Uncertainty risks and strategic reaction of restaurant firms amid COVID-19: Evidence from China

To contain the pandemic of coronavirus (COVID-19), social distancing, self-isolation and travel restrictions have been imposed globally. To shed light on how COVID-19 is affecting restaurant industry, this study aims to explore the factors that affect restaurant firms’ financial turnaround for their sustainability after the business shutdowns amid the COVID-19 pandemic. By utilizing a total of 86,507 small- and medium-sized restaurant firms’ sales data collected from nine cities in Mainland China, the exploratory approach of this study successfully determines positive impacts of three aspects of operational characteristics (i.e., delivery, discounts, and service type) and brand effects as uncertainty minimizing factors amid distinctive business shutdowns and restrictions. This is the first empirical study in the management realm on the impacts of COVID-19 on restaurant industry. This paper strengthens the extant literature by highlighting the impact of COVID-19 on the restaurant industry after the business restrictions are lifted.     

An examination of restaurant employees’ work-life outlook: The influence of support systems during COVID-19

The main objective of this research paper is to examine the influence of perceived support (i.e., organizational support and social support) on life satisfaction (i.e., current and anticipated life satisfaction), which is hypothesized to increase restaurant employees’ loyalty organizational citizenship behavior (OCB) and decrease their intentions to leave the restaurant industry during the COVID-19 pandemic. Moreover, the moderating effects of employees’ resilience and employment status are also examined. Analyzing the responses of 609 restaurant employees using structural equation modeling (SEM), findings revealed that all direct effects were supported, except for the effect of anticipated life satisfaction on intention to leave the restaurant industry. Lastly, the moderating role of resilience in the relationships between current life satisfaction and restaurant employees’ loyalty OCB and intentions to leave the industry was confirmed. Theoretical and practical implications are discussed in detail.     

The role of business model innovation in the hospitality industry during the COVID-19 crisis

The hospitality industry worldwide is among the hardest-hit industries from the COVID-19 lockdowns. Initial theoretical and practical observations in the hospitality industry indicate that business model innovation (BMI) might be a solution to recover from and successfully cope with the COVID-19 crisis. Interestingly, some firms in the hospitality industry already started to successfully adapt their business models. This study explores the why and how of these successful recovery attempts through BMI by conducting a multiple case study of six hospitality firms in Austria. We rely on interview data from managers together with one of their main stammgasts for each case, which we triangulate with secondary data for the analysis. Findings show that BMI is applied during and after the crisis to create new revenue streams and secure a higher level of liquidity, with an important role of stammgasts.     

Tourism operator mental health and its relationship with SME organisational resilience during disasters

Crises have a negative, and often long-lasting impact on mental health. The stress of dealing with the ongoing and unpredictable aspects of the COVID-19 pandemic has led to an unprecedented rise in mental health problems including low mood, depression and anxiety. Tourism businesses have faced ongoing challenges, with repeated lockdowns and drastically reduced tourist numbers and mental health challenges faced by operators may impact the resilience of tourism organisations and vice versa. Few studies have examined this. Our study in Victoria, Australia documents the mental health impacts of the COVID-19 crisis on owners and managers (operators) of small to medium tourism businesses and explores organisational factors that may impact or protect operator mental health during the crisis. Our findings show that the mental health of the cohort reached critically low levels over the course of the pandemic. We also identify positive associations between tourism organisational resilience and operator mental health.     

Entrepreneurial motives and characteristics: An analysis of small restaurant owners

The purpose of this study was to gain information about the characteristics of small restaurant owners in China. The data for the study were hand-collected by survey questionnaires in four cities across three provinces in China. We found three main results. First, small restaurant entrepreneurs were characterized by one of three distinct motives in that they were autonomy seekers, family protectors, or profit seekers. Second, their funding sources were predominantly private rather than institutional. And third, the entrepreneurial business was the main source of the family's income. These findings have implications for development programs, financing, and education in developing China's restaurant industry. This study appears to be the first to investigate empirically entrepreneurial activity among small business owners in the Chinese restaurant industry.     

