Lebanese University

Faculty of Economic sciences

And Business Administration
Branch: First

The Impact of COVID-19 Pandemic Crisis on

Firms’ Life Cycle

A Thesis Prepared in the Fulfillment of the Requirement for

the Master’s Professional Degree in Business Administration
Major: Business Management

Prepared by:
Rawan Deeb

Committee members:
Supervisor: Dr. Said Hussein
Reader: Dr. Hassan Saleh
Reviewer: Dr. Abbas Hmedeh

Academic Year
2019-2020
 Abstract

The public health crisis prompted by COVID-19 has already impacted the companies’
business operations, revenues and even customers. The impact of COVID-19 could have a
severe impact on profits, distract and demoralize workforce, and radically change the delivery
of goods and services. These short-term consequences are likely to have long-term
implications if no meaningful risk reduction measures have been taken. Therefore, managers
have to anticipate crisis and be prepared to inevitable threats.

This research has a fundamental aim which is to determine the impact of COVID-19
pandemic crisis on firms’ life cycle, and the way businesses respond to the crisis and deal
with it, in addition to the importance of crisis management, before and during the crisis in
order to face and adopt with the crisis effectively with minimum risks. This research
represents the association which is existing between impact of COVID-19 crisis on
restaurants and the extent to which crisis management and the responses can minimize risks
and rescue restaurants from losses in all aspects. The data of this study was gathered as a
sample size by sending an online survey to a total of 64 restaurant managers, accountants and
department heads, and was analyzed using the SPSS statistical software. The results detected
that crisis management (pre-crisis management, during-crisis management) has positive
significant impact on rescuing restaurants from large risks and guarantee restaurants survival.
Moreover, this study revealed the responses considered as best practices that restaurants can
take in the current situation during COVID-19 crisis. Finally, this study explains the adverse
impacts of COVID-19 pandemic crisis and the vulnerable positions that restaurants are put in,
which sheds light on the importance of crisis management in such cases and the best practices
should be done in order to survive. Furthermore, it is suggested for future researches, to
conduct what post-crisis management will be after COVID-19 will demise.

Keywords: Impact of COVID-19, Crisis management, Responses, Best practices,

Restaurants Survival.

ii
 ‫ال‪+‬م‪+‬ل‪+‬خ‪+‬ص‪+‬‬

‫أثرت أزمة الصحة العامة الناجمة عن فيروس كورونا بالفعل على العملي;;ات التجاري;;ة للش;;ركات وعائ;;داتها أيض;ا ً الزب;ائن‪.‬‬
‫يمكن أن يكون لتأثير فيروس كورونا تأثير شديد على األرب;;اح‪ ،‬ويش;;تت انتب;;اه الق;;وى العامل;;ة ويض;;عف معنوياته;;ا‪ ،‬ويغ;;ير‬
‫بشكل جذري تسليم السلع والخدمات‪ .‬من المحتمل أن يكون لهذه العواقب القصيرة المدى آثار طويلة الم;;دى إذا لم يتم اتخ;;اذ‬
‫تدابير فعالة للحد من المخاطر‪ .‬لذلك‪ ،‬يتعين على المديرين توقع األزمة واالستعداد للتهديدات التي ال مفر منها‪ ..‬ه;;ذا البحث‬
‫إن الهدف األساسي له;ذه ال ّدراس;ة ه;و تحدي;د ت;أثير أزم;ة جائح;ة ف;يروس كورون;ا على دورة حي;اة الش;ركات‪ ،‬وطريق;ة‬
‫له ّ‬
‫استجابة الشركات لألزمة والتّعامل معها‪ ،‬باإلضافة إلى أهمية إدارة األزمات‪ ،‬قبل وأثناء األزمة‪ .‬من أج;;ل مواجه;;ة وتبنّيه;;ا‬
‫بفعالية وبأدنى حد من المخاطر‪ .‬يمثل هذا البحث العالقة الموج;;ودة بين ت;;أثير أزم;;ة ف;;يروس كورون;;ا على المط;;اعم وم;;دى‬
‫إدارة األزمات واالستجابات التي يمكن أن تقلل المخاطر وإنقاذ المط;;اعم من الخس;;ائر في جمي;;ع الج;;وانب‪ .‬تم جم;;ع بيان;;ات‬
‫هذه الدراسة كحجم عينة عن طريق إرسال استطالع عبر اإلنترنت إلى ما مجموع;;ه ‪ 64‬من م;;ديري المط;;اعم والمحاس;;بين‬
‫ورؤساء األقسام‪ ،‬وتم تحليلها باستخدام البرنامج اإلحصائي‪ .‬كشفت النتائج أن إدارة األزمات (إدارة ما قب;;ل األزم;;ة‪ ،‬وإدارة‬
‫األزمات) لها تأثير إيجابي كبير على إنقاذ المطاعم من المخاطر الكب;يرة وض;مان بق;اء المط;اعم‪ .‬عالوة على ذل;ك‪ ،‬كش;فت‬
‫هذه الدراسة عن الردود التي تعتبر أفضل الممارس;ات ال;تي يمكن أن تتخ;ذها المط;اعم في الوض;ع الح;الي أثن;اء األزم;ات‪.‬‬
‫أخي ًر ا‪ ،‬توضح هذه الدراسة اآلثار السلبية ألزمة جائحة فيروس كورونا والمواقف الضعيفة التي توضع فيها المط;;اعم‪ ،‬مم;;ا‬
‫يسلط الضوء على أهمية إدارة األزمات في مثل هذه الحاالت‪ ،‬وينبغي اتباع أفضل الممارسات من أج;;ل البق;;اء‪ .‬عالوة على‬
‫ذلك‪ ،‬يُقترح لألبحاث المستقبلية‪ ،‬إجراء إدارة ما بعد األزمة بعد زوال فيروس كورونا‪.‬‬

‫الكلمات المفتاحيّة‪ :‬تأثير فيروس كورونا‪ ،‬إدارة األزمات‪ ،‬الردود‪ ،‬أفضل الممارسات‪ ،‬بقاء المطاعم‬

‫‪iii‬‬
 Dedication

My deepest appreciation is dedicated to my best and smartest friend, Hussein,

who is also a Master’s student. Thank you for inspiring me when things were

hard, to believe in me and to stand by my side whenever I needed to. I would

not be able to do this on my own without your care, support and

encouragement. I owe you; it meant a lot to me.

iv
 Acknowledgement

First of all, I would like to thank and appreciate the committee's efforts,

support, motivation and commitment that helped a lot and were the reason why

my thesis was accomplished. For their guidance, handiness, professionalism,

and responsiveness, my supervisor, Dr. Said Hussein, my reader, Dr. Hassan

Saleh, and my reviewer, Dr. Abbas Hemadeh.

I am fortunate to have the opportunity to learn from the most professional

doctors. It’s my honor to present and discuss my thesis with you.

I am warmly thankful to my family who stood by me in the preparation of this

thesis. Finally, I sincerely express gratitude and appreciation to the Faculty for

spending 6 years of my life studying and acquiring knowledge, friends, and

forming a professional personality.

v
 Table of Content

Abstract..........................................................................................................................................
‫الملخص‬........................................................................................................................................iii
Dedication.................................................................................................................................iv
Acknowledgement......................................................................................................................v
List of Tables..........................................................................................................................viii
Abbreviation List.......................................................................................................................x
Chapter One.............................................................................................................................1
General Frame of the Thesis...................................................................................................1
1.1. Introduction:.........................................................................................................................
1.2. Research Problem:................................................................................................................
1.3. Research significance...........................................................................................................
1.4. Justification of the Study......................................................................................................
1.5. Objective of the Study..........................................................................................................
1.6. Research questions................................................................................................................
1.7. Hypotheses............................................................................................................................
1.8. Key methodology..................................................................................................................
1.9. Contents of the study............................................................................................................
Chapter Two.............................................................................................................................7
Literature Review.....................................................................................................................7
2.1. COVID-19............................................................................................................................
2.2. Organization Life Cycle (OLC)............................................................................................
2.3. Life cycle of Restaurants Industry......................................................................................
2.4. Restaurants industry in Lebanon........................................................................................
2.5. Crisis...................................................................................................................................
2.6. Crisis Management.............................................................................................................
2.6.1. Pre-Crisis Planning.............................................................................................15
2.6.2. When a Crisis Arises..........................................................................................16
2.6.3. Post-crisis behaviors...........................................................................................16
2.7. Previous Relevant Studies..................................................................................................
Chapter three..........................................................................................................................24
Research Methodology...........................................................................................................24
3.1. Introduction.........................................................................................................................
3.2. Research Methodology.......................................................................................................
3.3. Research Design.................................................................................................................

vi
3.4. Research Strategy...............................................................................................................
3.5. Sources of Data...................................................................................................................
3.5.1. Primary Sources.................................................................................................26
3.5.2. Secondary Sources.............................................................................................26
3.6. Quantitative Study..............................................................................................................
3.7. Questionnaires....................................................................................................................
3.8. Population and Sample of the study...................................................................................
3.9. Sampling Techniques..........................................................................................................
3.10. Data Collection Instruments...............................................................................................
3.11. Data Analysis......................................................................................................................
3.12. Testing Reliability and Validity Tests................................................................................
3.12.1. Testing the Reliability........................................................................................28
3.12.2. Testing the validity.............................................................................................29
CHAPTER Four.....................................................................................................................31
Data Analysis..........................................................................................................................31
4.1 Descriptive Analysis................................................................................................................
4.1.1 Characteristics of Restaurants Underwent the Survey.............................................31
4.1.2 Attitudes of Respondents Toward Lockdown, Social Distancing and Travelling
Restrictions.......................................................................................................................31
4.2 Testing Hypothesis..................................................................................................................
CHAPTER FIVE....................................................................................................................56
Finding and Discussion..........................................................................................................56
5.1. Summary of the Results......................................................................................................
5.2. Interpretation relevant to the literature review...................................................................
5.3. Conclusion..........................................................................................................................
5.4. Recommendations...............................................................................................................
5.5. Study Limitations................................................................................................................
5.6. Suggestions for future research..........................................................................................
References...............................................................................................................................61
Appendices..............................................................................................................................64
Appendix A: Questionnaire...........................................................................................................
Appendix B: Chronbach Test........................................................................................................

vii
 List of Tables
Table 1. Reliability Statistics...................................................................................................35
Table 2. Chronbach test if Item-Total Statistics.......................................................................35
Table 3. KMO and Bartlett's Test............................................................................................37
Table 4 . Attitude of the respondents toward Lockdown, Social distancing and travelling
restrictions (%).........................................................................................................................39
Table 5. The extent of engaging respondents with crisis management (pre and during crisis)
(%)............................................................................................................................................41
Table 6. Responses of restaurants against Covid-19 crisis (%)...............................................44
Table 7. Restaurants survival...................................................................................................45
Table 8. The Correlation Coefficients among Lockdown and Restaurants Survival...............46
Table 9. Overall Correlations between Lock down and restaurants Survival..........................48
Table 10. The Correlation Coefficients among Social Distance and Restaurants Survival.....49
Table 11. overall correlation coefficient of Social Distance on Restaurants Survival............51
Table 12. The Correlation Coefficient among Travelling Restriction on Restaurants Survival
..................................................................................................................................................52
Table 13. The Correlation Coefficient among Travelling Restriction on Restaurants Survival
..................................................................................................................................................53
Table 14. The Correlation Coefficients among Pre-crisis management and Restaurants
Survival....................................................................................................................................55
Table 15. Correlation Coefficients of During-crisis management & Restaurant Survival......56
Table 16. The Regression Analysis for the Impact of Covid-19 and Crisis Management on
Restaurants Survival.................................................................................................................58
Table 17. Number of cases in each cluster...............................................................................59
Table 18. Overall significance (Restaurants Survival)............................................................59
Table 19. Descriptive of cluster a, b, c (Restaurants Survival)................................................60
Table 20. Range of responses for three cluster........................................................................61

Abbreviation List

 SMEs: Small and medium enterprises

 OLC: Organization Life Cycle
 WHO: World Health Organization

viii
 Chapter One

General Frame of the Thesis

1.1. Introduction:

The pandemic COVID-19 crisis and its outbreak, has severely affected national and global
economics as it has already impacted companies’ business operations, procurement lines, and
staffing resources. Even though the pandemic has been run for several months only, survival
of organizations is seriously threatened and their losses are huge. These short-term effects
will likely have long-term implications in terms of operational uncertainty, brand, and legal
risk.

Various enterprises, including restaurants, cinemas, transportations, hotels, big markets and
shops are all experiencing a rapid impact, and facing different issues with a certain degree of
vulnerable to commercial losses, such as a decrease in demand, supply chain disruptions,
cancelation of export orders, raw material shortage, and transportation disruptions, among
others.

It is undeniable that corona virus has negatively impacted businesses and many sectors have
been closed, which also has significant impact on major industries of the world that are
currently dealing with its devastating effects, and the biggest and most immediate impact of
the lockdown due to Covid-19 pandemic, from manufacturing to marketing, is halt in
business operations.

Today, as the COVID-19 pandemic continues, it raised fears of an impending economic

crisis and recession. Social distancing, self-isolation, lockdown and quarantine, in addition to
the event and hotel cancellations and travel restrictions, have reduced the workforce in all
sectors of the economy and have led to the loss of many jobs.

Hence, COVID-19 pandemic crisis has threatened the growth of many organizations, some
hardly continue to operate, and others will be running out of the stock soon, especially SMEs,
as the major victims of covid-19 outbreak. The main reasons go, that SMEs, usually do not
possess sufficient resources comparing with large enterprises especially financial and

1
managerial resources, and are not prepared for such disruption. Moreover, these enterprises
are highly dependent on their routine business transactions and a small number of customers.
Knowing that, SMEs are the backbone of many economies worldwide that provide income
and employment generation to a large number of people around the globe. But, unfortunately,
due to the COVID-19outbreak and lockdowns, and beside the unavailability of labors,
slowdown of productions, and transportation restrictions will be more likely to have major
implications and unprecedented adverse impact on many, if not most businesses growth and
even their persistence.

