Has the pandemic led to a decline in the number of customers and sales in the restaurant industry in the UK?

Background
The first case of COVID-19 was reported in Wuhan, China, in later 2019, it could not be anticipated how quickly it would spread to the rest of the world and result in a pandemic, leading to devastating effects in the coming years. In March 2020, the World Health Organisation proclaimed the virus a universal pandemic, and the announcement had distressing effects on each sector of the world economy as nations took radical action to contain its spread (Vig and Agarwal, 2021). The confusion and anxiety that followed the declaration affected every facet of life. This study seeks to assess the effects of COVID-19 on the UK hospitality industry, specifically the restaurant segment, which was adversely affected following containment measures to counter the spread of the virus.
1.2. Effect of COVID-19 on the Hospitality Industry
The lockdowns on cities have affected labour mobility, slowed down economic activities, and affected consumption in the UK hospitality industry (Memon et al., 2021). This statement is evidenced by data from the Office for National Statistics (ONS), which shows that consumer spending was 70% lower than in the pre-pandemic period. The decline in consumer spending was highest in spring 2020, and the figures have not returned to the pre-pandemic level. The ONS further shows that the value of payment to suppliers for food and drink business was 51% of the pre-pandemic period, with the hotel and holiday accommodation experiencing a 72% drop from the pre-pandemic period (ONS, 2021). The hospitality industry was affected most following restrictions on social gathering, movement, and social distance (Panzone, Larcom, and She, 2021).
1.3. Statement of the Problem
The hospitality industry was substantially affected by the pandemic as people could not move freely, had to maintain social distancing, and could not interact face-to-face or dine out. For example, Hooker (2021) shows that 10.2% of restaurants discontinued their operations in the period between March 2020 and April 2021. Although the number of restaurants in operation is currently still high, sales volumes have declined as fewer customers visit restaurants (Panzone, Larcom, and She, 2021; Vig and Agarwal, 2021). Despite such negative outcomes, few empirical studies have focused on the direct and indirect impacts of the pandemic on restaurants. The current study aims to fill this gap by investigating the effects of COVID-19 on the UK hospitality industry, with a particular focus on restaurants.
1.3. Aim
The aim of the research is to assess the effects of COVID-19 on the UK hospitality industry.
1.4. Objectives
• To determine the effects of COVID-19 on the number of customers visiting restaurants.
• To explore the effect of the pandemic on revenues generated by restaurants.
• To establish the effects of the pandemic on employment in the UK restaurants.
• To provide some recommendations for organisations in the hospitality industry to tackle difficulties by potential interruptions/pandemics in the future.
1.5. Research Questions
i. Has the pandemic led to a decline in the number of customers and sales in the restaurant industry in the UK?
ii. How has employment in the restaurant sector changed due to the pandemic?