GROUP 9:

RESTAURANT BUSINESS DURING PANDEMIC IN

BANGLADESH

Name ID Activity
MD. Nur Shihab 17-35112-2 Introduction
Tashdid Wasel Ruhin 19-39644-1 Literature Review
Fahmidah Faiza 19-41406-3 Research Methodology

TABLE OF
CONTENTS
INTRODUCTION ........................................................................................1

Literature Review .............................................................................................................3,4

Research Methodology ....................................................................................................5,6

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Introduction (MD.Nur Shihab)

Over the last ten years, the restaurant industry has experienced enormous growth. This pandemic
situation the restaurant industries are facing ultimate provocations. The provocations include
joblessness of workers, temporary location closures, protecting employees from the infection of
COVID-19 in the workplace, and ensuring financial security. Therefore, the anticipated negative
impact on the restaurant business is very high.

Brief Introduction

The restaurant business in Bangladesh has no institutional recognition. It has no mentionable

business guidelines and juridical structures to combat any epidemic like coronavirus diseas-19
(COVID-19). Because of not having a legitimate basis this sector is suffering a serious financial
crisis in the global pandemic. Revenues generating ability has drastically decreased when the
government ordered for shutting down the non-essential organization to fight against the
spreading the coronavirus. At the same time government also imposes stay order on various
special programs like weeding, birthday, new-year celebration, and Iftar party which is directly
related to restaurant business. This research, therefore, focuses on the impact of COVID-19 in
the restaurant business in Bangladesh.

Problem statement

The pandemic is leading to the severe sufferings of workers and owners of the restaurants both
fast food and general hotels, the restaurants and convention centers. This deteriorating condition
will further be on the increase of the government incentives providing policy needs of the most
vulnerable groups in the country in the coming months. Otherwise this small and medium sector
will go out of the economy (Food Fair, 2020). Ongoing COVID-19 pandemic has a bad impact
on workers‟ economic securities such as earnings certainty, professional certainty, labor
certainty, hiring certainty, representation certainty, labor market certainty and competency
reproduction certainty.

Objective of the study

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The objective of this study is to identify restaurant business perceptions about during pandemic,
government measures, strategies they applied, and lessons learned for the future. The results
reveal the existence of common concerns to all restaurant business during pandemic period,
about the measures that the governments should implement, and about the strategies and lessons
learned for the future. Resilience in face of the future, fear of a lack of appropriate government
measures, strategies designed for markets with greater immediate availability, and the creation of
working capital are visible concerns in the restaurant business.

Significance of the study

The coronavirus outburst has fatally affected the restaurant business. To know the proper way of
solution for the current problem of the restaurant business a scientific study is inevitable. This
study will give light into the matter of the restaurant business. It will also help the government,
respective authorities, and other stakeholders in formulating policy for the future development of
this sector.

The research questions that this study attempts to address are:

(1) What are the main concerns that restaurant Business during pandemic period?

(2) What strategies do restaurant business need to adopt?

(3) What are the main problems of restaurant business during pandemic?

Literature review (Tashdid Wasel Ruhin)

The novel coronavirus (COVID-19) is vindicating the world. Respiratory disease of unknown
cause detected in Wuhan, China, was first revealed to the WHO Country Office in China on 31
December 2019 (Geosslinga, Scottd, & Hallf, 2020). Bangladesh confirmed the first coronavirus
case on 8 March 2020. In response to the COVID-19 epidemic, the Government of Bangladesh
(2020b) announced outstanding “general leave” from 26 March in the name of “lockdown” and
extended it up to 30 May 2020 in seven different time period. Both the words “general leave”
and “lockdown” produced uncertainty among the most socio-economically endangered groups in
the country. The artificial lockdown and the interpersonal distancing plan of action in an
impenetrable populated country of more than 165 million did not work (Shammi, Bodrud-Doza,

