1.Volatility has been a kiss of death for thousands of restaurants during thecoronaviruspandemic.

Abrupt closures, inconsistent reopening, changes in publichealthguidance for operations and other state-mandated orders have pushed thefoodservice industry

The latest Local Economic Impact Report, released Wednesday, showed that 60% of the restaurants that temporarily closed due to the pandemic have since shuttered for good.

Buffet restaurants which were called Supplantation in Southern California and Sweet Tomatoes in other parts of the U.S. were done in by the coronavirus.

All 100 or so locations closed during state shutdowns, and the management announced they would not come back.

"We don't see a viable way to reopen," CEO John HaywoodtoldRestaurant Business. The parent company of the chains.

Executives at Steak' n Shake said closings were just "temporary" and that most of those Steak 'n Shakes will be open

Use the concepts of fixed and variable costs to explain why 60% of restaurants would close but the other 40%, also operating at a loss are able to remain open.

Is this a short-run or long-run solution?Explain.