In this regard, crisis management in the modern world, is now more important than ever, to
face the challenges of COVID-19, since firms fall within the crisis, and then decide what will
do to overcome such a situation like COVID-19. Thus, the stages of crisis management are
very useful to drawn down as scenarios and plans in a systematic zone. It is actually a big risk
on firm’s survival if there was no crisis management to manage before, during and after the
crisis, supported by accurate and decisions.

1.2. Research Problem:

Crises are events with unknown consequence occurrence, such as the outbreak of COVID-19,
which is an inevitable reality that all societies face, and can be highly negatively affect
business cycle and its impact on financial loss, reduced sales volume, incapability of meeting
contract terms, cash flow difficulty, reduction in staff number, and even close down of the
business.

Organizations have been under pressure to respond to the COVID-19 crisis, even those with
established business continuity capabilities. Companies vary in their response to COVID-19
crisis, including the employment of crisis management. In addition, studies diagnosing this
issue is not existed in the Lebanese context, since the crisis of COVID-19 is very recent and
not even know how enterprises react to a situation like this. Using the approach of crisis
management. Therefore, the main issue of this thesis is to determine the extent of which
COVID-19 affect the life cycle of firms, and examine the level of adopting crisis
management, as an adequate approach, to respond to such a crisis for having a business
survival and growth.

2
1.3. Research significance

This study is considered as real value to the literature, since the subject of this study thesis is
completely new and not conducted based on the Lebanese context. Hence, this study is
actually help researchers to conduct additional research related to the crisis of COVID-19 and
its effect on organizational performance after the crisis. In addition, this study contributes to
all types of firms in using crisis management to overcome the problem of COVID-19 and its
effect on firm’s lifecycle and its survival.

As a researcher, this study contributes can expand my knowledge regarding COVID-19 and
its impact on life cycle of firms and crisis management as an approach to overcome such a
crisis. In addition, this study adds the understanding in doing a scientific research, including
data collection, by conducting surveys and interviews, data analysis using SPSS software,
and interpreting results according to previous studies.

1.4. Justification of the Study

Because of the current pandemic crisis affecting all companies in the world, it was very
essential to study the impact of  COVID-19 pandemic crisis on firms' lifecycle, and to
demonstrate to what extent the presence of crisis management would allow rapid responses to
mitigate its risks and to recover and take concrete action.

1.5. Objective of the Study

The main objective of this thesis is to examine the impact of COVID-19 pandemic crisis on
firm’s lifecycle, and the course of actions that are taken to respond to this crisis, using the
process of crisis management. Accordingly, several objectives are developed, including the
followings:

3
1. Building a review of literature regarding the crisis of COVID-19, life cycle of
organizations, and crisis management.
2. Measuring the risks that have been occurred due to the pandemic COVID-19, and
threaten the growth of firms’ businesses.
3. Examining firms’ adoption of crisis management as an adequate approach to alleviate the
crisis of pandemic COVID-19, and a suitable response to prevent firms from risks.
4. Building a recommended framework (model) as an approach to firms for present and
future actions in dealing with such a crisis like COVID-19.

1.6. Research questions

The following questions will be posed in order to begin our research and to explain the effect
that COVID-19 pandemic crisis has on firms' lifecycle.

• Q1: What are the implications of COVID-19 pandemic crisis that affect businesses?

• Q2: To what extent does this pandemic put restaurants in vulnerable positions?

• Q3: What procedures have been taken in order to respond the crisis?

• Q4: Does their responses considered as concrete actions and best practices to rescue
their businesses?

• Q5: To what extent are managers focusing on pre-crisis management and during-
crisis management to have quick responses rather than acting on the spot when the
crisis arises?

1.7. Hypotheses

According to research objectives, we suggest the following hypotheses to be tested in our

research:

H1: Lockdown due to COVID-19 pandemic has significant impact on restaurants’ operations
in Lebanon.

4
H2: Minimizing of customer capacity in restaurants due to social distance has significant
negative impact on revenues.

H3: Travelling restrictions due to preventing the spread of Corona virus has significant
negative impact on restaurants’ customer retention.

H4: Pre-crisis management has significant impact on restaurants' survival.

H5: During-crisis management has significant impact on leaning with COVID-19 pandemic
crisis.

H6: COVID-19 crisis affects adversely restaurants sector and crisis management leads
restaurants survival.

H7: Restaurants’ survival depends on their responses against COVID-19 crisis.

1.8. Key methodology

For this study, restaurants from Lebanon are selected randomly, believing that it could
generalize the population, and through Google forms, a questionnaire was filled and
submitted electronically by respondents.

A variety of quantitative data will be used in this study that will help in prediction and study
verification, which is sorted from a questionnaire. So by employing distinct statistics
techniques in Statistical Package for Social Science (SPSS), this data will be analyzed which
support or reject hypotheses mentioned above. This survey tends to address several
independent variables that have direct impact on business survival and firms’ life cycle.

The sample will be focused on restaurants sector that will reach restaurants’ managers, head
of departments, and accountants.

After testing the Validity and Reliability test, all hypotheses are tested at 0.05 level of
significance.

1.9. Contents of the study

5
The research “adverse impact of COVID-19 pandemic crisis on businesses survival and how
crisis management in its stages can mitigate risks and adopt with the crisis” is explained with
five chapters. The first chapter is a general framework for the study which is an introducing
chapter and clarifying the research problem in addition to the stating of its significance and
justification of the study, following the study objectives, questions and mentioning the main
hypotheses in addition to a brief explanation about the research methodology. In chapter 2,
we dig deeper to the theoretical background and previous related studies. It is mainly
dedicated to a literature review by overlooking to all studies that can allow to have better
understanding about the impact of COVID-19 crisis on organization and responses against
the crisis. In addition, to what extent does crisis management can mitigate risks and allow
restaurants to lean with the crisis. Then it represents related studies and articles to detect
there’s aim, methodology and findings. Chapter three “Methodology” presents the details of
methodology conducted in this research by explaining the research design and strategy,
hypotheses, mechanism of collection primary and secondary data. In brief, in addition to
explaining the rationale for using the method, this chapter explains the choice of variables
and sampling techniques to test hypotheses and identify the methodology used to collect the
desirable data. While chapter 4, includes 'Study and Discussion Findings' provide an
empirical validation of the research model by evaluating the study's degree of reliability and
validity. In addition, the results of each hypothesis that has been tested and evaluated are
clarified. Finally, the last chapter of the report is Chapter five, Conclusion and
Recommendations. It addresses our findings and offers the conclusion of this study,
recommendations and limitations.

6
 Chapter Two

Literature Review

2.1. COVID-19

Currently, the 2019–2020 Corona Virus pandemic is an ongoing global virus pandemic
named COVID-19. This pandemic is a global societal trauma, which is unique to our
lifetime. This outbreak was initially detected in the China city of Wuhan. The disease was
identified in December 2019 and the Corona Virus was listed as a public-related health
problem of international significance on 30 January 2020 after looking at its growth rates.
The Corona Virus was termed as a public related health crisis of international magnitude on
30 January of 2020, since the World Health Organization (WHO) was further upgraded and
recognized the pandemic levels, and has become one of the fastest spreading diseases that
humankind. Corona Virus has taken the world by storm mainly because the primary method
of transmitting the virus amongst different people is by close contacts: the virus itself is
transmitted via smallest of droplets, which are produced by an infected person during
coughing, sneezing, or simply by even talking (World Health Organization, 2020).

National and global economies have been seriously impacted by the outbreak of coronavirus
disease-2019 (COVID-19). Different companies face numerous problems with a certain
amount of losses. In particular, businesses face a number of problems, including a decline in
demand, disturbances in the supply chain, termination of export orders, shortages of raw
materials, and disruptions in transportation.  Within a short period, the reported cases grew
exponentially all over the world; as a result, the WHO declared COVID-19 a “pandemic” on
March 11, 2020 (Shafi, Liu, & Ren, 2020)

COVID-19 will have a more profound effect in developing countries that will make it much
more difficult for them to implement effective stimulus without facing binding foreign
exchange constraints (UNCTAD, 2020a). Furthermore, controlling the COVID-19 outbreak
will revive the economy, but the risk of continued financial stress is very high even after
2020 Invalid source specified.. Hence, the economic effect would be drastic, but COVID-19
demonstrates that health care must be the primary objective of people.

7
2.2. Organization Life Cycle (OLC)

Historians and academics have observed that organizations, like living organisms, have life
cycles. They are born (established or formed), they grow and develop, they reach maturity,
they begin to decline and age, and finally, in many cases, they die (INC, organizational
lifecycle, 2020). Theorists predicted that each stage would manifest integral
complementarities among variables of environment (“situation”), strategy, structure and
decision making methods; that organizational growth and increasing environmental
complexity would cause each stage to exhibit certain significant differences from all other
stages ( Miller & H. Friesen, 1984). Organizations are impacted by external environmental
influences as well as internal variables at every stage of the life cycle. It has been seen that
companies and whole sectors' rise and fall, which is referred to as growth stages. These stages
of development tend to be linear, occur as a not readily reversed hierarchical progression, and
include a wide variety of organizational activities and structures. Organizational life cycle is
an important model because of its premise and its prescription. The model's premise is that
requirements, opportunities, and threats both inside and outside the business firm will vary
depending on the stage of development in which the firm finds itself (INC, organizational
lifecycle, 2020).
Threats in the start-up stage, for instance, vary from those in the maturity stage. As the
company goes through the stages of evolution, changes in the nature and number of
requirements, possibilities, and risks bring pressure on the company to adapt. Organizations
switch from one stage to another when the fit between the organization and its environment is
so insufficient that either the efficacy and/or effectiveness of the organization is severely
compromised or the survival of the organization is threatened.

 The OLC model's prescription is that the firm's managers must change the goals, strategies,
and strategy implementation devices to fit the new set of issues. Thus, different stages of the
company's life cycle require alterations in the firm's objectives, strategies, managerial
processes (planning, organizing, staffing, directing, controlling), technology, culture, and
decision-making. Five growth stages are observable: birth, growth, maturity, decline, and
revival (INC, organizational lifecycle, 2020).

Entrepreneurs who are involved in the early stages of company growth are unlikely to be
concerned with decay and breakdown problems in the life cycle. Indeed, in areas such as

8
securing capital, developing relationships with suppliers and consumers, planning a physical
location for business operations, and other aspects of business start-ups that are vital to the
establishment and maintenance of a viable company, their concerns are fitting. Basically, the
very first stage of the organizational life cycle is almost entirely concerned with these firms.
On the other hand, small businesses that are well established may find OLC studies more
important. Indeed several recent organizational life cycle analysis have explored ways in
which organizations can prolong desired phases (growth, maturity) and avoid negative phases
(decline, death).

From new goods to new markets to new management philosophies, both company owners
and other corporate leaders can consider a range of options designed to affect the life cycle of
the enterprise. After all, if a business starts to enter a period of decline, a company will not
inevitably continue to collapse into ultimate failure; many businesses can reverse such slides
(a development that is sometimes referred to as turning the OLC bell curve into an "S"
curve). But entrepreneurs and executives should understand that a business is often
somewhere along the spectrum of the life cycle, and that business success is always focused
on understanding where your company is positioned in the measuring stick and implementing
tactics that are ideally suited to that role in the cycle.

One of the best resources that can indicate five general stages of the organizational lifecycle
map, including establishment -development - child - adolescence and senility. By analyzing
organizational behavior, the current state of the company and contributing to the better
establishment of strategies, marketing and financial plans, etc. One of the issues that hinders
the satisfactory execution of the relevant strategy is to ignore the executives' organizational
lifecycle map.

In the three phases (design, construction and operation) of the life cycle of a building project,
the factors that influence process efficiency are defined and ranked by degree of importance.

Enterprises as one type of organization are affected by a variety of crises, such as changes in
competitors, marketing alliances, and new market products, availability of resources,
corporate acquisitions, and government regulations. (Keeffe & Darling, 2008). Management
researchers have conducted research on the organizational life process for several decades
and developed a variety of models of the 'life-cycle.'

9
From the perspective of enterprise goals, (Churchill & Lewis, 1983) brought up a five stage
model – Existence, Survival, Success, Takeoff and Resource Maturity. When an entity
transitions from one life-cycle process to the next, problems arise. All of these difficulties,
challenges and obstacles force businesses to make reasonable decisions, because the wrong
choices lead to company crises.

Concerning COVID-19, more changes to the business network have been seen in the past
months than in the last ten years. Businesses across the globe have been forced to pivot
rapidly, allowing workers working from home to link and protect vital business properties. At
the center of this pivot is the enterprise network and the drastic and unexpected change in
priorities is transforming how companies invest in networking technology. It’s a crisis that
affects the life cycle on the enterprises in their different stages, and affects their operations,
revenues, market share, and even the capacity of the customers. All factors that have been
caused by Covid-19 and its rapidly infection, most of the organizations closed as a result of
lockdown, and others, adopt working from home, or working by shifts which automatically
decreases the productivity of the firms.

2.3. Life cycle of Restaurants Industry

The life cycle of a company reveals the different phases in which companies work, advance,
and slump within an industry. Usually, an industry life cycle consists of five phases: startup,
growth, shakeout, maturity and decline. Such phases may last for varying periods, some may
be months, and some may be years.

Abnormal is the new normal. The restaurant industry was forced into uncharted territory in
March by state and city restrictions to stem the spread of the coronavirus pandemic.
According to the National Restaurant Association's estimates, an estimated 30,000 U.S.
restaurants have already closed for good and more than 110,000 are predicted to shut down
soon. COVID-19 will have long-term effects on the restaurant industry, and awareness of
hygiene, sanitation and food safety on both sides of the counter will be critical for both
employees and customers. In addition, operators will be required to update technologies to
provide for contactless transactions.

10
For all of us, this pandemic has created new problems, and we are all now at different levels
of social distancing, isolation and quarantine, and our lives has been affected from every
aspect.  Strategies to flatten the COVID-19 curve such as community lockdowns, social
distancing, stay-at-home orders, travel and mobility restrictions have resulted in temporary
closure of many hospitality businesses and significantly decreased the demand for businesses
that were allowed to continue to operate, However, almost all restaurants were required to
restrict their practices to only take-outs. Restrictions on travel and stay-at-home orders
imposed by the authorities have led to a sharp drop in the occupancy and revenue of
restaurants.  The hospitality industry is recovering slowly, and the COVID-19 crisis continues
to have a profound effect on the way hospitality industry operate. (Gössling, Scott, & Hall,
2020). Visible sanitizing efforts (such as hand sanitizers at the entry, staff wearing masks and
gloves (Gursoy, Chi, & Chi, 2020).

