Question
Does the following article refer to Monopolistic Competition? Please explain to me why yes or not. What Microeconomics terms can I use to provide a
Does the following article refer to Monopolistic Competition? Please explain to me why yes or not. What Microeconomics terms can I use to provide a critical about it?
"The pandemic is changing how restaurants do business ? and it might be for good."
Focus on takeout and delivery will mean smaller restaurants, with less face-to-face contact
Beckta, a storied upscale restaurant in downtown Ottawa, was buzzing one recent day?but it wasn't because of diners. The second-floor dining room was converted into an assembly line where staff were packing three-course dinners into paper boxes.
Dozens of these kits?with lamb shank confit, prawn lettuce wraps and espresso tarts, along with a wine pairing?stood ready to be delivered to diners' homes by one of the restaurant's in-house drivers.
Beckta began offering them in May 2020. They're such a big money-maker that the restaurant cancelled its lunch service and reduced opening hours. It now operates five days a weekand is employing a record number of staff.
It's even made restaurant work, usually a gruelling affair with long hours, something with somework-life balance, owner Stephen Beckta said.
"For me personally now, my workday is probably eight to six most days," he said. "I used to do a lot of nights in the restaurant, so I get to see my family a lot more than I used to."
Like other restaurants devastated by the COVID-19 pandemic, Beckta had to adapt. And like other restaurants, he found that takeout and delivery helpedkeephis business afloat, mitigating the losses experienced due tolockdowns and capacity limits.When paired with a full return to indoor dining, he said, it meant pullingin more cash than ever.
"Full-service restaurants are adopting the takeout mentality," said Jacob Mancini, associate vice-president for restaurants and breweries at Canadian Western Bank, which lends money to restaurants.
"We're seeing specialized menus specifically for takeout. We're seeing food that's easier to make or have higher margins. These are efforts to encourage customers who can't come to the restaurant."
As the pandemic drags on, with new variants and new restrictions sending Canadians back into lockdowns, it's changing the way restaurants operate and plan for the future, restaurateurs and industry observers say.
And it's heralding big changes to the dining experience, such as smaller restaurants, dedicated takeout counters, and a shift towardsnazzier experiences to lure back indoor diners.
Restaurants are coming back...but differently
There's good news for restaurants: after a brutal slump and many closures, countrywide sales were nearly back to pre-pandemic levels last summer. Limited-service restaurants, such as fast food and takeout counters, hit all-time highs.
Butthe costs of doing business also shot up. Appliances and ingredients are more expensive due to a global supply-chain choke. Providing workers with protective equipment and enforcing vaccine passports also costs money.
A severe labour shortage, especially in low-wage jobs, is also pushing restaurants to increase salaries and offer incentivesto lure back waiters and cooks.
On top of that, Canadian restaurants have a combined $15 billion of debt from the pandemic, according to Vince Sgabellone, a food industry analyst for NPD Group, a market research firm.
"It's a big hole. Restaurants were already a low-margin business, in the single digits. Now it's even thinner," he said.
Restaurant revenues hit all-time highs...
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