Businessmen in El Salvador believe that in most cases home sales are only enough for companies to cover fixed costs and workers' salaries in this health crisis, but they do not visualize it as a long-term solution.
Thursday, April 23, 2020
The outbreak of covid-19 in the country forced local authorities to decree home quarantines and to order restaurants to close temporarily, in order to contain the advance of the virus.
Leo Guzmán, president of the El Salvador Restaurant Association (ARES), told Laprensagrafica.com that "... home deliveries are not a solution, because people prioritize other expenses, such as stocking up on food. On the weekends, the frequency of orders does increase a little, but it is still far from the volume that restaurants need."
Guzmán added that "... it is not a question of whether or not it is worth the home service, but rather if it responds to the need to pay the payroll every month. We have an obligation to the employees to pay their salaries, so in a way we collect something, those who are qualified."
Regarding restaurant sales projections, the interactive information system developed by CentralAmericaData forecasts that when Central American economies begin to relax the restriction and quarantine measures that have been taken to prevent the spread of covid-19, the demand for meals outside the home will decrease by about 7% from the levels reported prior to the health crisis.
Restaurants in El Salvador and covid-19: How to face the new commercial reality?
We prepared for our clients the report "Information system: Covid-19 and business forecasts" which helps companies to measure the impact that the crisis will have on their activity in the coming months and what opportunities will arise in the context of the new commercial reality.
Achieving the confidence of consumers, who have less money available to eat out in this context of economic crisis, is the main challenge for restaurants in El Salvador in the new commercial reality.
As a result of the health emergency caused by the covid-19 outbreak, the Association of Restaurants of El Salvador (ARES) estimates that 40% have already reactivated their food service, 30% are still analyzing their economic situation to return and the remaining 30% have already closed their total operations.
When the country's authorities begin to relax the restrictions that have been taken to prevent the spread of covid-19, it is predicted that rotisserie chicken sales could fall by 2%.
Using a demand/income sensitivity model developed by the Commercial Intelligence Area of CentralAmericaData, variations in household demand for different goods and services can be projected as the most critical phases of the spread of covid-19 are overcome and the measures restricting mobility in the countries of the region are lifted.
The installation of acrylic sheets in customer service windows and the distribution of work areas guaranteeing a meter of distance between employees are some of the measures that have been applied by fast food chains in Panama.
Following the covid-19 outbreak, companies have faced health and safety challenges and have had to reinvent themselves in order to continue operating.
In response to the health crisis facing Panama, the sector's union requested government intervention to suspend rent collections and payment of employer's fees.
On April 1, 2020, the Association of Restaurants and Related Industries of Panama (ARAP) sent a note to the Presidency of the Republic, in which they requested that given the crisis that has been generated by the outbreak of covid-19, they be granted a moratorium of 6 months or more.
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