandemic situation so it is the dependent variable. We
can find some independent variables that actually create this bad impact. Such as-

People want to protect themselves from coronavirus- we can notice by this research that almost
90% of people said that they are avoiding going out to restaurants in order to keep themselves
protected from this pandemic coronavirus. That means people become more conscious and they
try to save themselves and as a result the income of restaurant business falling down because of
lack of customer.

Restrictions on transportation affect going out of restaurants-As covid-19 spread ferociously

government create the restriction on transportation. For this reason, people face difficulties to go
from one place to another and it creates obstacles to go out to restaurants.
Lockdown-To protects the nation, the government has bound to enforce lockdown. And this
lockdown creates a decrease in income in the restaurants for lack of sales. because people cannot
go outside due to lockdown.

High-price-Because of covid-19, restaurants business become falling down. To recover their loss,
they increase their price range of food and that also affect the customers to increase the avoidance
of restaurant.
Poor-service-In this research 67.30% of people said that they are not getting the same service
quality as they get before this pandemic. And that also create customers dissatisfaction and
hampers the business.

Shortage of food-For this pandemic, people face a shortage of food that they needed in restaurants.
That means restaurant business cannot afford the necessary thing or manage their image because
of this pandemic.

Literature Review of “EXPERIENCES OF RESTAURANT BUSINESS IN THE COVID-

19: EVIDENCE FROM RAJSHAHI CITY, BANGLADESH”

Research question: is there any connection between Covid 19 and the income, number of orders
and the average loss in a restaurant business. In this research paper, we can see from the evidence
from Rajshahi city Covid-19 impacts in the restaurant business in Bangladesh.

Ongoing covid 19 has a bad impact on the workers around the country. Due to coronavirus, 95%
of the Restaurant business around the country was shut down. There are around 30000 small and
big restaurants around the country, and around 3000 restaurants are located in the Rajshahi district.
In this research, the respondent was fast food and Chinese restaurants, hotel and restaurants and
convention centers in the Rajshahi city that had a capital of 50,000-50,00,000. The overall
objective of the study was to find out the impacts of Covid-19 on the restaurant business.

According to the paper, there are approximately 70 restaurants in the metropolitan area. The
researcher used ‘Google form” to create questionnaires and performed an online survey. A total of
23 questions and seven utterances were used. The questionnaires were then shared through online
social networks like WhatsApp and Facebook, also in email. The sampling method used in this
research was purposive. And a total of 15 responses was taken and recorded.
Let's consider the income, the number of orders and the average loss as a dependent variable. The
independent variables will be the following:
Lockdown: in late march of 2020, the whole country was shut down and went on a lockdown. It
had a great impact on the industry. Because of the lockdown, there were no sales there for no profit
during that time.
Rent: the rents went up as the pandemic hit. Because of the lockdown, restaurants were shut down,
but they still had to pay the full amount. Many restaurant owners went into debt and suffered a
loss.
Hygiene concern: Because of the pandemic, people are more health-conscious. So they are
concerned more about how the food will be handled in the restaurant. So even after reopening, the
number of people coming to restaurants decreased.

Price hike: due to pandemic lockdown, the food imports from foreign country ware on hold .not
only that transportation of foods were also limited in the country, so the price of the raw materials
needed for to cook food increased because of that cost of producing a meal also increased. Because
of that, the profit margin decreased.

Closing of the educational institutions: from march 17, all the educational institutions are shut
down. Most of the restaurants are located near the institution, and the majority of the sales used to
come from the students.

At this research 3 hypothesis were presented

• There is a significant relationship between COVID-19 and the average income of the
Restaurant business
• There is a significant relationship between COVID-19 and the average income of the
Restaurant business
• There is a significant relationship between COVID-19 and the average income of the
Restaurant business

All three hypotheses were accepted after completing the research.

In conclusion, Covid 19 had an impact on the restaurant industry.