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Islam, & Rahman, 2020). Government responses to survive the pandemic can be discussed in
three ways. Firstly, responses from the labor sides, secondly, responses from the government
and thirdly, responses from social protection and employment institutions. Firstly, to fight
against the impact of COVID-19 the labor response on it is going to operate the restaurant
business in an online platform. Taking orders online, making delivery and payment in online
gateways make help the restaurant labors to survive in the global crisis. In that regard, some
young entrepreneurs introduce a new concept called “cloud kitchen” to attract the customers who
otherwise preferred to dine-in, under normal circumstances. According to the paradigm of cloud
kitchen customers could no longer come to restaurant, the restaurateurs decide to reach them.
Secondly, the important responses from the government side in Bangladesh is to allot Tk.
103,117 crores under 19 packages which are 3.7 percent of GDP to fight the coronavirus
pandemic and protect people from the probable crisis. From these stimulus packages Tk. 20,000
crores has been allocated for providing working capital to the small and medium industries. The
interest rate of this incentive package will be 9 percent and the taker of the loan will
pay 4 percent as interest and the rest of the 5 percent interest will be paid by the
government as a subsidy (UNB news, 2020).Besides this, the government has announced a
“Ghore Fera” (Returning home) program for low-income people who have lost their jobs
due to the COVID-19. Under this service low-incomers will get home assistance facilities, six
months’ food and cash, free VGD and VGF, free medical treatment and Tk.10 per kg, rice (The
Business Standard, 2020). The Government also takes initiatives namely the “Kaan Pete Roi”
helpline. The mission of the helpline during COVID-19 is to alleviate feelings of despair,
isolation, distress, and suicidal feelings among members of the community, through
confidential listening. The government also developed a website https://corona.gov.bd/for 24
hours’ service for sharing updated information about the coronavirus. Several hotline centers
have been introduced for the treatment and information transmission to the citizenry such as
national call center #333, Sastho Batayon #16263, IEDCR #10655, and National helpline #109
(GOB, 2020). People can afford these services free of cost. Responses from the various
social protection and employment institutions are, Bidyanondo Foundation‟s „Ek Takay
Ahar‟ team made one thousand Personal Protective Equipment (PPE) suits. They are also
providing meals to poor families and daily incomers. Employment institution Pathao has re-
launched “Tong”, an on-demand essential delivery service, in response to the coronavirus

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pandemic as it is committed to keeping customers, partners and communities safe. The top
priority is to save lives now and flatten the curve of the pandemic. Priorities should be given on
the innovating vaccine for controlling the coronavirus. Priorities in addressing the consequences
of COVID-19 in restaurant labor can be discussed from the aspects of the state, social group,
workers, employers and institutions. Value-added tax (VAT), income tax and all sorts of other
utility expenses should be exempted to uplift the lives of the restaurant labors. The state should
provide free safety equipment such as sanitizers, face masks, PPE and temperature screening
tools to the restaurants which are in operation. Incentives must be allocated to the interested
owners without any delay, easy conditions and harassment. Ministry of labor and employment
should recognize and validate the papers of restaurant business, if need, the ministry can take
initiative for passing a new law or ordinance for smooth running of informal sector business.
Bangladesh’s labor welfare foundation should provide emergency funds among the restaurant
labor to survive on the pandemic.

RESEARCH HYPOTHESIS: Based on the above discussion, the study was suggested the
following alternative hypotheses: RH-1: H1: There is a significant relationship between COVID-
19 and the average income of the Restaurant business.RH-2: H1: There is a significant
relationship betweenCOVID-19 and the average number of orders of the Restaurant
business.RH-3: H0: μ= There is a significant relationship between COVID-19 and the average
loss of the Restaurant business.

RESEARCH METHODOLOGY(Fahmidah Faiza)

Research Design
Acknowledging the effect of COVID-19 on the restaurant business in Bangladesh, the study
picks out the numerous consequences of lockdown based on writings analysis, the lockdown
situation in Bangladesh, and the small businessmen’s ability to hold on without steering their

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business. Because of not having a legitimate basis this sector is suffering a serious financial crisis
in the global pandemic and so online platform was used to conduct research on the level of
impact the pandemic caused on some restaurant businesses in Bangladesh.

Describe the data collection method

Data were collected through purposive sampling method through questionnaires.

Instrument use (Questionnaire)

A total of 23 questions and 7 utterances were used to prosper the questionnaire to realize the
framework-based result appraisal and handling of the COVID-19 at the restaurant business in
Bangladesh. The work out questionnaire with a preliminary section indicating the objective of
the study was shared through email, Facebook, Messenger with particular and pertinent people
considering the purposive sampling method.

Sample determination
The target populations were the fast food and Chinese restaurants, hotel and restaurants and
convention centers having a capital of Tk. 50,000-50,00,000. The answers to the survey
questionnaires were a voluntary basis. A total of 15 responses were recorded during the survey in
the purposive sampling method.

Data measurement scale (Nominal, Ordinal or Likert scale)

A five-point (1–5) impact based Likert scale was applied to test whether each respondent realize
the utterances set out ranging from strongly disagree to strongly agree.

Analyzing procedure
The data of the current research was analyzed with the help of descriptive statistics like
frequency distribution, using percentages, and student t-test to know the participant’s
characteristics. The statistical package for the social science (SPSS) v. 24.0 was used for
analyzing data. Datasets were analyzed through a set of statistical tools (PCC) and descriptive

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statistics. One sample t-test and dependent sample t-test were also used to test the hypothesis
(Gaur & Gaur, 2009).