Risk Factor of Newly Opened Restaurants in the New Normal: Basis for Risk Management Plan

Abstract

Restaurants and foodservice businesses were some of the first economic activities severely impacted by the COVID-19 pandemic. Dining in restaurants virtually stopped overnight in cities and states as social distancing guidelines took effect (Bauer, 2020). The coronavirus pandemic is forcing the restaurant industry to look into a different business model that would embrace the “new normal” setting (Forés, 2020). Descriptive design was used to determine the degree of the risk factors newly-opened restaurants in the new normal at Bacolod City as basis for risk management plan, where a total of 130 Owners will answer a research made survey instrument and the data gathered will be subjected to SPSS with frequency count, percentage, mean and Mann-Whitney U test as statistical tools and descriptive and comparative will be used as analytical schemes. Results revealed that degree of risk factors of newly-opened restaurants in the new normal on the areas of financial risk, competitive risk and operational risk were high degree. When grouped according to variables type of ownership, type of restaurant, size and location, degree of risk factors of newly-opened restaurants in the new normal in all areas of financial risk, competitive risk and operational risk revealed high degree across categories. No significant differences were found on the degree of risk factors of newly-opened restaurants in the new normal on the area of financial risk and operational risk when respondents were grouped and compared according to variables.  In addition, no significant differences were found on the degree of risk factors of newly-opened restaurants in the new normal on the area of competitive risk when respondents were grouped and compared according to type of ownership, type of restaurant, size. On the other hand, significant difference was found on the degree of risk factors of newly-opened restaurants in the new normal on the area of competitive risk when respondents were grouped and compared location. according to location. Therefore, it was recommended that location needs to be considered as it is an important aspect in putting up a business. Thus, owners must look for a good location which is accessible to consumers such as near business centers in order to have a good target market.Finally, all restaurants are experiencing the same problem due to COVID19 pandemic, they are struggling to operate, strictly complying to the health and safety protocol, but are still doing their best to serve its customers, maintain their employees and sustain their business operation.