An Effect Caused by the Outbreak of Coronavirus (COVID-19) and the Survival Strategies of Food & Beverage Business.

Abstract

The outbreak of Coronavirus (COVID-19) which has been prolonged for more than 2 years has extensively affected food & beverage business. The business had to be closed for a period of time due to the government measures although the restriction has been loosened and food delivery has been allowed. There has been a strongly affected on this kind of business though. The entrepreneurs, consequently, must plan their new competitive strategy in order to fit into the situation. The purposes of this article were to investigate the effect on food & beverage business caused by Coronavirus, and to examine the survival strategy employed by food & beverage business in order to survive in this severe situation. The value expansion rate of full-service restaurants during the same period of time was compared and found a little higher or 0.7% today than that of last year. However, the value expansion rate of limited-service restaurants and street food has increased to 2.4% and 2.0%, respectively. These two kinds of service were small in size so they could easily adapt themselves better than those large in size. The survival strategies recommended for food & beverage business entrepreneurs included compact size; mobility to reach the target group; flexibility should be combined; cost leadership strategy or cost focus strategy were also suggested in order to reduce an overall cost and change to an appropriate operation.