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.
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.
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.
It is estimated that in the country there are about 800 restaurants that employ approximately 26 thousand people, and together generate $710 million in annual revenues.
The study carried out by the Universidad Tecnológica de El Salvador (UTEC) and the Asociación de Restaurantes de El Salvador (ARES), states that 82% of restaurants are in the central area of the country.
Suppliers and distributors in the sectors representing food, gastronomy and hospitality in El Salvador and Central America will be taking part in business meetings from June 27 to 29 in San Salvador.
From The Food & Drink Trade Show 2016 wesbite:
The Restaurant Association of El Salvador will be bringing together in our country, for the third consecutive year, suppliers, distributors and importers to display their products and services for the food industry, hospitality and related sectors in the region.
"The Food and Drink Trade Show 2014" will be held from May 19 to 21 in San Salvador and will bring together international buyers with companies in the region.
From a statement issued by the Restaurant Association of El Salvador (ARES):
ARES presents the first annual exhibition that brings together suppliers, distributors and importers to showcase their products and services for the food industry, and related hospitality services in the region.
Most of the jobs lost have been in the transport, restaurant and hospitality sector.
Stats from the Salvadoran Social Insurance Institute show that 42.444 people worked in the tourism sector in 2008. This number stands now at 41.064 workers, a 3.3% drop.
"Jobs in the food and beverage sector have adjusted to reality, as restaurants have now less customers", said Pedro Dalmau, president of the Restaurants Association of El Salvador, when interviewed by newspaper La Prensa Gráfica.
The average sales have dropped between 10 and 15%. A drop of up to 40% was registered according to a report by the Restaurant Association.
Jorge Dalmau, president of the Restaurant Association of El Salvador (ARES) told laprensagrafica.com: "Consumer habits have changed. Now, diners share their meals and drinks, and they do not ask for appetizers or desserts.
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