To evaluate the (differential) impact of these operational strategies on the attitudes and
behaviors of clients, further behavioral and causal research is needed. Unfortunately,
Compared to past crises, the severity of this crisis and its adverse effects on activities,
workers and consumers is unrivalled. It is important to generate new information that can
provide the industry with insight into how to adapt their activities according to the needs of
newly emerging customers and because of the COVID-19 pandemic. In the context of the
hospitality industry, the restaurant industry is regarded as having a widely embedded, high
level of business risk (Singal, 2012) which has been severely exacerbated during the
pandemic (National Restaurant Association, 2020).

Under uncertainty about the reduction of COVID-19 damage, increased operating risks and
liquidity shortages are likely to make shareholders consider the possibility of selling the
stocks they hold, resulting in a sharp decrease in stock returns of restaurant firms. The ability
of restaurant companies to cope with the threats of COVID-19 is critical in suffering from
loss of sales, resulting in different market assessments, depending on the relevant
characteristics of a company.

Because of the lockdown policy in early 2020, restaurants have been forced to close.
Although after reopening, and because of the social distancing strategy, jurisdictions
recommended or directed certain companies to concentrate on delivery service or to decrease
seating capacity. For the future of restaurants, the outlook is disastrous.

11
2.4. Restaurants industry in Lebanon

Many restaurateurs have tried to make food deliveries work. Daytime service is being added
to places that were usually only frequented at night. Downsized menus sourced from local
produce are replacing imports, which have become far too expensive as an acute dollar
shortage led the national currency (AL JAZEERA, Al JAZEERA media network, 2020). All
restaurants closed for dine-in service when the country went into partial lockdown on March
15. Now, most are struggling to reopen, and many will not, say industry insiders (AL
JAZEERA, AL JAZEERA media network, 2020). All restaurants closed for dine-in service
when the country went into partial lockdown on March 15. Now, most are struggling to
reopen, and many will not, say industry insiders.

“It’s been really drastic,” Maya Noun, Secretary-General of the Syndicate of Owners of
Restaurants, Cafes, Night-clubs & Pastries in Lebanon told Al Jazeera. She said 800
establishments had closed down permanently since October – when anti-establishment
protests started sweeping the nation- with 200 shutting their doors in January alone.

Some 25,000 employees lost their jobs in the 4-month period between October and January,
she said, in a sector that used to employ 150,000 people (AL JAZEERA, AL JAZEERA
media network, 2020).

So, it is predicted by analysts that over half the restaurants would not survive. In response to
this unprecedented health crisis, hospitality organizations should promote employee
compliance with COVID-19 safety standards and protocols. Hospitality safety studies,
however, focused primarily on food safety rather than employee safety, such as the factors
affecting the introduction of food safety measures. On the other hand, the emerging
hospitality crisis management literature appears to concentrate more on marketing and
organizational maintenance strategies for organizational response.

2.5. Crisis

From different viewpoints, researchers and theorists have identified crises. Crisis is an
incident of low likelihood and high impact that can threaten the credibility, sustainability and

12
viability of organizations, it can have serious effects on the revenue sources of a business; a
poorly handled crisis can seriously harm a company, its image and its brand. Moreover,
Crisis threatens the sense of safety, principles and appropriateness of the public, Crisis can
arise with little or no notice, and any organization can face so.

Crisis is an occurrence that shocks people, reduces their time to formulate a response and
challenges their high priority goals, it is a danger to the existence of the company itself and to
the whole system.

Three existential effects of a crisis were stated in Pauchant and Mitroff (1992): first a crisis
can threaten the credibility of an entire industry; second, a major crisis can reverse an
organization's strategic mission; third, the impact occurs at the individual level, disrupting the
subjective world of people, the sense of self-worth, strength, and identity; their inner
cohesion. According to Mitroff and Anagnos (2001), Crises have been divided into seven
groups, based on the effect. They are economic, intellectual, physical, human, reputational,
psychopathic, and natural disasters.

An organizational crisis is called an abrupt and unexpected occurrence that contributes to

restlessness among an organization's individuals. In general, any incident that creates an
unsafe and dangerous situation and affects a community, a group of people, or an entire
society can be a crisis. Typically, a crisis arises at a brief notice and induces the feeling of
panic and risk that produces a series of unpredictable events. A crisis produces circumstances
where time is limited and it is important to make a swift and successful decision. In addition,
crisis triggers elements of surprises, where the result of a specific move cannot be anticipated
by anyone. The crisis is creating a lack of stability in the working climate and worsening the
situation. Not only do crises happen in organizations, but they are also part of everyone's life.

Within each crisis, there are six stages: (1) warning; (2) risk assessment; (3) response; (4)
leadership; (5) resolution; and (6) recovery. This is the fifth of six subject briefings to discuss
a particular stage of crisis, to define the particular problems of that stage and to provide
manageable solutions. The fifth stage of a crisis is the process of resolution. During this
process, members of the crisis team will convey "all clear" alerts to affected audiences and a
return to normalcy."

The pandemic of the COVID-19 coronavirus is the defining global health issue of our time
and the biggest threat we have faced since the Second World War. The virus has spread to

13
every continent except Antarctica since its appearance in Asia late last year. It’s a crisis that
most of organizations are suffering from. This type of crisis has impacted all aspects in our
daily life in addition to firms’ life cycle. COVID-19 pandemic crisis is an inevitable threat
that each sector have faced, and tried to make recovery actions, some of these organizations,
that have the opportunity to survive, make a quick response to keep moving on by applying
crisis management or by making creative procedures that guarantee the customer loyalty ad
retention, although the inevitable losses that caused by Covid-19. But the impact of the
pandemic is significant that leads to many company closure that couldn’t handle the crisis, or
those sectors their revenues depend on the presence of customers to continue operating, for
example restaurants and hotels.

2.6. Crisis Management

Organizations today function in a more volatile world of risk than ever before. Preventing
the materialization of all risks is simply impossible. As such, organizations, ranging from
cyber security threats, data breaches, mismanagement and financial fraud to natural disasters,
need to be prepared for unpredictable events, so instead of the impact of the event or crisis
itself the greatest harm to a company frequently lies in unsuccessful management of the
situation. A critical function of every company today is crisis management. The reason is that
failure causes the organization to be seriously threatened by the loss of shareholders &
stakeholders and leads to the organization closure. In recruiting & preparing crisis
management teams and performing simulations, preparation plays a very crucial role. Public
relations, legal affairs, defense, logistics, finance and human resources are the most critical
factors. There is no question that the crisis is a sudden occurrence that occurs without the
company being invited, but serious steps will have to be taken to resolve the situation.

Preparing when it happens is a safe way to shield an organization from crises. If you take
additional action to plan for a potential crisis, you are less likely to face adverse effects.
Crisis management is called the mechanism or method by which such unpredictable and
dangerous circumstances are dealt with. Previous research in crisis management tends to
focus on the crisis and its management, ignoring the enterprise's life stage. However, at each
life stage, the enterprise manifests certain struggles (Adizes, 1999). These struggles, which
consist of the enterprise’s reaction to crisis, possess their own characteristics, procedures and

14
requirements according to that concrete stage. At the same time, the failure to manage the
crisis effectively leads to even more risk-laden eventualities for the organization and its
stakeholders (Ulmer et al, 2007). Crisis management should also change its attention
according to the life phase of the organization in order to identify, differentiate, and assess
the crisis in time and efficiently handle it.

It is possible to break crises into three levels. Identifying each stage helps a crisis
management team to address perceptions and awareness appropriately.

Before: There is currently no known problem. In maintaining knowledge and readiness, the
company does the regular due diligence. For any urgent needs, a team is on standby.

During: The crisis protocol has been enabled and 24/7 management is involved.

After: The crisis has passed and ramped down the squad. The situation will be controlled by
additional personnel and the team may be prepared for a second round of crisis scheduling.

2.6.1. Pre-Crisis Planning

Planning for the unexpected is the best way to prepare for any crisis. Identify the variables
and unknowns and set out as many possible iterations as realistic contingency plans.

Train the team and associates, offering reasonable goals. This will require some preparation
in the manner of a fire drill and maybe defining a situation space. Using all the resources
available to help create a practical scenario and track the actual time of turnover. Have the
right tools and team ready and capable with limited notice of moving any crisis. Preparing
media strategies and statements for the management team is one main priority of a crisis. It is
equally necessary to train individuals to respond to social media questions and comments.
Crisis plan can help management respond and control damage to the organization's
reputation, financial condition, market share, and brand value. Everyone, from senior
management to receptionists, will have a predetermined role to play in an anticipated crisis. A
facility crisis-training program should familiarize employees with the plan, including
deployment of resources, notification and protection of guests, communication with the
media, and clean-up procedures. Portions of a sample crisis-management plan are included to

15
help readers design their own plans, on their own or in conjunction with a crisis-management
consultant (Barton, 1994).

2.6.2. When a Crisis Arises

Initiate planning for war rooms. Before making any decisions, take the time to process the
facts at hand, rather than making rash judgments. With its many moving pieces, in a crisis,
it's key to walk before you run. To ensure you're streamlined, take the time to communicate
with those involved. Internally, with partners, and definitely with your audience, contact is
crucial. Make sure that the sound and message are aligned across all channels and languages.
Moderating Quick-fire content will now be needed. Keep the three E's in mind: empathy,
involvement, and escalation.

For as long as it takes, the team will need to continue to track the situation. Days or weeks
can last for a crisis. Make sure your team is ready, but give time to rest for them. Weaker
teams raise the likelihood of being at risk mistakes.

2.6.3. Post-crisis behaviors

Maybe the crisis is over, but you are far from over. Depending on how it is handled, the crisis
will affect the brand's reputation in some way, either negatively or positively. Your
credibility is everything. To control the staggering noise, prepare for additional assistance for
a few weeks after the crisis.

Updating your plan of activities following a crisis is critical. You don't want to look to the
public as insensitive. Make sure you analyze and report on how the crisis unfolds, collect
lessons, and remember the individuals who helped you during the crisis (including partners,
reporters, and supporters). Your audience can feel a stronger connection to your brand during
a well-managed crisis.

A few weeks after the World Health Organization declared COVID-19 a pandemic, you
might suggest we are far beyond crisis management planning (WHO). Although significant
future analysis will be the focus of the evaluation of our pandemic preparedness as a society,

16
the likely duration of the crisis also enables individuals and organizations to incorporate
certain essential best practices in crisis management. If you are leading a small company or a
large one these best practices can be implemented.

Preparedness and Scenario Planning

It is possible that the COVID-19 crisis will last many months. Although we may be
comforted that it will have an epidemiological ending, at various points in time the effect on
the organization may be different. At different points in the life of the crisis, these
consequences will affect your organization differently, which can change the crisis response
from that in its early days. As the coronavirus becomes less prevalent, decisions on returning
people to the workplace and how operations will proceed without facilitating a revival of the
virus itself will also have to be taken (as is now seen in China).

Communicate

In crisis management planning, this has always been a significant pillar. In a crisis where
physical distance is central to the crisis coming to an end, its significance has increased
tenfold. Organizations ought to prioritize their workers' health and welfare. One way to do
that is to encourage openness around the response of the company. The workers are anxious
and scared. For multiple employers, these communications may be different since certain
workers may continue to work, but a crucial phase is regular contact with managers who are
highly visible. A plan to resolve the concerns of consumers, regulators and other stakeholders
such as investors is also coupled with the internal relations strategy. In the long run, keeping
those for whom you work aware of your current position as well as your contingency plans
will strengthen those relationships.

Best practices

The majority of emergencies provide an opportunity to recognize the deficiencies in the

crisis management planning of the company. In reality, this crisis could be the ultimate test of
your earlier planning efforts. Take note of the issues faced in the crisis, take note of the
transitional measures and how the company might have been better prepared in the future.
Document these observations every day and when the company looks back on its reaction,
they will be extremely useful. There is no doubt that as this situation comes to an end, crisis
management planning will take on greater significance. Not only will the focus on
preparedness be a priority for states, but also for all organizations, large or small.

17
2.7. Previous Relevant Studies

1) Dabbaagh (2020) examines the role of decision-maker in crisis management, using a

qualitative approach through in-depth interviews with 15 decision-makers. The results
revealed that there are eight concepts that develop a wide theory of the crisis decision-making
process. From these findings, they generate a theory that explains the crisis decision-making
process and its skills and strategies, to benefit decision-makers in making the decisions
necessary to confront crises such as the COVID-19 pandemic crisis. In light of the findings of
the study, they need to pay attention to training decision-makers in the decision-making
process in times of crisis, as well as increasing their awareness of the factors affecting crisis
decision-making, as well as training them on proactive thinking to save time, effort and
money and reduce the severe consequences of crises. The interviewees' responses reflected
that the crisis decision-making process is one of the complex thinking processes that aim to
choose the best alternative, or the best and most suitable solution to achieve the goal in a way
that suits the characteristics of the situation, and the diversity of alternatives. Decision-
makers must have resilience at all levels of the crisis in order to provide efficient and
effective crisis positions management, maximization of the capacity to handle emergencies,
regulation of crisis management teams and their executive components are faced with
alternatives to crisis management, monitoring and control. All of these can decrease the
amount of material and human injuries, as in the administration of the COVID—now the 19th
pandemic crisis (Dabbagh, 2020).

2) De Frietas & Stedefelt (2020) examines that COVID-19 pandemic underlines the need to
build resilience in commercial restaurants’ food safety which aims to explore four stages that
can provide insights into how restaurants are responding to the pandemic in terms of the
safety of food production and the health of the people involved, whether they are kitchen
workers or customers, that’s done by using a quantitative method and conducting a survey in
March by the National Association of Restaurants, indicates that 61.8% of the bars and
restaurants had to lay off some of their employees, estimating that between 600 and 800
thousand restaurant workers were laid off at the time. In addition, 53.2% of the surveyed
companies reported that they experienced between 50% and 90% reduction in revenue
compared to the same period last year.