Hospitality workers’ COVID-19 risk perception and depression: A contingent model based on transactional theory of stress model

The hospitality industry worldwide is suffering under the COVID-19 pandemic. Drawing on the transactional theory of stress and coping, this study aims to investigate when hospitality workers’ COVID-19 risk perception affects their likelihood of having depressive symptoms. Using data from 211 hospitality workers in 76 hotels in Peru, we examined the effects of perceived COVID-19 risk on the likelihood of experiencing depressive symptoms. We posited that this relationship is moderated by the workers’ environment at work (job satisfaction) and at home (the number of children). The results indicate that job satisfaction weakens the link between hospitality workers’ COVID-19 risk perception and their likelihood of depressive symptoms while the number of children exacerbates this link. We discuss the implications of our findings for research on COVID-19 risk perception and offer practical implications for hospitality workers under COVID-19 crisis.     

Innovation,entrepreneurship, and restaurant performance: A higher-order structural model

Drawing on theories from hospitality, innovation, and entrepreneurship, this study examines a higher-order structural model investigating business innovation, the owners' entrepreneurial self-efficacy (ESE), and human capital as drivers of restaurant performance. The theoretically derived model was tested on data from 198 café and restaurant owners in Australia. The PLS-SEM analysis found restaurant innovation activities and the owner's ESE to positively influence restaurant performance. Furthermore, the six ESE dimensions had varying effects on restaurant performance, with ‘Developing new product and market opportunities’ having the strongest effect. In contrast, the entrepreneur's ‘human capital’, representing their levels of business ownership experience and entrepreneurship/industry education, did not significantly affect restaurant performance. However, human capital indirectly affected performance through innovation and ESE. The findings of this study advance theories in restaurant entrepreneurship and performance and present important implications for industry authorities to develop a successful and sustainable restaurant sector.     

Resilience to crises of Thai MICE stakeholders: A longitudinal study of the destination image of Thailand as a MICE destination

The COVID-19 outbreak has changed rapidly the business operation and travel behavior of global communities and calls for research on resilience. This study aims to identify the changing destination image of Thailand as a MICE destination during crises and examine the resilience of Thai MICE stakeholders. A mixed method of qualitative and quantitative design was employed using interviews, observations and questionnaire surveys. A longitudinal study of Thai MICE stakeholders during 14 years revealed that the Buddhist concepts of resilience and Thainess contribute to psychological resilience. Buddhism and Thainess cultivate the concept of crisis concierge. Surveys showed unchanged image of exhibition facilities during the political instability. Thailand's incentive travel benefits from the availability of bleisure (a combination of business and leisure) attractions. Good value for money, Thai hospitality, bleisure attractions, and international standard venues are key resilient factors.     

Do mindfulness and perceived organizational support work? Fear of COVID-19 on restaurant frontline employees’ job insecurity and emotional exhaustion

The coronavirus disease (COVID-19) outbreak has impacted the restaurant industry tremendously. Building on the Conservation of Resources Theory, the current study investigates the relationships among U.S. restaurant frontline employees’ fear of COVID-19, job insecurity, and emotional exhaustion. The study also examines the moderating role of employee mindfulness and perceived organizational support. SPSS PROCESS macro was used for hypotheses testing. Results suggested that restaurant frontline employees’ fear of COVID-19 was positively associated with both job insecurity and emotional exhaustion. Fear of COVID-19 had an indirect effect on restaurant frontline employees’ emotional exhaustion via job insecurity. Employee mindfulness buffered the positive relationship between fear of COVID-19 and job insecurity. Perceived organizational support was found to intensify the positive relationship between job insecurity and frontline employees’ emotional exhaustion. The research provided useful human resource management practices for U.S. restaurant businesses amid crises such as COVID-19.     

Creating a safe haven during the crisis: How organizations can achieve deep compliance with COVID-19 safety measures in the hospitality industry

The COVID-19 health crisis has engendered a set of additional health and safety regulations and procedures (e.g. social distancing) to the hospitality industry. The purpose of this paper is to explore in-depth how organizations can facilitate employees’ deep compliance with these procedures. Employing an instrumental case-study approach, we collected multi-level interview data and archival data in a small-medium sized restaurant in China. The findings reveal that employees’ deep compliance with safety procedures includes a four-stage psychological process, and this process is underpinned by both management safety practices and organizational crisis strategies. As the hospitality industry starts to exit lockdown and ramp up operations, this study offers theoretical and practical insights on how organizations in hospitality can protect the health and safety of their employees and the broader community.     

