Public health experts and government officials are discussing how and when to reopen the U.S. economy. But when businesses start to open their doors, consumers can expect changes in the hospitality, restaurant and tourism business.
“The recovery is where it’s going to be really tricky because I think people are hurting when it comes to paying this month’s rent and utilities and stuff,” Ajai Ammachathram, a professor of hospitality and tourism at the University of Nebraska-Lincoln says. “So it’s going to be really challenging to get those customers back.”
He says the road back will be tough because consumers have less disposable income. The profit margin in the restaurant industry is low –only 4 to 6-percent in many cases.
“Many businesses won’t come back and those that do, will be cautious,” he says. “They might not invest more in infrastructure, buying more new equipment, or renovating their property and stuff like that. So all those projects might come to hold or be pushed back.”
Another problem?
Consumer confidence has plummeted. The hospitality industry will have to work hard to get customers back to cruise ships and restaurants.
“They have to go that extra mile and educate the customer or the future guest saying that we are cleaning excessively, we are taking care of those hygiene practices, we are enforcing food safety,” Ammanchathram says.
Ammachathram teaches a class in at the University of Nebraska-Lincoln on issues the hospitality industry deals with on a regular basis, even during good times. He hopes the current crisis shines a light on issues common among employees in the industry and leads to solutions for those problems.
“The lack of health care benefits, living paycheck to paycheck. I hope things get better. I hope there is a long term fix and not just a band-aid.”