18
It’s finding that it is urgent that commercial restaurants, as structures, build active resilience.
This building of resilience is focused on the application of safe practices in the receipt,
storage, processing, packaging, transporting and delivering meals; welcoming customers in
restaurants; and maintaining safer working conditions for all employees, whether they are
kitchen workers, managers, cleaners, waiters, or delivery drivers. It is essential that all staff
members are involved in food safety decisions.  An essential presence leads to the creation of
active resilience because if all those involved have the ability to express their opinions, they
will create a consensus of principles and values for restaurants to adopt based on their
different social contexts (De Frietas & Stedefelt, 2020).

3) Song, Yeon, & Lee (2020) aims to show how the effect of COVID-19 on U.S. restaurant
firms’ stock returns varies according to the firms’ pre-pandemic characteristics which are
classified into three firm level dimensions (financial conditions, corporate strategies, and
ownership structure). This study tends to shed light on the impact of Covid-19 pandemic on
the U.S. restaurant industry by providing insights into drivers of restaurant firm’s stock
returns during the COVID-19 shock (Song, Yeon, & Lee, 2020). And that’s goes by
conducting a quantitative methodology, and the sample consists of all publicly traded U.S.
restaurant firms with North American Industry Classification System. And employ 795 firm-
year observations obtained from annual reports and other databases.

A research model as follows:

RETURNSit = α0+ α1COVID-19t + α2X′ i,pre-2020 + α3 COVID-19t×X′ i,pre2020 + εit,

COVID19, independent variable, represents the weekly growth rate of the number of
confirmed U.S. COVID-19 cases.

X′ pre-2020 represents pre-pandemic firm characteristics, consisting of three dimensions (i.e.,

financial conditions, corporate strategies, and ownership structure)

COVID-19t × X′ pre2020 represents an interaction term of COVID-19

X′ pre-2020; ε represents an error term, and t and i represent time (i.e., week) and firm.

19
The study finds that COVID-19 has generated unprecedented difficulties for businesses,
unprecedentedly challenging as COVID-19, the level of overall for any restaurant, financial
distress could have become extremely severe. Company, and thus the financial distress
caused by the leverage of a firm, becomes rather marginalized proportionally. Moreover,
Shareholders and customers could be more optimistically viewed by a company with higher
leverage; therefore, leverage of restaurant company’s stock declines can be alleviated. For a
business that was more profitable than its rivals prior to COIVD-19, the effect of the COVID-
19 shock on a company's potential financial results could be greater. Additionally, the gap
between pre-pandemic and post-pandemic profitability, can be greater for a firm that used to
be profitable right before the pandemic. Among restaurant companies' corporate strategies,
only internationalization positively moderates the relationship between COVID-19 and stock
returns. This shows that the level of internationalization is in response to COVID-19, it
mitigates stock declines of restaurant firms.

So, we can conclude that restaurant companies with previous characteristics of larger size,
more leverage, more cash flows, fewer ROA, and more internationalization are more resilient
than otherwise comparable companies to stock declines responding to COVID-19. Whereas
there was no major moderating impact on the relationship between COVID-19 and stock
returns on dividends, franchising, institutional ownership, and management ownership

4) Jack Lai, Zainal Abidin & Hasni (2020) Aims to review the significant adaptations made
by SME restaurants in Malaysia throughout the MCO period amidst the COVID-19
Pandemic. The adaptations made commonly designed actions to (i) Nurture Creativity,
(ii) Sustain Reputation, and (iii) Maintain Profitability. For SME restaurateurs to accept the
COVID-19 epidemic. The authors have outlined the key adaptive measures that can be
implemented by SME restaurants based upon the best practices from exemplary restaurants
by conducting literature review.

The findings of this paper include important survival guides. From a practical perspective,
this paper's outcomes will urge managers to develop effective contingency plans better and
allocate funds to reduce the impact of such a crisis. These can be helpful for relevant policies
and decision-makers to incorporate the main features of small and medium-sized restaurants
in order to reduce the effect on small and medium-sized restaurants for the near future.

20
Theoretically and conceptually, the results of this analysis may form the basis for developing
a crisis management system for SME restaurants to mitigate unforeseen challenges in the
business environment (Jack Lai, Zainal Abidin, & Hasni, 2020).

5) W. Bartik, Bertrand & Cullen (2020), the way small businesses are adjusting to COVID-19
which aims to focus on assessing the current level of financial fragility among small
businesses, and the degree to which small enterprises have already closed and laid off
employees temporarily, in addition to the expectations about how long the crisis will last, and
how this is affecting business decisions, moreover to the decisions about whether to seek
funding through the CARES Act, and how this will impact layoff and closure decisions. And
that’s done by conducting a quantitative approach of a survey for more than 5,800 small
businesses, with a questionnaire includes 43 questions.

The finding where that COVID-19 crisis is a once-in-a-generation crisis for small businesses
in America, especially those specializing in face-to-face service, so one fifth of America's
retail, leisure and hospitality workers are especially vulnerable to the current pandemic in
these industries.

Almost fifty percent of American employees are employed by small businesses. Yet, their
findings underscore the financial fragility of many small businesses, and how significantly
impacted by the current crisis they are facing. They found that 43 percent of businesses were
temporarily closed in their study, and nearly all of these closures are due to COVID, which is
skewed towards retail sales, and the employment has fallen by 40 percent (W. Bartik,
Bertrand, & Cullen, 2020).

6) Alves, Jose C & Lok (2020) explores how small businesses responded in the immediate
months following the Covid-19 outbreak and focuses on China's Macau Special
Administrative Area, and provides insights on how small businesses try to find recovery
actions by applying crisis management strategies in order to survive and cope with the
pandemic by providing a qualitative analysis of small businesses in Macau, China, in the
months following the outbreak. They collected interview data from six local small firms.

21
They found that the sudden decline in demand has the strongest impact on small firms. As
compared with large firms, new startups and small firms show high flexibility in their
reactions to the crisis

They have also found that before the outbreak, certain small enterprises had a structured
crisis plan and strategy, and these organizations appear to have a longer background, crisis
management expertise, and operate in more controlled sectors. And as crisis management is
an ongoing process, continuous improvement will minimize the risk of the next crisis by
integrating lessons learned (Alves, Jose C, & Lok, 2020).

7) Van der Heyden & Nathanial (2020) illustrate in their recent working paper how the “5Es”
could be used to shape a response to the COVID-19 crisis, by using a qualitative
methodology by identifying literature review. Engage, Explore, Explain, Execute and
Evaluate some aspects of the framework could still be useful as governments struggle to
control the spreading virus. They remind the important role that experienced crisis manager’s
play in times like these. They find that there are basic principles that experienced crisis
managers can adapt to suit the situation, and many of the principles one of them learnt
through many years of fighting crises in the world of finance readily apply to COVID-19
(Van der Heyden & Nathanial, 2020).

8) Deloitte (2020) aims to summarize key questions and considerations to support

organizations in assessing the robustness and sustainability of their crisis response program.
By applying qualitative methodology through collective conversations with clients across
industries, they understand that some organizations have moved immediately to response
mode, without adequately activating crisis management capabilities through a formalized
crisis command center and crisis response plan. The greatest damage to an organization often
lies in unsuccessful management of the situation, rather than in the effect of the incident or
crisis itself. Moreover, structured approach is essential in ensuring adequate governance and
operating structures are established, crisis response resources and enablers are established,
and the crisis management process is informed by complete and accurate data and insights
(Deloitte, 2020).

9) Dunn (2020) examines that is the time to refresh and revise existing emergency
contingency plan to prepare for and mitigate against these risks, and to exercise leadership, to
22
communicate with stakeholders clearly and transparently, to build trust, and to continue to
take and plan for concrete actions by identifying steps to protect the safety of their
employees, ensure business continuity, and minimize losses caused by operational and supply
chain disruption. They maintain templates by applying a qualitative methodology, to give a
blueprint to any crisis, and covid-19 pandemic crisis is such.

So they find that crisis management is giving items that have high priority to mitigate
business and legal risks, in addition to some of the key steps that companies with strong crisis
management have to take, and considerations that all companies should keep in mind in order
to move forward, to reduce business and legal exposure and guarantee their survival (Dunn,
2020).

23
 CHAPTER THREE

Research Methodology

3.1. Introduction

The methodology used to perform this research is focused in this section. It is arranged as
follows: research design, data source, population and sampling, research instruments
(techniques), instrument administration, and data analysis. The study adopts many methods to
collect data to solve the research questions from different managers and heads of affiliated
businesses. It studies the relationship between variables and validates the hypotheses
scientifically.

3.2. Research Methodology

Research is a device applied by entities to systematically discover and organize items. It is a

structure used to set the strategy of the study actions and to produce solutions to the problem
addressed. For greater correctness and precision in the results, a quantitative study has been
introduced. The study is attentive on assessing the pandemic of Covid-19 crisis and its impact
(effect) on the life cycle and survival of enterprises in terms of their operations, revenues and
customer retention by explicitly defining, clarifying, thoughtfully understanding, criticizing
and analyzing the correlation between impact, and responses actions. The research is a
theoretical, analytical, and intellectual use of data and information to analyze the topic under
research. It comprises of additional functionality to collect, define, illustrate, criticize, and
analyze stock of data. It requires a theoretical interpretation of the choice of a method or
combination of methods to be used, as done in this research. Then, seven hypotheses and
research questions were formed up from information gathered through past years researches.
In this study we are focusing on main independent variables which are impact of Covid-19,
crisis management and responses. To give a real picture about the current crisis and can
highly affect the whole research result which is firms’ life cycle.

24
3.3. Research Design

The research architecture is the research framework and structure. This study focuses on
assessing the impact of the Covid-19 pandemic crisis on the life cycle of businesses, this
design uses quantitative analysis. The primary research tool used in the research is the
quantitative approach survey questionnaire with restaurant managers. For that reason, the
design here was descriptive and inferential and predictive with quantitative research to
deliver a better understanding of the impact of covid-19 pandemic crisis on firms’ continuity
and life cycle depending on their responses to identify best practices and concrete actions.
The questionnaire is structured into three sections. The first section consists of questions
about the impact of Covid-19. The second section covers questions concerning the Crisis
management. The third section consists of questions concerning restaurants responses. This
quantitative research includes collecting objective data and analyzing it through descriptive,
inferential, and predictive statistical analysis. The results will examine the proposed
hypotheses and conclude if it is accepted or rejected.

3.4. Research Strategy

To achieve the ultimate purpose of the analysis, quantitative study was used as the research
technique (approach). In the quantitative analysis, questionnaires were established based on
previous studies and information from the researcher's field of expertise, as well as expert
feedback and comments. The study uses a survey questionnaire that is formal and structured.
This tool is effective and efficient to gather data from a large population to investigate the
research topic.

3.5. Sources of Data

During any research analysis, the core substances are both data and information. The data
collected contains the important thing in order to unlock the transmitted knowledge that the
researcher may have through assessment and analysis so that the outcomes from these data
can be achieved and enacted. Methods used by the researcher to collect data must be specific
to the analysis in order to make perfect sense of the collected data in the interpretation.

25
We can mainly gather Information from primary and secondary sources. The primary sources
known as raw information are information obtained via a survey questionnaire. Data obtained
from references such as books, papers, statistics, accounts, government sources, prior
research, documents, websites, and so on are secondary data. The key objective of using
secondary data is the development of a questionnaire for the survey.

3.5.1. Primary Sources

Primary sources refer to first handed data that are observed directly. Primary data is data
obtained by the researcher through various methods such as questionnaires, interviews,
observations, etc. Several restaurants managers in Lebanon are contacted directly to collect
specific and reliable information. The questionnaire is also the primary source used to collect
data.

3.5.2. Secondary Sources

In gathering information, this analysis also utilizes secondary sources. There are data
collected from books, blogs, websites, records, journals, reports, or previous studies that
correlate with the impact of Covid-19 on restaurants and the way they respond and react to
the crisis. This supports the analysis by considering the core principles in other studies that
link our research to previous studies.

3.6. Quantitative Study

On the other hand, it is known as quantitative study to gather data on a larger scale than
qualitative analysis that can be easily measured or computed through mathematical and
statistical methods for generating meaningful information and then knowledge.
Comprehensive inspection is the best to do to distinguish the features and properties of a
certain phenomenon being studied.

26
3.7. Questionnaires

The purpose of using a survey questionnaire is to collect data and obtain others’ experience
and knowledge that will be used to evaluate the extent of impacts of Corona virus on
restaurants and the importance of crisis management on mitigating the crisis risks and the
way restaurants managers respond and what procedures they’ve followed. (Rani & Roopa,
2017)

3.8. Population and Sample of the study

Different restaurants are randomly chosen for the research as a sample. The population
includes managers that have activities in restaurants, r - value and activities that determine
responses. The number of managers selected confirms that the selected population is
adequate to draw a reliable and useful inference.

3.9. Sampling Techniques

The simple random technique is applied for selecting participants in this study. Simple
random sampling is a probability sampling technique. It means that every single respondent
has the chance of being covered in the sample. This technique excludes biases from the
selection process.

3.10. Data Collection Instruments

The formats used to gather data are research instruments. In terms of research problems,
theories, and meaning, instruments are selected. A survey questionnaire is constructed with
an answer ranging from "strongly disagree" to "strongly agree" based on a five-point Liker
scale. It also requires issues that are close-ended and have clear decisions. The survey
questionnaire includes three parts. It aims to reveal if customers noticed the difference of the

27
service quality before and during the economic crisis and covid-19 virus, and when it was
more effective. The second section discovers the importance of crisis management in
mitigating crisis risks. In addition to the different responses have been followed. The
questionnaire is distributed through the internet.

3.11. Data Analysis

Data analysis is the most important part of the research. It is done to obtain useful and
applicable information about the topic. It aims to compare and find relationships between
variables to get results.