Restaurants and COVID-19: What are consumers’ risk perceptions about restaurant food and its packaging during the pandemic?

The COVID-19 pandemic and subsequent U.S. in-restaurant dining restrictions deleteriously affected the restaurant industry. While dining restrictions were adopted to prevent human contact, evidence suggests that consumers may mistakenly perceive that restaurant "food" and its "packaging" are risky sources of COVID-19. To explore consumers' COVID-19 risk perceptions about food itself, restaurant food specifically, and restaurant food packaging, this study collected nationwide U.S. consumer survey data (n = 958) using an online consumer panel. Findings showed that: (1) consumers were less concerned about contracting COVID-19 from food in general than restaurant food and its packaging, with consumer restaurant concern highest for food served in restaurants, and lowest for hot/cooked restaurant food followed by restaurant food from carry-out; and (2) the risk perceptions of consumers varied with financial concern for food, gender, and being in a high-risk category of COVID-19. Implications for researchers, restauranteurs, government, and food safety professionals are discussed.     

The coevolutionary process of restaurant CSR in the time of mega disruption

This study investigates how US foodservice conglomerates have embarked on corporate social responsibility (CSR) measures to circumvent dire situations during the COVID-19 pandemic. It explores the evolution of CSR practices from restaurant enterprises to rescue and salvage their stakeholders. By analyzing press releases from ten restaurant chains in three different crisis phases (incubation, acceleration, and climax) through corpus linguistics, we identify a CSR progression mechanism that coevolves with the aftermath of the crisis among their stakeholders. This study improvises the CSR- as-process view to highlight the time-variant dynamic nature of CSR development over the course of major disruption.     

Covid-19 and small lodging establishments: A break-even calibration analysis (CBA) model

The COVID-19 pandemic foiled the hospitality industry offering no clear insight as to what to expect regarding the emergence of possible new industry standards as likely corollaries of the pandemic. The accommodation sector is one of the most affected sectors in the hospitality industry, especially small lodging establishments incurring the most dramatic brunt of the pandemic’s long-tail effects. This study employed a breakeven (BC) analysis to examine the pandemic's opportunity cost and the financial resilience efforts that SLEs should undertake to bounce back or bounce forward. The case study centers on the Superior Small Lodgings (SSL) of Florida, USA. The results suggest that the opportunity cost varies depending on the SLE profiles, and hence resilience approaches should consider heterogeneous business responses.     

COVID-19, aftermath,impacts, and hospitality firms: An international perspective

Drawing on the theory of resilience, and on an international sample of 45 predominantly small hospitality businesses, this exploratory study extends knowledge about the key concerns, ways of coping, and the changes and adjustments undertaken by these firms’ owners and managers during the COVID-19 outbreak. The various emergent relationships between the findings and the considered conceptual underpinnings of the literature on resilience, revealed nine theoretical dimensions. These dimensions critically illuminate and extend understanding concerning the actions and alternatives owners-managers resorted to when confronted with an extreme context. For instance, with financial impacts and uncertainty being predominant issues among participants, over one-third indicated actioning alternative measures to create much-needed revenue streams, and preparing for a new post-COVID-19 operational regime, respectively. Furthermore, 60 percent recognised making changes to the day-to-day running of the business to respond to initial impacts, or biding time in anticipation of a changing business and legal environment.     

Responses to COVID-19: The role of performance in the relationship between small hospitality enterprises’ resilience and sustainable tourism development

Tourism is one of the hardest-hit industries by the global pandemic of Novel Coronavirus (COVID-19). Small tourism enterprises have been heavily affected and have had difficulty in business recovery. This research is an early attempt to explore the direct impact of small hospitality enterprises’ resilience on sustainable tourism development as well as indirect impact through performance. A pre-tested questionnaire survey was self-administered to owner-managers of small hospitality enterprises in Greater Cairo, Egypt. The results of structural equation modeling (SEM) using AMOS showed a positive, direct, and significant impact of resilience (planned and adaptive) on sustainable tourism development and indirect influence through performance. The results of the multi-group analysis showed that enterprise type has a significant effect on the results, where restaurant owner-managers expressed more resilience than their hotel counterparts. Several theoretical (for scholars) and practical implications for tourism policy-makers and owner-managers have been discussed and elaborated.     

