CHALLENGES OF CURRENT EXTERNAL ECONOMIC FACTORS
You are the owner of a small pizza restaurant that has endured financial loss during the COVID- 19 pandemic, and the recent inflationary shift in the U.S. economy post-pandemic. Prior to March 2020, your business was averaging $30,000 in monthly revenue, with an average monthly profit of $10,000. During the height of the pandemic, your business declined by 60% - creating a tremendous challenge to meeting the financial demands of the business. By employing a little creativity, you began to provide carryout and delivery orders to your customers.
In the summer of 2021, your business started to rebound and slowly the company began generating 70% of the revenue earned pre-pandemic and returned to in-person dining. By the spring of 2022 the business began to see new challenges with reduced availability and increased cost of supplies necessary to run your business. Employees were hard to find - and even harder to keep - and, once again, sales started slowing down.
One of the ways to fully grasp the various economic conditions that are affecting your business is by reading the textbook and the links provided below. Please use the textbook as a start to your research. There are many more credible sources available online for your research in addition to the ones listed below.
Forbes Economic Forecast 2022 & Beyond Understanding America's Labor Shortage Key Challenges Restaurant Will Face in 2022
Please utilize “credible†sources for each item in your paper and cite your sources (APA style). For more information about credible sources, you should review the MC Library link provided. https://libguides.montgomerycollege.edu/apa
Your paper will explore and describe the economic conditions and possible reasons for these conditions (e.g. COVID, employment, prices, supply and demand, etc.). Please address all 5 bullet points in your research.
Which business cycle(s) did your company experience between January 2020 thru July22?
What impact does the current employment situation have on your business and your industry (restaurant/hospitality)?
How has the current economy affected your pricing and customers?
• What is the current level of the U.S. consumer confidence?
• What are three things you can do to keep your business up and running through these
economic times?
The current employment situation has had a huge impact on my business due to labor shortages that have made it difficult to hire enough employees, leading to increased costs and decreased efficiency within my restaurant. On top of this, the current economy has led customers away from dining out with their families or friends - opting instead for takeout or delivery orders - thus negatively affecting my sales revenue since people are less likely to purchase items at full price when ordering outside of the restaurant.
Right now, consumer confidence is at its highest level since before the pandemic began in February 2020 according to Forbes Economic Forecast - indicating that people's attitudes towards spending money have been bolstered as more jobs become available again across numerous industries including hospitality/restaurant businesses; creating even more opportunities for those who haven’t already been able reclaim their financial footing back quite yet still..
In order keep my business up and running through these economic times I need employ three key strategies: firstly I should focus on increasing customer engagement either through social media outreach or email campaigns; secondly invest into creative marketing initiatives such as online discounts & loyalty rewards programs ; lastly develop cost saving tactics like using automated ordering systems & efficient inventory tracking software etc . Ultimately if successful these tips will help me generate much needed profit margins without drastically affecting our bottom line all while providing great service along with quality products consistently!