Data gathered are assessed through the utilization of SPSS software specifically through
descriptive, inferential, and predictive statistic techniques. A total of survey questionnaires
are disseminated, whereas are useful. The research utilizes the quantitative method to
examine hypotheses which is to examine the impact of the independent variable (X) on the
dependent variable (Y). The research begins with the analysis model, identifying variables,
setting hypotheses, gathering data, and performing analysis.

The p-value is used to decide that a p-value less than 0.05 of each independent variable
reveals a significant association with the dependent variable. A descriptive statistic tool is
also used to analyze the results using SPSS. From these analysis tools, conclusions,
recommendations, and suggestions for future researches are created.

3.12. Testing Reliability and Validity Tests

3.12.1. Testing the Reliability

Cornbash’s Alpha test is used in order to test the reliability. The value which is less than 0.5
is unacceptable, and a value between 0.5 and 0.6 is poor, from 0.6 to 0.7 is acceptable, from
o.7 till o.9 is good, and above 0.9 is considered excellent. As per table 1, we can observe a
high cronbash’s Alpha (0.868), which indicates a good reliability of the questionnaire. In
addition, we found that the majority of items were to be deleted from each item of the scale
by checking the reliability. As a result, this study approves the overall Cronbach test, which

28
allows all the questions in the analysis to be maintained. Appendix A indicates that the high
reliability does not improve.

Table 1. Reliability Statistics

Cronbach's Alpha N of Items

.868 38

3.12.2. Testing the validity

As previously explained, by reviewing various previous studies listed in the literature review,
the questionnaire used in this study was created. In addition, to ensure validity, the supervisor
checked and suggested how to enhance the quality of the questionnaire. Eventually, the
researchers performed KMO and Bartlett's Test of Sphericity tests in order to test whether the
variables are related and sufficient for structure detection and to analyze the sampling
adequacy. In addition to verifying whether the correlation matrix is an identity matrix, the
Bartlett test tests the relationship between variables. A significant value of less than 0.05
shows that these data do not generate an identity matrix and are thus roughly normal
multivariate and suitable for further analysis. Additionally if the KMO value is adequate, we
should ensure the sampling is adequate. A bare minimum of 0.5 and the value between 0.5
and 0.7 is acceptable, the value between 0.7 and 0.8 is good, the value between 0.8 and 0.9 is
very good and the value between 0.9 and above is excellent. As per table number 3 KMO
have the value of (0.78) which is a good indicator, and Bartlett’s test of Sphericity (2837.108)
at a significant (0.000) at 0.05 level.

As a result, because KMO has a high value and BTS is relevant (p=0.000), we can infer that
there is a strong patterned relationship for further study between the variables and sampling
adequacy.

29
 Table 2. KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .780

Bartlett's Test of Sphericity Approx. Chi-Square 2837.108

Df 703

Sig. .000

30
 CHAPTER FOUR

Data Analysis
4.1 Descriptive Analysis

4.1.1 Characteristics of Restaurants Underwent the Survey

The research sample is restaurants across Lebanon. It contains all segments of restaurants,
fine dining restaurant, and casual restaurants, take away restaurants and quick services like
KFD, MacDonald’s… These restaurant belongs to small and medium enterprises (SMEs)
which depends on entrepreneurships, innovation and\or high flexibility to lean with new
situations and adopt with irregular circumstances in order to mitigate risks.

4.1.2 Attitudes of Respondents Toward Lockdown, Social Distancing and

Travelling Restrictions

Table 4 shows the attitude of respondents due to factors on Covid-19 which are lockdown,
social distancing and travelling restrictions. Most of the percentages are observing that
lockdown due to Covid-19 is affecting the restaurants number of orders. So about 98% of
restaurants have been affected with lockdown due to closure of their restaurants and their
number of orders are disrupted. In addition to the decreasing of purchases of raw materials
for restaurants because of the several lockdown decisions, and about 54% of restaurants have
been affected in current situations from purchasing raw material aspect that serve their
operations while 23% are not sure from that. Meanwhile, HR operations has been affected
because of lockdown that inhibited new vacancies for employment in percentage about 84%,
which means most of restaurants in Lebanon are freezing their HR operations because their
working days are decreased because of the lockdown and decreasing number of operations,
so the new vacancies in this sector are inhibited. Finally, and because of the lockdown
decisions due to Covid-19 pandemic has been affected all operation in restaurants, and about
89% of restaurants’ operations are affected because of their restaurants’ several closure.

31
Social distancing is another factor of Covid-19 pandemic crisis, which caused panic among
people who avoid gathering in restaurants and affected that affected restaurants revenues
about 84%. Moreover, 72% of restaurants’ expenses that are required to open a restaurant
with all its requirements have exceeded the returns because of the decreasing capacity of
customers and about 28% are not sure if expenses are exceeding restaurants’ returns. Finally,
decision of the ministry of health about reducing the percentage of customer capacity has
affected about 94% the restaurant’s revenues.

About 64% of managers has been affected with travelling restrictions due to Covid-19, which
lead to lower the number of their customers in restaurants, and about 36% of restaurants have
different opinions. And respondents' responses regarding travelling restrictions that have
affected tourism which has direct impact on restaurants’ revenues and inhibiting fresh money
from expatriates that contribute in serving restaurants sector, are approximately split equally
between those who are affected with shortage of tourists and those who are not.

Table 3 . Attitude of the respondents toward Lockdown, Social distancing and travelling
restrictions (%)
# Item Strongly Disagree Not sure Agree Strongly Mean SD
Disagree agree
Lockdown
1 Lock down due to
Covid-19 affects 57.8 .523
0 0 1.6 40.6 4.39
number of orders in
your restaurants.
2 Lock down due to
Covid-19 decreases
the purchases of 51.6
0 0 23.4 25.0 4.02 .701
raw materials
because of
restaurant closure.
3 HR operations has
been affected
because of
lockdown that 0 3.1 12.5 39.1 45.3 4.27 .802
inhibited new
vacancies for
employment.
4 Closure of your 0 0 67.2 21.9 .567
10.9 4.11
restaurant due to
the lock down has
disrupted all its

32
 operations.
Social Distancing
1 Because of
customers panic
from spreading of
the virus they avoid
gathering in 1.6 3.1 10.9 62.5 21.9 4.00 .777
restaurants that
affected the
revenues of your
restaurant.
2 Expenses that are
required to open a
restaurant with all
its requirements
45.3
exceeded the 0 1.6 26.6 26.6 3.97 .776
returns because of
the decreasing
capacity of
customers.
3 Decision of the
ministry of health to
reduce the
percentage of
0 0 6.3 51.6 42.2 4.36 .601
customer capacity
has adverse impact
on restaurant’s
revenues
Travelling Restrictions
1 Travelling
restrictions due to
Covid-19 lead to
1.6 7.8 26.6 50.0 14.1 3.67 .874
lower the number of
customers in your
restaurant.
2 Travelling
restrictions due to
Covid-19 affected
tourism which
prevent tourists to 0 21.9 18.8 37.5 21.9 3.59 1.065
visit hospitality
sectors generally
and restaurants
specifically.
3 Travelling
restrictions inhibit
fresh money from
3.1 4.7 31.3 54.7 6.3 3.56 .814
expatriates that
enhance service
sector.

33
As per crisis management, table 5 indicates pre-crisis management and during-crisis
management, so about 23.4% prepared very much such Covid-19 scenarios before the crisis,
and about 34.4 moderately prepared scenarios before the crisis, but about 42.2 % didn’t
prepare scenarios before the crisis or prepare slightly. Respondents are approximately split
equally between those who build team to engage managing a crisis and those who are not, in
addition to 40.6% slightly allocated reserved budget and 18.8% did not allocated reserved
budget at all and small percentage about 4.7 moderately allocate budget and about 36%
allocated reserved budget to face the crisis and minimize risks. Finally, about 67.2 % did not
extremely use to build a strategy to lean with the crisis while about 32.8% did.

While in during-crises management stage, and about 45.3% used to update regularly the plan
in order to account covid-19 current crisis, and about 32.8 moderately updated their plan, but
about 22% did not tens to do this action. Moreover, 43.8% make decision on time according
to the updated circumstances, 17.2% are moderately making decision on time, while about
39% of respondents slightly or did not make decisions on time according to the updated
circumstances. Furthermore, 40.6 % are very much embracing the crisis by communication
and building team mindset, and 21.9% are extremely communicating and build their team
mindset. And same percentage 15.6% of those who are moderately and slightly achieving this
action. Finally, 37.6% of respondents are well monitoring the crisis implications and
commitment of strategies has been set, and approximately the same percentage of
respondents who are slightly doing the monitoring action and 17.2% are moderately
monitoring the crisis implications and the commitment of the strategy has been set.

Table 4. The extent of engaging respondents with crisis management (pre and during crisis) (%)

34
# Item Not at Slightly Moderate Very Extremel Mean Standard
all much y Deviation
Pre-crisis Management
1 You prepared
such scenarios
before the 12.5 29.7 34.4 23.4 0 2.69 0.974
crisis.
2 You built a
prepared team
to engage 15.6 31.3 32.8 14.1 3.33 0.974
6.3
managing a
crisis.
3 You prepare
an allocated
reserved 18.8 40.6 4.7 21.9 14.1 2.72 1.374
budget for
such crisis.
4 You used to
build a
strategy to 7.8 26.6 32.8 25.0 7.8 2.98 1.076
lean with the
crisis.

During-crisis Management
1 You regularly
update the crisis
management plan 7.8 14.1 32.8 37.5 7.8 3.23 1.050
to account covid-
19 current crisis.
2 You are making
decisions on time
according to the 35.9 17.2 34.4 9.4 3.11 1.100
3.1
updated
circumstances.

3 You are embracing

the crisis by
communication 6.3 15.6 15.6 40.6 21.9 3.56 1.180
and building the
team mindset.
4 You’re monitoring
the crisis
implications and
the commitment 7.8 37.5 17.2 31.3 6.3 2.91 1.123
of strategies has
been set.

35
Concerning the responses of respondents against Covid-19 crisis, table 6 represents several
responses for restaurants with unevenly percentages. The first response is online
advertisement for restaurants. Social media is one of responses that belongs to online
advertisements, and about 72% of respondents have their own Facebook, Instagram
restaurant pages, and 15.6% are not sure if social media is a response for their restaurants and
12.5% are not activating social media as a response to their restaurants. As per paid
advertisement, 39.1% disagree this response and 26.6% strongly disagree the response of
paid advertisement. While about 25% of respondents are with this approach. Finally, the
highest percentage 76.6 % tends to contradict sponsored ads as a response while 23.4% agree
sponsored ads as an online advertisement response against covid-19 crisis.
Second, Sanitary procedures that most of restaurants commit this approach due to the current
situation about covid-19 pandemic, so about 85.9% of restaurants let employee to wear masks
as a response to gain customer trust and self-safety, and rare of employees did not and that
was about 14% only. In addition to make regular PCR tests in order to guarantee the safety of
employees who are the source of restaurants operations, so about 21.9% agree this response
while the same percentage did not at all. Furthermore, 53.1% of respondents are slightly and
not sure about doing regular PCR tests for employees. Third, concerning sterilization of
restaurants, 40.7% are with sterilization as a response against corona virus, in addition to
21.9% are not sure about sterilization, moreover 29.7% disagree and 7.8% of restaurants did
not sterilize their restaurants at all. Finally, 14.1% of respondents are testing clients fever on
entrance, and the same percentage 28.1% of respondents who agree and not sure of this
approach, nevertheless 29.7% are not testing clients fever.
Concerning the delivery services, responses of own delivery services respondents are split
equally between who are with own delivery services and who are not. Second, 72% which is
the dominating percentage for those who did not tend to hire new temporary delivery
employees and 28% are taking this decisions. 26.5% are contracting with third party delivery,
but 73.4% are sum of respondents that are not sure and did not recognize a third party
delivery service as a response.
As per the technological tools and digital services response, 32.2% are adopting online
ordering like Zomato, Uber Eats… while 57.8% are not. And about 62.6% of respondents
don’t have booking applications, and 37.5 % adopt this response in their restaurants. Finally,
virtual managerial meetings because of the current situation did not adopted in percentage of
68.7% while 31.3% have their virtual meetings for managerial reasons.

36
The final response of cost reduction includes reducing number of employees, and 40.6% of
restaurants minimize very much their employees’ number in addition to 12.5% of restaurants
have extremely goes to employees reduction, while 46.8% are not with reducing number of
employees. Second, 34.4% do not tend to cut off salaries, 15.6% are not sure of that. Third,
substituting ingredients with affordable ones 15.6% are with substituting, and 18.8% are not
sure, but 40.6% disagree substituting response. The final response of cost reduction is cutting
unnecessary costs, that 29.7% of restaurants cut unnecessary costs 23.4% are those
respondents that are not sure, while 26.6% disagree this response.

Table 5. Responses of restaurants against Covid-19 crisis (%)

# Responses Strongly Mean Standard
Disagree Not Agree Strongly Deviation
disagree sure Agree

RESPONSES, Online Advertisement

1 Facebook,
Instagram
restaurant pages 3.1 9.4 15.6 39.1 32.8 3.89 1.071

2 Paid
Advertisement 39.1 9.4 18.8 6.3 2.39 1.242
26.6

3 Sponsored Ads
23.4 46.9 6.3 23.4 0 2.30 1.079

RESPONSES, Sanitary procedures

1 Employee
wearing masks 0 3.1 10.9 32.8 53.1 4.36 0.804

2 Regular PCR
21.9 25.0 28.1 21.9 3.1 2.59 1.151

3 Sterilizations
7.8 29.7 21.9 18.8 21.9 3.17 1.292

4 Testing Client
Fever 14.1 15.6 28.1 28.1 14.1 3.13 1.254

RESPONSES, Delivery Services

37
 1 Own Delivery
Services 3.1 14.1 32.8 23.4 26.6 3.56 1.125

2 New Hiring
Delivery Staff 18.8 26.6 26.6 25.0 3.1 2.67 1.142

3 Third party
Delivery Services 25 35.9 12.5 15.6 10.9 2.52 1.321

RESPONSES, Technological tools & digital services

1 Online ordering
(Zomato, Uber
Eats...) 7.8 28.1 21.9 28.1 14.1 3.13 1.202

2 Booking Apps 26.6 26.6 9.4 34.4 3.1 2.61 1.292

3 Virtual
Managerial 12.5 23.4 32.8 26.6 4.7 2.88 1.091
Meeting

RESPONSES, Cost Reduction

1 Reducing number
of employees 15.6 20.3 10.9 40.6 12.5 3.14 1.320

2 Cut off Salaries 34.4 18.8 15.6 17.2 14.1 2.58 1.467
3 Substituting 9.4 40.6 18.8 15.6 15.6 2.88 1.254
4 Cutting
Unnecessary 1.6 25 23.4 20.3 29.7 3.52 1.208
Costs

Table 7 represents the restaurant survival which is measured by operations, revenues and
customers. 12.5% represent the percentage of restaurants that poorly survived their operations
and excellent survive. In addition to restaurants who are fairly operational survived is 29.7%,
furthermore 23.4% are good operational survived, moreover 21.9% is the percentage of
restaurants that are very good operational survived.
Concerning revenues, 35.9% are good survived and 29.7% are very good survived while only
1.6% of restaurants are excellent survived, in addition to 17.2% of restaurants have poor
revenues survival, and 15.6% is the percentage of restaurants which are fairly revenues
survived.