Comparative study of deep learning models for analyzing online restaurant reviews in the era of the COVID-19 pandemic

Online reviews remain important during the COVID-19 pandemic as they help customers make safe dining decisions. To help restaurants better understand customers’ needs and sustain their business under current circumstance, this study extracts restaurant features that are cared for by customers in current circumstance. This study also introduces deep learning methods to examine customers’ opinions about restaurant features and to detect reviews with mismatched ratings. By analyzing 112,412 restaurant reviews posted during January-June 2020 on Yelp.com, four frequently mentioned restaurant features (e.g., service, food, place, and experience) along with their associated sentiment scores were identified. Findings also show that deep learning algorithms (i.e., Bidirectional LSTM and Simple Embedding + Average Pooling) outperform traditional machine learning algorithms in sentiment classification and review rating prediction. This study strengthens the extant literature by empirically analyzing restaurant reviews posted during the COVID-19 pandemic and discovering suitable deep learning algorithms for different text mining tasks.     

Reviving tourism industry post-COVID-19: A resilience-based framework

The COVID-19 pandemic struck the tourism industry severely. Based on the review of 35 papers that studied the tourism industry in the wake of the pandemic, we propose a resilience-based framework for reviving the global tourism industry post-COVID-19. Our framework outlines four prominent factors for building resilience in the industry: government response, technology innovation, local belongingness, and consumer and employee confidence. We argue that using such inclusive resilience; the tourism industry may transform into a new global economic order characterized by sustainable tourism, society's well-being, climate action, and the involvement of local communities. We also offer directions for future research in the area.     

Impact of the COVID-19 pandemic: Evidence from the U.S. restaurant industry

The current study examines how the effect of COVID-19 on U.S. restaurant firms’ stock returns varies according to the firms’ pre-pandemic characteristics by employing three firm-level dimensions (financial conditions, corporate strategies, and ownership structure). Employing 795 firm-year observations obtained from annual reports and other databases, this study found that restaurant firms with past characteristics of larger size, more leverage, more cash flows, less ROA, and more internationalization are more resilient to stock declines reacting to COVID-19 than otherwise similar firms. Whereas, dividend, franchising, institutional ownership, and managerial ownership did not show any significant moderating effect on the relationship between COVID-19 and stock returns. This study sheds light on the research topic by providing insights into drivers of restaurant firm’s stock returns during the COVID-19 shock. Future studies can employ the variables and method used in the current study to extend the understanding of the issue.     

The gloom of the COVID-19 shock in the hospitality industry: A study of consumer risk perception and adaptive belief in the dark cloud of a pandemic

As the new coronavirus (COVID-19) spreads globally, the hospitality industry is at the heart of implementing social distancing, a measure demonstrated to be effective in flattening the epidemic curve. Informed by the perceived risk theory, this research examines how the customer’s perception of the shock of the coronavirus pandemic impacts on their beliefs, and how their beliefs could influence their anticipated emotions (negative and positive) which could affect their future desire towards visiting restaurants. Structural equation modelling was used to understand the research constructs’ associations. This study provides two key suggestions: (i) that the hospitality industry is built on trust from their customers by supporting and resourcing consumers’ self-protection behaviour and adoptive belief, and (ii) that the economic influence and the continuous uncertainty and transformation of the restaurant business need the enhancement of localisation strategies, practices and performance.     

Customers’ risk perception and dine-out motivation during a pandemic: Insight for the restaurant industry

The restaurant industry is one of the most affected businesses during the outbreak of COVID-19. The customer choice regarding whether or not to dine in a restaurant have changed due to this unprecedented global pandemic. Integrated with the affective decision-making framework, meta-theoretic model of motivation (3M), and optimistic bias theory, this conceptual paper proposes a theoretical scheme for understanding constructs that affect consumer motivation while considering the significance of consumers’ risk perceptions of the novel coronavirus disease. This research aims to delineate the role of loyalty, trust, and transparency on resuming in-restaurant dining during and after the pandemic. By identifying the link between each construct and addressing the unparalleled food-/health related risks, this study suggests that restaurants who accumulated more customer trust by fostering transparency are likely to have more business and quickly recover from the shock.