“Impact of the COVID-19 pandemic: Evidence from the U.S. restaurant industry”
literature review

Research question: This study examines how COVID-19 is affecting the restaurant industry in
the U.S. and causing a global economic crisis and causing financial imbalances and risks. How the
U.S restaurant industry is tackling the impact of COVID-19 on stock returns in the US restaurant
industry.
Responded profile: In order to determine how pre-pandemic characteristics of companies
moderate the effect of COVID-19 impact on stock returns in the US restaurant industry,
researchers conducted this study. The sampling period for this study is from January 3rd,2019 to
May 15, 2020.
Sample size: This analysis is collected from 795 firm-week observations as of 2019 and 797
observations for the 3-year average.
Sample distribution: They collected stock price data for restaurant companies from Yahoo
Finance (finance.yahoo.com). For the data of restaurant firms’ pre-pandemic characteristics, the
data is collected from annual reports (10-k) of 2017-2019 and other definitive proxy statements
(DEF 14A).

Sampling technique: In this study, they focused on the three firm-level dimensions which are;
• Financial Condition: When a firm's financial characteristics are revealed to the public
through annual reports and other earnings announcements, those characteristics function
as legitimate predictors to evaluate a firm's resilience to unforeseen external crises. Such
as COVID-19, investors in a stock market make and adjust their analyses relating to a firm's
market value. Financial flexibility acquired through enough cash holdings, reduced debt,
high past profitability, and a high dividend may serve as good signals that a company has
the ability to survive a market collapse. In the United States restaurant industry caused by
COVID-19, which has dramatically decreased revenue production.
• Corporate strategies: Restaurant industries' corporate strategies, like franchising and
internationalization, are critical considerations to consider in terms of operational risks
under COVID-19's external uncertainty. Since the COVID-19 shock is a worldwide threat,
a high level of foreign markets through internationalization may increase a firm's risk,
causing a market economy and stock returns to fail. The sustainability of restaurant
companies in the face of the COVID-19 shock is influenced by franchising and
internationalization. The current research seeks to determine whether the impact of
COVID-19 on stock return decline varies based on the types of each of the two corporate
strategies mentioned above.

• Ownership structure: Ownership structure must be calculated because managerial

opportunism is more likely to happen in complex and unpredictable external environments,
and ownership structure is a good predictor of a firm's monitoring ability. When analyzing
the stock return changes of restaurant firms following the COVID-19 shock, High
managerial and organizational ownership may act as significant factors for shareholders in
maintaining their shareholding during the COVID-19 crisis, which is defined by
unpredictable and complex managerial situations.

The dependent variable of this study is stock returns. The independent variables are; (a) DIV;
represents total dividends of common and preferred stocks; (b) ROA; represents a firm's past
accounting performance; (c) SIZE; reflects company size; (d) LEV; represents the debt-to-equity
ratio of each firm; (e) FR; the degree of franchising is represented, (f) INT; the degree of
internationalization is represented, (g) INST; institutional ownership is represented, and (h) MNG;
management ownership is represented.
 “Uncertainty risks and strategic reaction of restaurant firms amid COVID-19: Evidence
from China” literature review
The research topic is the impact of covid-19 on small restaurant business in Dhaka city. As we did
not find data for Dhaka city, we tried to check this survey of china to have an assumption about
Dhaka city’s situation. The world has previously experienced diverse disease outbreaks. However,
the COVID-19 (a respiratory illness) pandemic has resulted in distinctive implications for the
global public health and economy due to its unprecedented scale of impact on every aspect of
human life. This is a quantitative survey and they collected a total of 86,518 observations
(respondent profile) from 9 cities and then excluded 11 outliers detected with clustering analysis.
Finally, 86,507 (population size) observations were used for data analysis. To investigate the
effects of COVID-19 on restaurant performance, the dummy for COVID-19 and the different
restaurant attributes were regressed against monthly sales.I n this survey, the dependent variable
is the average monthly sales. And the independent variables are,
• Pandemic: because of the pandemic the whole sales was getting effected.
• Discount: Discount serves as a small monetary incentive to customers. Because of the
discount, the sale may go up.
• Delivery: As the whole city was in lockdown, the duration for the delivery was short so
this may have a positive impact on sale.
• Cate (the types of restaurant): This analysis includes restaurant category (CATE) and its
interaction with PANDEMIC (CATE*PANDEMIC) to investigate the impact of the
service types of restaurant operations on sales and the changes in the impact caused by the
COVID-19 outbreak
• Brand: Brand equity is the net benefits that brands pro-vide compared to non-brands.
The presented survey was developed to complete one main objective of this study. we regressed
PANDEMIC against SALES to investigate the financial impact of COVID-19 in the restaurant
industry. comparing all the variable and the survey the sales has gone up in the pandemic. Even
though this study made distinctive contributions to the body of literature, some limitations should
be specified and promising future research topics must be discussed. First, this study includes
extensive data solely from China. Although China is the first country that reported confirmed
COVID-19 cases and imposed city lockdowns and business shutdowns, other countries are needed
to explore macroscopic views on the COVID-19 impacts on the restaurant industry. This
consideration in future studies is expected to further discover global dynamics with different
restrictions under different geospatial characteristics. Second, COVID-19 is an ongoing global
pandemic. This study’s main focal point is on the business restrictions. Thus, the time window of
this study is considerably limited. Future studies with a longitudinal approach with further data
can explore the gradual resilience of multiple business segments and entire markets reflected by
time-variant factors. Hence, changes in confirmed cases, domestic socioeconomic status, and
industry-specific changes could deepen the understanding of the impact of COVID-19 and the
associated business restrictions. Lastly, data limitations should be dealt with in future studies. This
study focused on variables related to restaurant operation characteristics and brand equity aspects.
Even though this research determined the impacts of such variables under a given situation, these
variables remain limited. There could be numerous diverse risk-reducing factors based on
characteristics of diseases (e.g., Ebola virus, O-157, H1N1 pandemic in 2009, SARS), customers
(age, gender, experience, risk patterns), and restaurants (restaurateurs’ personality, main menus,
average price, size). It will be fruitful for future studies to include additional pandemic.