38
Finally, and from customer retention aspect 35% of restaurants are very good in retaining
customers and 25% have good customer survival, furthermore only 12.5% of restaurants are
excellent from the aspect of customers survival. Moreover 15.6% are poorly survived and
10.9% represents the percentage of restaurants that are fairly survived.
In conclusion, we can observe that restaurants are good in operations, revenues and customer
survival during Covid-19 pandemic crisis.

Table 6. Restaurants survival

# Item Poor Fair Good Very Excellent Mean Standard

good Deviation

1
Operational survival
12.5 29.7 23.4 21.9 12.5 2.92 1.238

2
Revenues survival
17.2 15.6 35.9 29.7 1.6 2.83 1.092

3
Customers survival
15.6 10.9 25 35 12.5 3.19 1.258

4.2 Testing Hypothesis

39
Hypothesis1: Lockdown due to Covid-19 pandemic has significant impact on
restaurants’ operations in Lebanon.

Pearson Correlation

Table 8 is the Pearson correlation among lockdown due Covid-19 (Number of orders,
purchases of raw materials, HR operations and all operations) and restaurants survival
indicates (Operational survival, Revenues Survival, Customers Survival).
Impact of Lockdown on decreasing number of orders is significant with the three survival
factors and has negative relationships between operations, revenues and customers retention.
Second, impact of lock down and decreasing of purchases of raw material is significant with
both factors of restaurants survival (revenues survival and customer’s survival) and has no
significant with operational survival, which means it has no direct impact on operations.
Third, concerning impact of lock down on disruption of HR operations, it has significance
with operational and revenues survival (less than 0.05) and is not significant with customer
survival that has not direct impact, and according to Pearson correlation, lock down and HR
operations are negatively related with restaurants survival. Finally, lock down and all
restaurants operations are negatively related with operational, revenues and customers
survival.

Table 7. The Correlation Coefficients among Lockdown and Restaurants Survival

Lockdown-
Lockdown- purchases Lockdown- lock down-
number of of raw HR all operational revenues customers
orders. materials operations operations survival survival survival

Lockdown Pearson
1 .373** .165 .282* -.491** -.548** -.499**
number of Correlation
orders. Sig. (2-
.002 .192 .024 .000 .000 .000
tailed)

N 64 64 64 64 64 64 64
Lockdown- Pearson
.373** 1 -.064 .515** -.218 -.370** -.381**
purchases of Correlation
raw Sig. (2-
.002 .616 .000 .084 .003 .002
materials tailed)
N 64 64 64 64 64 64 64

40
Lockdown- Pearson
.165 -.064 1 .110 -.379** -.273* -.192
HR Correlation
operations Sig. (2-
.192 .616 .388 .002 .029 .129
tailed)
N 64 64 64 64 64 64 64
lock down - Pearson
.282* .515** .110 1 -.169 -.405** -.363**
all Correlation
operations Sig. (2-
.024 .000 .388 .183 .001 .003
tailed)
N 64 64 64 64 64 64 64
operational Pearson
-.491** -.218 -.379** -.169 1 .729** .692**
survival Correlation
Sig. (2-
.000 .084 .002 .183 .000 .000
tailed)
N 64 64 64 64 64 64 64
revenues Pearson
-.548** -.370** -.273* -.405** .729** 1 .844**
survival Correlation
Sig. (2-
.000 .003 .029 .001 .000 .000
tailed)
N 64 64 64 64 64 64 64
customers Pearson
-.499** -.381** -.192 -.363** .692** .844** 1
survival Correlation

Sig. (2-
.000 .002 .129 .003 .000 .000
tailed)

N 64 64 64 64 64 64 64

**. Correlation is significant at the 0.01 level (2-tailed).

*. Correlation is significant at the 0.05 level (2-tailed).

We can also conduct the relationship between the independent variable “Lock down” with its
factors (Number of orders, purchases of raw materials, HR operations and all restaurant
operations) with the overall survival, and according to table 9, we can notice that all factors
of the independent variable “Lock down” is significant with the dependent variable Survival
at level 0.005, and are negatively related with the dependent variable.

41
 Table 8. Overall Correlations between Lock down and restaurants Survival

Lockdown- Lockdown- Lockdown-

number of purchases of raw HR lock down-all Restaurant
orders. materials operations operations Survival

Lockdown- Pearson
1 .373** .165 .282* -.559**
number of orders. Correlation

Sig. (2-tailed) .002 .192 .024 .000

N 64 64 64 64 64

Lockdown- Pearson
.373** 1 -.064 .515** -.352**
purchases of raw Correlation
materials Sig. (2-tailed) .002 .616 .000 .004

N 64 64 64 64 64

Lockdown- Pearson
.165 -.064 1 .110 -.308*
HR operations Correlation

Sig. (2-tailed) .192 .616 .388 .013

N 64 64 64 64 64

lock down-all Pearson

.282* .515** .110 1 -.338**
operations Correlation

Sig. (2-tailed) .024 .000 .388 .006

N 64 64 64 64 64
Survival Pearson
-.559** -.352** -.308* -.338** 1
Correlation

Sig. (2-tailed) .000 .004 .013 .006

N 64 64 64 64 64

**. Correlation is significant at the 0.01 level (2-tailed).

*. Correlation is significant at the 0.05 level (2-tailed).

Hypothesis2: Minimizing of customer capacity in restaurants due to social

distance has significant negative impact on revenues.

Pearson correlation

42
Pearson correlation among the independent variable Social Distance due Covid-19 (gathering
avoidance, Expenses due decreasing capacity of customers, customers reduction) and the
dependent variable Restaurants Survival indicates (Operational survival, Revenues Survival,
Customers Survival).
First of all, we can notice from table 10, that all of the independent variable factors are
negatively related with operational, revenues and customer’s retention survival. So whenever
social distancing will progress due to Covid-19 Pandemic crisis, then that will affect the
restaurants survival for the result of minimizing the capacity of customers in restaurants.
Then if we can come nearly for the significance, we can observe that expenses that are
required to open a restaurant with all its requirements exceeded the returns because of the
decreasing capacity of customers has significant (0.000) at the level of (0.05) with the three
factors restaurants survival. While the decision of the ministry of health to reduce the
percentage of customer capacity has adverse impact on restaurants revenues has no
significant with restaurants survival, that’s mean that there is no direct effect on it. While the
first inquiry which is because of customers panic from spreading the virus they avoid
gathering in restaurants that affected the revenues of restaurants, is significant with revenues
and customer survival whereas is not significant with the operational survival.

Table 9. The Correlation Coefficients among Social Distance and Restaurants Survival

Avoidance Reduction of
gathering in Restaurant customer operational revenues customers
restaurants Expenses capacity survival survival survival

Avoidance Pearson
1 .132 .272* -.066 -.262* -.227
gathering in Correlation
restaurants Sig. (2-
.300 .030 .604 .036 .071
tailed)

N 64 64 64 64 64 64
Restaurant Pearson
.132 1 .433** -.498** -.587** -.563**
Expenses Correlation
Sig. (2-
.300 .000 .000 .000 .000
tailed)

Reduction of Pearson
.272* .433** 1 -.111 -.195 -.112
customer Correlation
capacity. Sig. (2- .030 .000 .382 .123 .380
tailed)

43
 N 64 64 64 64 64 64
operational Pearson
-.066 -.498** -.111 1 .729** .692**
survival Correlation
Sig. (2-
.604 .000 .382 .000 .000
tailed)
N 64 64 64 64 64 64
revenues Pearson
-.262* -.587** -.195 .729** 1 .844**
survival Correlation
Sig. (2-
.036 .000 .123 .000 .000
tailed)
N 64 64 64 64 64 64
customers Pearson
-.227 -.563** -.112 .692** .844** 1
survival Correlation

Sig. (2-
.071 .000 .380 .000 .000
tailed)

N 64 64 64 64 64 64

*. Correlation is significant at the 0.05 level (2-tailed).

**. Correlation is significant at the 0.01 level (2-tailed).

In other way, we can notice from table 11, that also there is negative relationship between all
factors of social distance due to Covid-19 pandemic crisis on restaurants survival, which
mean Social distancing is the prior reason on reducing customers that will automatically will
affect revenues and operations. That’s why we can observe that Expenses that are required to
open a restaurant with all its requirements exceeded the returns because of the decreasing
capacity of customers is significant (0.000) at the level of (0.05) with overall restaurant
survival.

Table 10. overall correlation coefficient of Social Distance on Restaurants Survival

Avoidance Reduction of
gathering in Restaurant customer Restaurant
restaurants Expenses capacity Survival

44
Avoidance of gathering Pearson
1 .132 .272* -.199
in restaurants. Correlation

Sig. (2-tailed) .300 .030 .114

N 64 64 64 64

Restaurant Expenses Pearson

.132 1 .433** -.599**
Correlation
Sig. (2-tailed) .300 .000 .000

N 64 64 64 64

Reduction of customer Pearson

.272* .433** 1 -.150
capacity Correlation
Sig. (2-tailed) .030 .000 .238

N 64 64 64 64

Survival Pearson
-.199 -.599** -.150 1
Correlation

Sig. (2-tailed) .114 .000 .238

N 64 64 64 64

*. Correlation is significant at the 0.05 level (2-tailed).

**. Correlation is significant at the 0.01 level (2-tailed).

Hypothesis3: Travelling restrictions due preventing the spread of corona

virus has significant impact on restaurants’ customer retention

Pearson Correlation

In Pearson correlation among the independent variable Travelling Restrictions due Covid-19
(lowering customers Capacity, affected tourism, and expatriate fresh money) and the
dependent variable Restaurants Survival indicates (Operational survival, Revenues Survival,
Customers Survival). Table 12 shows that the first two factors of travelling restrictions are
negatively related with revenues, operations and customers survival, whereas the third factor
has weak positive correlation with restaurants survival. Travelling restrictions due to Covid-
19 lead to lower the number of customers in restaurants is significant with operational and

45
revenues survival, while it is not significant with customer retention survival. Additionally,
travelling restrictions due to Covid-19 affected tourism which prevent tourists to visit
hospitality sectors generally and restaurants specially, so this factor is significant with
operational survival which means it has direct negative relationship, in other hand it has no
significance with revenues and customer survival among 0.05 level. The third factor which is
travelling restrictions inhibit fresh money from expatriates that enhance service sector is an
assumption that has direct significance with customer retention survival, which means it
affects more on customers retention, while there is no significant between revenues and
operational survival.

Table 11. The Correlation Coefficient among Travelling Restriction on Restaurants Survival

Travelling Travelling
restrictions- Travelling restrictions-
Customer restrictions- Expatriates’ operational revenues customers
Number Tourists fresh money survival survival survival

Travelling Pearson
1 .571** .353** -.376** -.260* -.073
restrictions- Correlation
Customer Sig. (2-
.000 .004 .002 .038 .566
Number tailed)

N 64 64 64 64 64 64
Travelling Pearson
.571** 1 .414** -.494** -.143 -.120
restrictions- Correlation
Tourists Sig. (2-
.000 .001 .000 .260 .345
tailed)
N 64 64 64 64 64 64
Travelling Pearson
.353** .414** 1 .123 .200 .283*
restrictions- Correlation
Expatriates’ Sig. (2-
.004 .001 .333 .113 .024
fresh money. tailed)
N 64 64 64 64 64 64
operational Pearson
-.376** -.494** .123 1 .729** .692**
survival Correlation
Sig. (2-
.002 .000 .333 .000 .000
tailed)
N 64 64 64 64 64 64
revenues Pearson
-.260* -.143 .200 .729** 1 .844**
survival Correlation
Sig. (2- .038 .260 .113 .000 .000
tailed)

46
 N 64 64 64 64 64 64
customers Pearson
-.073 -.120 .283* .692** .844** 1
survival Correlation

Sig. (2-
.566 .345 .024 .000 .000
tailed)

N 64 64 64 64 64 64

**. Correlation is significant at the 0.01 level (2-tailed).

*. Correlation is significant at the 0.05 level (2-tailed).

In another of testing the correlation, we can notice, in table 13, The Correlation Coefficient
among Travelling Restriction on Restaurants Survival that there is negative relation between
first two factors of travelling restrictions and survival of restaurants, while the third factor has
very weak positive correlation.

Table 12. The Correlation Coefficient among Travelling Restriction on Restaurants Survival

Travelling Travelling
restrictions- Travelling restrictions-
Customer restrictions- Expatriates’ Restaurant
Number Tourists fresh money Survival

Travelling restrictions- Pearson Correlation 1 .571** .353** -.256*

Customer Number
Sig. (2-tailed) .000 .004 .041

N 64 64 64 64

Travelling restrictions- Pearson Correlation .571** 1 .414** -.280*

Tourists
Sig. (2-tailed) .000 .001 .025

N 64 64 64 64

Travelling restrictions- Pearson Correlation .353** .414** 1 .221

47
Expatriates’ fresh money. Sig. (2-tailed) .004 .001 .079

N 64 64 64 64

Survival Pearson Correlation -.256* -.280* .221 1

Sig. (2-tailed) .041 .025 .079

N 64 64 64 64

**. Correlation is significant at the 0.01 level (2-tailed).

*. Correlation is significant at the 0.05 level (2-tailed).

