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Impact of COVID-19 on the Restaurant Franchising

Author

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  • Georgina Lukanova

    (University of Economics - Varna, Varna, Bulgaria)

Abstract

The last two years of human development took place under the influence of the COVID-19 pandemic that affected each and every field of socio-economic life. The restaurant industry is one of the most affected sectors as a result of the measures taken by states for limiting the spread of the Corona virus. The initiatives for keeping social distance, restricting free movement nation- and world-wide, full or partial lockdown resulted into a number of negative consequences for the restaurant activity like job loss and closure of outlets. When recessions happened before the franchising business model turned out to be a sustainable and leading model for growth. COVID-19 created unprecedented challenges to the franchising community, however, the franchisors and franchisees react quickly and carefully in order to minimize losses through implementing a number of activities. It is exactly in this respect that the goal of this study is set: to present and summarize the main impacts of COVID-19 on the world franchising industry and, in particular, on the development of restaurant franchising.

Suggested Citation

  • Georgina Lukanova, 2021. "Impact of COVID-19 on the Restaurant Franchising," Izvestia Journal of the Union of Scientists - Varna. Economic Sciences Series, Union of Scientists - Varna, Economic Sciences Section, vol. 10(3), pages 3-12, December.
    • Handle: RePEc:vra:journl:v:10:y:2021:i:3:p:3-12
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    File URL: http://su-varna.org/journal/IJUSV-ESS/2021.10.3/3-12.pdf
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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    restaurant franchising; restaurant chains; pandemic; Covid-19;
    All these keywords.

    JEL classification:

    • Z31 - Other Special Topics - - Tourism Economics - - - Industry Studies

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