Literature review on “COVID-19 cripples’ global restaurant and hospitality industry.”

The restaurant and hospitality industry is a big part of the global economy. It contributes a lot to a
county’s economy. But also, this industry is susceptible to natural hazards. In this paper, we will
see if the global pandemic had an impact on the industry. In here, the recipient will be open table
and other online reservation platforms.

The restaurant and hospitality industry are susceptible to natural hazards like the covid19
pandemic. Because of social distancing, the restaurant industries were affected a lot. The
researcher made data from OpenTable, an online restaurant booking platform they had taken one
year worth of dining and take away data by day. They had taken only the countries with more than
50 restaurants on the platform. The restaurants sampled are from Australia, the USA, Canada,
Germany, Ireland, Mexico, and the United Kingdom. In this research, an Internet-based research
method had been used.

From the research, it can be seen that restaurants that are on the open table platform were severely
affected. Many of the restaurants have been closed permanently, and some will shut down soon.

If we take the negative impact as the dependent variable, the independent variables would be the
following:

Corona lockdown: in the USA, Canada, Australia Uk was under strict lockdown. Not even online
delivery was possible under the condition. The government wanted to reduce the curve, so the
lockdown was strictly enforced.

ban on dine-in restaurants: half of the USA maintains a ban on dine-in restaurants even after they
lower the lockdown. that caused the restaurant liquidity crisis

Social distancing: social distancing was heavily maintained because of the corona .sopeople prefer
to take online order to home rather than dine in a restaurant.

Government aid: there’s no/low government aid like provide stimulus and reliefs grants, tax breaks
and debt repayment breaks.

Allowing restaurants to offer takeaways or deliveries can reduce the impact of the covid on the
industry.
Bibliography.

Kashif, M., & Aziz-Ur-Rehman, M. K. J. (2020). Demystify the Covid-19 Effect on Restaurant. International
Journal of Medical Science in Clinical Research and Review, 3(03,), 281-289.

Kuddus, M. A., Rahman, N., & Sarkar, A. (2021). EXPERIENCES OF RESTAURANT BUSINESS IN THE
COVID-19: EVIDENCE FROM RAJSHAHI CITY, BANGLADESH. Bangladesh Journal of Multidisciplinary
Scientific Research, 3(1), 10-23.

Song, H. J., Yeon, J., & Lee, S. (2021). Impact of the COVID-19 pandemic: Evidence from the US
restaurant industry. International Journal of Hospitality Management, 92, 102702.

Kim, J., Kim, J., & Wang, Y. (2021). Uncertainty risks and strategic reaction of restaurant firms amid
COVID-19: Evidence from China. International Journal of Hospitality Management, 92, 102752.

Dube, K., Nhamo, G., & Chikodzi, D. (2020). COVID-19 cripples global restaurant and hospitality
industry. Current Issues in Tourism, 1-4.