Hypothesis4: Pre-crisis management has significant impact on restaurants'

survival.

Pearson correlation

Table 14 represents the correlation coefficients among pre-crisis management indicators, and
overall restaurants survival.
Pearson correlation among pre-crisis management indicators (Prepared scenarios, prepared
team, allocated reserved budget and building strategy) and restaurants’ Survival variables
indicate that all factors have significant relationships with each other at (Alfa=0.01).
Moreover, it seems that preparing team to engage in managing the crisis has very strong
correlation over restaurants’ survival, which is essential in adopting with the crisis. In the
other hand, building a strategy in order to lead the implications of the crisis has also strong
correlation among restaurants survival, which is an important factor in pre-crisis
management. Allocated reserved budget and prepared such scenarios have also positive
correlation among restaurants survival. So, we can conclude that Pre-crisis management is a
stage that prepare restaurant in advance to any crisis.

Table 13. The Correlation Coefficients among Pre-crisis management and Restaurants Survival

Prepared Prepared Reserved Building Restaurants

Scenarios. team budget Strategy Survival

Prepared Scenarios Pearson

1 .557** .538** .480** .699**
Correlation

Sig. (2-tailed) .000 .000 .000 .000

N 64 64 64 64 64

48
Prepared team. Pearson
.557** 1 .619** .702** .847**
Correlation
Sig. (2-tailed) .000 .000 .000 .000

N 64 64 64 64 64

Reserved budget Pearson

.538** .619** 1 .448** .697**
Correlation
Sig. (2-tailed) .000 .000 .000 .000

N 64 64 64 64 64

Building Strategy Pearson

.480** .702** .448** 1 .796**
Correlation
Sig. (2-tailed) .000 .000 .000 .000

N 64 64 64 64 64

Restaurants Survival Pearson

.699** .847** .697** .796** 1
Correlation

Sig. (2-tailed) .000 .000 .000 .000

N 64 64 64 64 64

**. Correlation is significant at the 0.01 level (2-tailed).

Hypothesis5: During-crisis management has significant impact on leaning

with Covid-19 pandemic crisis.

Pearson correlation

Table 15 represents the correlation coefficient among During-crisis management factors

(update plan, Making decisions, communication and monitoring) and restaurants’ survival
indicates that all factors have significant relation with each other at (Alfa =0.01).
Communication and building team mindset has very strong positive correlation with
restaurants survival, in addition to updated plan and making decisions on time during a crisis
that have strong positive correlation over restaurants survival.

49
 Table 14. Correlation Coefficients of During-crisis management & Restaurant Survival

Communicatio
Updated crisis Making n and building
management decisions on the team Restaurant
plan time. mindset Survival

Updated crisis Pearson Correlation 1 .513 **

.750 **
.765**
management plan Sig. (2-tailed) .000 .000 .000

N 64 64 64 64
Making decisions on time Pearson Correlation .513** 1 .588** .715**
Sig. (2-tailed) .000 .000 .000

N 64 64 64 64

Communication and Pearson Correlation .750 **

.588 **
1 .854**
building the team Sig. (2-tailed) .000 .000 .000
mindset N 64 64 64 64

Restaurant Survival Pearson Correlation .765 **

.715 **
.854 **
1

Sig. (2-tailed) .000 .000 .000

N 64 64 64 64

**. Correlation is significant at the 0.01 level (2-tailed).

Hypothesis6: Covid-19 crisis affects adversely restaurants sector and crisis

management leads restaurants survival

Multiple Regression Analysis

The multiple regression analysis in table 18 examines the associations between the
independent variables represented by its indicators (Lockdown, Social Distance, Travelling
Restriction, pre-crisis management, during-crisis management) and the dependent variable
(Restaurant Survival). It shows a summarized result of the regression analysis.

As per the table, R=0.946 which indicate a very Strong positive correlation between impact
of COVID-19 variables (Lockdown, Social Distancing, Travelling Restrictions) and crisis
management stages (pre-crisis management and during crisis management) on dependent
variable Restaurants Survival. Thus, the (R 2=0.895) means that approximately 90% of the
50
proportion of variance in the Restaurants Survival is explained by (Lockdown, Social
Distancing, Travelling Restrictions, pre-crisis management and during-crisis management) as
independent variables. The Durbin-Watson (d=2.346), is approximately between the two
critical values of 1.5 and 2.5. Therefore, it is assumed that the data is not auto-correlated in
the regression. Moreover, the results of the ANOVA analysis indicate that the model was a
significant predictor of Restaurants Survival at level (0.05). The table also demonstrates the
estimated model coefficients. It includes the column of unstandardized coefficients that form
the equation to predict Restaurant Survival. The predicted equation:

Restaurants Survival = 12.908 (constant) – (0.302 x Travelling Restriction) – (0.781 x

Social Distancing) – (1.342 x Lockdown) + (0.692 x Pre-crisis management) + (0.297 x
During-crisis management).

As we can notice in table 16, as much as travelling restrictions increases by one unit, the
dependent variable (Restaurants Survival) will decreases by (0.302), and also when the
predictor variable social distancing will increases one unit, then the outcome variable
(restaurant Survival) will have adversely impacted by (0.781), additionally, for every one unit
increase in the predictor variable (lockdown), then Restaurants Survival will decrease by
(1.342). So they are negatively related with the dependent variable, and have adverse impact
on it. While we can notice that the beta coefficient is positive in the predictor (pre-crisis
management), so for every 1-unit increase in this predictor variable, the outcome variable
(Restaurants Survival) will increase by (0.692), the same result done with the predictor
variable (During-crisis management), for every 1-unit increase in predictor variable (During-
crisis management), then will be increased by (0.297) in Restaurant survival. So pre-crisis
management and During-crisis management are positively related with Restaurant survival as
a dependent variable.
Furthermore, the independent variable (Travelling Restrictions) is not significant at level
(0.05), so it has no direct impact on the dependent variable (Restaurant survival), and
Lockdown predictor is slightly not significant, mainly if we increase the sample size, then it
could be significant, while rest of independent variables are significant at level (0.05), so they
have direct impact on Restaurants Survival.

51
 Table 15. The Regression Analysis for the Impact of Covid-19 and Crisis Management on Restaurants Survival

Model Summary R R square Durbin-Watson

0.946 0.895 2.346
Unstandardized Standardized
Coefficients Coefficients

Model B Std. Error Beta t Sig.

1 (Constant) 2.173 .960 2.264 .027

Lockdown -.241 .139 -.091 -1.730 .089

Social Distancing -.215 .101 -.101 -2.130 .037

Travelling Restriction -.076 .066 -.051 -1.152 .254

Pre-crisis management .692 .110 .585 6.266 .000

During-crisis management .297 .104 .275 2.865 .006

a. Dependent Variable: Restaurants Survival

Hypothesis7: Restaurants’ survival depends on their responses against

Covid-19 crisis.

Cluster is a statistical method which divide a population into smaller groups known as
clusters.

64 respondents are classified into three cluster, each cluster represents cases different from
others which differentiate their responses due Covid-19 crisis. Table 17 represents three
clusters (a, b, c) and their number of cases.

52
Table 16. Number of cases in each cluster

Cluster A 21.000

B 17.000

C 26.000
Valid 64.000
Missing .000

This table 18 shows that there is significance difference between groups (a, b, c) in survival
mean. As we can notice that there is difference between three groups and have different cases
to show the different approaches to responses and recognize the best ones to rely on as a
restaurant facing COVID-19 crisis.

Table 17. Overall significance (Restaurants Survival)

Sum of Squares Df Mean Square F Sig.

Between Groups 52.942 2 26.471 72.206 .000

Within Groups 22.363 61 .367
Total 75.306 63

Table 19 represents the average of Cluster (c) 3.833 which is the larger mean that 26 cases
had been recorded, and have the best practices among other clusters, and have the best cases
of responses against Covid-19 crisis. Secondly, cluster (a) that recorded 21 cases of responses
has average 3.0635 which represents the moderate mean between the three clusters, and
shows the moderate responses and lead to temporary survival. Cluster (b) has the lowest
mean comparing with cluster (a) and (c), and the average of cluster (b) is 1.5686 this shows
that cluster (b) have the weakest responses which may lead to closure.
So we can conclude that responses that cluster (c) have depend on are the best practices done
against Covid-19 pandemic crisis.

53
 Table 18. Descriptive of cluster a, b, c (Restaurants Survival)

95% Confidence Interval for Mean

N Mean Std. Deviation Std. Error Lower Bound Upper Bound Minimum Maximum

a 21 3.0635 .52302 .11413 2.8254 3.3016 1.33 3.67

b 17 1.5686 .59820 .14508 1.2611 1.8762 1.00 3.67
c 26 3.8333 .66833 .13107 3.5634 4.1033 2.67 5.00
Total 64 2.9792 1.09331 .13666 2.7061 3.2523 1.00 5.00

Table 20 represents the responses range of three clusters, as we can notice that cluster (c)
recorded responses with high range that can be recorded as best practices which could stand
against a crisis and leaded to restaurants survival.so Cluster (c) can be considered as a best
group. And some of the responses of cluster (c) which are the best practices against Covid-19
pandemic crisis:

 Concerning online advertisement response, Social media (Facebook, Instagram

restaurants pages), was recorded the highest score (5). Paid ads that respondents in
cluster (c) has moderate reliable (3), and slightly reliable for paid for influencers
response (2).
 For Sanitary procedure response, Employee wearing masks, Regular PCR tests for
employees and Regular sterilization for the restaurant and Testing Clients fever has
highest score in cluster (c) as best practices, in contrast with cluster (b), the weakest
group regarding responses that has weak score for sanitary procedures.
 Regarding Delivery Services response, own delivery service the highest score of
responses (5), in addition to Hiring new temporary delivery staff, and slightly score
on contracting third party delivery service.
 For Technological and digital methods response, online ordering, Virtual
managerial meetings, have high score as a response, and slightly score in booking
apps. Comparing with group (b), that have slightly score recorded in virtual meetings
and online ordering responses.
 Concerning Cost reduction response, Reducing number of employees and cutting
unnecessary costs, two responses show high score (4) of responses, comparing with
group (b) that have slightly approaches to these two responses, additionally to cluster
(c) that has slightly approach to cut off salaries and Substituting raw materials with
lower costs materials, because if high response was recorded as group (b) then it
would adversely impact customers performance and food quality.

54
We can notice that these are the best practices that Restaurants in Lebanon have to depend on
in order to lean with and stand against Covid-19 crisis and such future crisis to rescue them
from strong losses and guarantee the survival of restaurants.

Table 19. Range of responses for three cluster

Cluster

a b c

19 RESPONSES Facebook, Instagram restaurant pages 4 3 5

19 RESPONSES paid for influencers 4 1 2
19 RESPONSES paid ads 2 2 3
20 RESPONSES Employee wearing masks 4 3 5
20 RESPONSES Regular PCR tests for employees 2 1 4
20 RESPONSES Regular sterilization for the restaurant 3 2 4
20 RESPONSES Testing Clients fever 3 2 4
21 RESPONSES Own Delivery services 3 3 5
21 RESPONSES Hiring new temporary delivery staff 3 1 4
21 RESPONSES Third party delivery service 4 2 2
22 RESPONSES Online ordering (Zomato, Uber Eats...) 3 2 4
22 RESPONSES Restaurants booking Apps 4 2 2
22 RESPONSES Virtual managerial meetings 2 2 4
23 RESPONSES Reducing number of employees 3 2 4
23 RESPONSES cut off salaries 3 4 2
23 RESPONSES Substituting raw materials with lower costs materials 3 4 2
23 RESPONSES Cutting unnecessary costs 3 2 4

CHAPTER FIVE

Finding and Discussion

5.1. Summary of the Results

After analyzing and interpreting the data obtained from restaurants in Lebanon and the
investigations used to test the hypotheses of this study on the basis of quantitative methods,
we can summarize the results as per the list below:

55
Covid-19 pandemic crisis has adverse impact on Restaurants survival, and in order to inhibit
the spread of this Virus, many factors occurs:

 Lockdown as a factor for Covid-19 pandemic crisis has adverse significant impact on
restaurants survival.
 Social distancing as Covid-19 crisis indicator has adverse significant impact on
restaurants survival.
 Travelling restrictions as an indicator for Covid-19 pandemic has no significant
impact on restaurants survival.
Crisis Management and its stages, is a trigger that enhance leaning with the Covid-19
pandemic crisis.

 Pre-crisis management as a stage before the crisis, has a significant impact on

restaurants survival.
 During-crisis management, as a stage when the crisis arises, has a significant impact
on restaurants survival.
Responses play big role on restaurants survival. Many responses are derived in order to adopt
Covid-19 pandemic crisis, and considered as best practices.

 Online advertisement, this study examines that existence of social media is essential
in restaurants during the crisis and should be highly focused, and have moderate
approach for advertisements paid by influencers, and slightly adoption for paid ads.
 Sanitary procedures, are responses that are highly considered as best practices
during Covid-19 crisis.
 Delivery services as own delivery service and hiring new temporary delivery staff are
reasonable responses, but hiring third party should be slightly taken into
consideration.
 Technological and digital methods, so online ordering and virtual managerial
meeting should be highly considered responses, while booking apps should be slightly
considered as a response.
 Cost reduction, so restaurants should reduce number of employees and cut
unnecessary costs in order to respond to restaurant losses, but cutting off salaries and
Substituting raw materials with lower costs materials should slightly take as responses
because if contradict actions were done, then the performance and quality of food will
decrease.

56
The hypotheses present the objective of our research, which is to find or investigate the
impact on restaurant survival of the Covid-19 pandemic crisis. And to what extent does crisis
management and best practices can mitigate risks and lean with the crisis. Those hypotheses
were tested by multiple regression and K-mean cluster.

5.2. Interpretation relevant to the literature review

A contrast is made in this section between the results of this report and the studies in the
literature review to demonstrate the similarities and discrepancies between these studies.
Each hypothesis would therefore be discussed separately.

