Question

Explain Risk COVID - 19 Exposure in form of table for restaurant business.

Answer 1

The answer will consider different types of activities in restaurant business, rate them in low, medium and high risk and briefly explain the risks involved with Covid 19 Perspective-

Exposure Risk	Restarurant that Runs with this model
Low	Food service (drive-through only)
Low	Delivery
Medium	Take - Out
Medium	Pick Up from Shop
Medium	On Site Dining with open windows and no air conditioning
High	On Site Dining with closed windows and air conditioning
High	On Site Dining with reduced Capacity
High	On Site Dining with Seating far apart
Very High	On Site Dining without reduced capacity / no social distancing/ no open windows or air conditioning

Further, from a business operation point of view, these are the major risks exposures:

Risks that impact the Restaurants	Covid 19 Exposure
Customer Loyalty	In wake of covid 19, many people are avoiding restaurant food and trying to opt home cooking as a viable alternative.
Brand Value	If a restaurant is found to be responsible for covid spread, its brand value will significantly fall.
Operational Risk	Due to low demand, the restaurants have lost their pricing power and are struggeling to operate with a business as usual perspective.
Credit Risk	Low revenues due to low demand --> Leading to default on debt payments.
High Employee Turnover	Migrating employees in developing countries due to stringant lockdowns may create problemes once the situation becomes better as good employees may switch to competitors.
Financial Risk due to Employee Wellbeing	If an employee contracts Covid, the restaurant may need to be quarantined. This will lead to Financial losses.