1. As per pre-crisis management which has significant impact in enhancing leaning with
the crisis in resiliency and flexibility, so Alves, Jose C & Lok (2020) have also found
that before the outbreak, certain small enterprises had a structured crisis plan and
strategy, and these organizations appear to have a longer background, crisis
management expertise, and operate in more controlled sectors. And as crisis
management is an ongoing process, continuous improvement will minimize the risk of
the next crisis by integrating lessons learned. Also Jack Lai, Zainal Abidin & Hasni
(2020) finds that from a practical perspective, this paper's outcomes will urge
managers to develop effective contingency plans better and allocate funds to reduce
the impact of such a crisis.
2. As per during-crisis management hypothesis, which has a significant with restaurant
survival in our study, and having communication and updating plans in order to
mitigate risks of the crisis. These findings matches with lots of previous studies, so
Dun (2020) finds that is the time to refresh and revise existing emergency
contingency plan to prepare for and mitigate against these risks, and to exercise
leadership, to communicate with stakeholders clearly and transparently, to build trust,
and to continue to take and plan for concrete actions by identifying steps to protect the
safety of their employees, ensure business continuity, and minimize losses caused by
operational and supply chain disruption.
3. For responses which are triggers to lean with Covid-19 and rescue restaurants from
vulnerable positions, as technological methods and delivery services, so De Frietas &
Stedefelt (2020) find this building of resilience is focused on the application of safe
practices in the receipt, storage, processing, packaging, transporting and

57
 delivering meals; welcoming customers in restaurants; and maintaining safer working
conditions for all employees, whether they are kitchen workers, managers, cleaners,
waiters, or delivery drivers. It is essential that all staff members are involved in food
safety decisions.
4. Also as we mentioned above about importance of training team to engage in
managing the crisis that have significant impact on survival of restaurants, Dabbaage
(2020) In light of his findings of the study, restaurants managers need to pay attention
to training decision-makers in the decision-making process in times of crisis, as well
as increasing their awareness of the factors affecting crisis decision-making, as well
as training them on proactive thinking to save time, effort and money and reduce
severe consequences of crises.
5. Covid-19 crisis has adverse significant impact on small and medium businesses as we
mentioned, so W. Bartik, Bertrand & Cullen (2020), have finding where that COVID-
19 crisis is a once-in-a-generation crisis for small businesses in America, especially
those specializing in face-to-face service, so one fifth of America's retail, leisure and
hospitality workers are especially vulnerable to the current pandemic in these
industries.

5.3. Conclusion

Covid-19 pandemic crisis has impact on organizations persistence and on restaurants sectors
specifically which some of those restaurants are in vulnerable positions. Covid-19 crisis
affects adversely restaurants sector and crisis management is the management that manage
the crisis before, during and after the crisis that might guarantee restaurants survival.
Restaurants respond to the crisis by conducting best practices in order to lean with the Covid-
19 crisis in order to rescue their operations, revenues and customer retention. Covid-19 with
its factors (Lockdown, social distancing, and travelling restrictions) have adverse significant
impact on restaurants survival. This study examines that pre-crisis management which
includes allocating reserved budget for such crisis, drawing scenarios, planning and preparing
trained team to engage in managing the crisis are triggers that can mitigate risks and the
implications of Covid-19 crisis. Additionally, during-crisis management which is updating
the plan according to the updated circumstances beside building team mindset and monitoring
the strategy has been set. Many responses are derived in order to face this pandemic and

58
considered as best practices to respond and adopt with Covid-19 crisis. These hypotheses are
tested after collecting data by conducting a survey across restaurants’ managers in Lebanon
and examining the best practices done in order to face and have operational, revenues and
customer retention survival. So we can conclude that there many responses that enhance
leaning with the crisis like online advertisement, sanitary procedures, relying on delivery
services, technological and digital methods and cost reduction. So finally we can conclude
that crisis is unplanned issue that would happen without permission, and crisis management is
essential management to mitigate risks and crisis implications. And restaurants have to follow
the best practices to face such crisis.

5.4. Recommendations

The following recommendations are designed on the basis of the study findings.

 Organizations must give high focusing regarding crisis management to mitigate crisis
implications.
 Pre-crisis management stage is an essential stage to be well prepared to inevitable
crisis.
 Organizations have to build strategies, prepare their teams and allocate reserved
budgets in order to be well prepared for any crisis may happen.
 During-crisis management is as respond to current situations and surrounded
circumstances.
 Firms must manage the crisis when it arises by communication and building their
team mindset, having up-to-date plans in addition to make decisions on time
according to the situation.
 Restaurants managers must commit with specific responses and specific ranges which
are considered as best practices in order to lean with the crisis.
 Restaurants managers have to take into considerations online advertisement as a
response, sterilizing procedures, delivery services, technological methods and making
convenient and studied cost reduction to survive their restaurants continuity.

59
5.5. Study Limitations

Our study faced many limitations can be listed as follow:

 The first drawback is that the data collected depended on a very limited sample size
and, thus, it is not possible to generalize the findings for the whole country. In order
to have a more accurate statistical results, there is a need to perform similar surveys at
other restaurants in Lebanon.
 Secondly, the way has been used to collect data is obtained by questionnaire, which is
an approach that does not always provide correct answers and represents the
participants' true responses. If interviews were used in data collection, a more detailed
image would have been collected. However, this option has been canceled due to
COVID-19 and social distancing.
 Revenues were not given by restaurants managers because they don’t detect their
financial data, so we were obliged to do liker scale to measure revenues scale.

5.6. Suggestions for future research

In our study we examine the benefits of crisis management before and within the Covid-19
pandemic crisis. Therefore, future researchers have to investigate and study the post-crisis
management for Covid-19 crisis, and the way companies have to act after the crisis to return
back as they were and to make recovering actions to continue and progress.

60
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 APPENDICES

Appendix A: Questionnaire

As part of an educational management review, this survey was created. All responses are
anonymous; no piece of data will therefore be used for personal solicitation purposes. The
goal of this approach is to gather information to identify the impact of COVID-19 on Firms’
life cycle and the way restaurants withstand crisis management and responses. Thank you for
your responding my questionnaire

1. Lock down due to Covid-19 affects number of orders in your restaurants.

1) Strongly Disagree
2) Disagree
3) Not sure
4) Agree
5) Strongly Agree

2. Lock down due to Covid-19 decreases the purchases of raw materials because of
restaurant closure.

1) Strongly Disagree
2) Disagree
3) Not Sure
4) Agree
5) Strongly Agree

3. HR operations has been affected because of lockdown that inhibited new vacancies
for employment.

1) Strongly Disagree
2) Disagree
3) Not sure
4) Agree
5) Strongly Agree

4. Closure of your restaurant due to the lock down has disrupted all its operations.

1) Strongly Disagree
2) Disagree
3) Not sure
63
 4) Agree
5) Strongly Agree

5. Because of customers panic from spreading of the virus they avoid gathering in
restaurants that affected the revenues of your restaurant.

1) Strongly Disagree
2) Disagree
3) Not sure
4) Agree
5) Strongly Agree

6. Expenses that are required to open a restaurant with all its requirements exceeded the
returns because of the decreasing capacity of customers.

1) Strongly Disagree
2) Disagree
3) Not sure
4) Agree
5) Strongly Agree

7. Decision of the ministry of health to reduce the percentage of customer capacity has
adverse impact on restaurant’s revenues.

1) Strongly Disagree
2) Disagree
3) Not sure
4) Agree
5) Strongly Agree

8. Travelling restrictions due to Covid-19 lead to lower the number of customers in your
restaurant

1) Strongly Disagree
2) Disagree
3) Not sure
4) Agree
5) Strongly Agree

9. Travelling restrictions due to Covid-19 affected tourism which prevent tourists to visit
hospitality sectors generally and restaurants specifically.

1) Strongly Disagree

64
 2) Disagree
3) Not sure
4) Agree
5) Strongly Agree

10. Travelling restrictions inhibit fresh money from expatriates that enhance service
sector.

1) Strongly Disagree
2) Disagree
3) Not sure
4) Agree
5) Strongly Agree

11. You prepared such scenarios before the crisis.

1) Not at all prepared

2) Slightly Prepared
3) Moderate Prepared
4) Very much Prepared
5) Extremely Prepared

12. You built a prepared team to engage managing a crisis.

1) Not at all prepared

2) Slightly Prepared
3) Moderate Prepared
4) Very much Prepared
5) Extremely Prepared

13. You prepare an allocated reserved budget for such crisis.

1) Not at all allocated

2) Slightly allocated
3) Moderate allocated
4) Very much allocated
5) Extremely allocated

14. You used to build a strategy to lean with the crisis.

1) Not at all
2) Slightly used

65
 3) Moderate used
4) Very much used
5) Extremely used

15. You regularly update the crisis management plan to account covid-19 current crisis.

1) Not at all
2) Slightly used
3) Moderate used
4) Very much used
5) Extremely used

16. You are making decisions on time according to the updated circumstances.

1) Not at all
2) Slightly
3) Moderate
4) Very much
5) Extremely

17. You are embracing the crisis by communication and building the team mindset.

1) Not at all
2) Slightly communicating
3) Moderate communicating
4) Very much communicating
5) Extremely communicating

18. You’re monitoring the crisis implications and the commitment of strategies has been
set.

1) Not at all
2) Slightly monitoring
3) Moderate monitoring
4) Very much monitoring
5) Extremely monitoring

19. To what extent your restaurant is relying on these responses to face Covid-19
pandemic crisis?

66
20. Online Advertisement
1. Facebook, Instagram restaurant pages

1) Not at all
2) Slightly
3) Moderate
4) Very much
5) Extremely

2. Paid advertisement by influencers

1) Not at all
2) Slightly
3) Moderate
4) Very much
5) Extremely

3. Sponsored ads

1) Not at all
2) Slightly
3) Moderate
4) Very much
5) Extremely

21. Sanitary procedures

1. Employee wearing masks

1) Not at all
2) Slightly
3) Moderate
4) Very much
5) Extremely

2. Regular PCR tests for employees

1) Not at all
2) Slightly

67
 3) Moderate
4) Very much
5) Extremely

3. Regular sterilization for the restaurant

1) Not at all
2) Slightly
3) Moderate
4) Very much
5) Extremely

4. Testing Clients fever

1) Not at all
2) Slightly
3) Moderate
4) Very much
5) Extremely

22. Delivery Services

1. Own Delivery services

1) Not at all
2) Slightly
3) Moderate
4) Very much
5) Extremely

2. Hiring new temporary delivery staff

1) Not at all
2) Slightly
3) Moderate
4) Very much
5) Extremely

3. Third party delivery service

1) Not at all

68
 2) Slightly
3) Moderate
4) Very much
5) Extremely

23. Technological tools & digital services

1. Online ordering (Zomato, Uber Eats...)

1) Not at all
2) Slightly
3) Moderate
4) Very much
5) Extremely

2. Restaurants booking Apps

1) Not at all
2) Slightly
3) Moderate
4) Very much
5) Extremely

3. Virtual managerial meetings

1) Not at all
2) Slightly
3) Moderate
4) Very much
5) Extremely

24. Cost Reduction

1. Reducing number of employees

1) Not at all
2) Slightly
3) Moderate
4) Very much
5) Extremely

69
 2. Cut off salaries

1) Not at all
2) Slightly
3) Moderate
4) Very much
5) Extremely

3. Substituting raw materials with lower costs materials

1) Not at all
2) Slightly
3) Moderate
4) Very much
5) Extremely

4. Cutting unnecessary costs

1) Not at all
2) Slightly
3) Moderate
4) Very much
5) Extremely

25. To what extent do you retain and recover your restaurant's operations, revenues and
customers:

Survival / Range Poor Fair Good Very Good Excellent

Operations

Revenues

Customers

70
Appendix B: Chronbach Test

Table 20. Chronbach test if Item-Total Statistics

Cronbach's
Scale Mean if Scale Variance Corrected Item- Alpha if Item
Item Deleted if Item Deleted Total Correlation Deleted

Lockdown-number of orders 120.31 300.663 -.567 .875

Lockdown-purchases of raw
120.69 301.202 -.453 .876
materials
Lockdown-HR operations 120.44 297.806 -.282 .875
Lockdown-all operations 120.59 298.880 -.436 .874
Social distancing-Revenues 120.70 294.879 -.181 .873
Customer capacity-Returns 120.73 306.865 -.618 .879
Customer capacity-
120.34 292.451 -.105 .871
Revenues
Travelling restrictions-
121.03 293.618 -.124 .873
Customer Nb
Travelling restrictions-
121.11 294.639 -.140 .875
tourists
Travelling restrictions-
121.14 281.869 .297 .866
service sector
Prepared Scenarios. 122.02 269.635 .628 .860
Prepared team 121.38 260.333 .821 .855
Reserved budget 121.98 255.730 .752 .855
Strategy 121.72 264.904 .702 .858
Updated Plan 121.47 264.126 .745 .857
Making decisions 121.59 266.848 .629 .859
Communication 121.14 256.662 .862 .853
Monitoring 121.80 261.656 .764 .856
Social media 120.81 266.917 .646 .859
Paid Advertisement 122.31 283.679 .130 .871
Sponsored Ads 122.41 268.912 .582 .860
Wearing Masks 120.34 268.737 .807 .858
Regular PCR 122.11 257.401 .865 .854
Sterilizations 121.53 255.936 .800 .854
Testing Client Fever 121.58 258.724 .753 .855
Own Delivery Services 121.14 261.615 .763 .856
New Hiring Delivery Staff 122.03 262.793 .718 .857
Third party Delivery Services 122.19 299.012 -.221 .879
Online Ordering 121.58 259.041 .780 .855

71
Booking Apps 122.09 299.483 -.235 .879
Virtual Managerial Meeting 121.83 263.573 .731 .857
Reducing Employee Number 121.56 259.044 .703 .856
Cut off Salaries 122.13 330.365 -.785 .895
Substituting 121.83 319.256 -.674 .888
Cutting Unnecessary Costs 121.19 257.806 .809 .854
operational survival 121.78 259.253 .749 .856
revenues survival 121.88 260.079 .834 .855
customers survival 121.52 254.190 .869 .852

72