Research: Focus measures its wounds

By George Lampiris

The turnover for the very small catering companies operating in the prefecture of Attica (excluding Piraeus, West Attica and Lavrio) will show a further contraction in 2021, which will be reduced by about half compared to the corresponding amount of turnover recorded in 2019. More specifically, while in 2019 the total sales of micro-catering companies in Attica were 1.25 billion euros, in 2020 they decreased to 719.89 million euros and, based on the relevant estimate, will fall to 2021 in EUR 641.72 million. The data come from a survey by the Athens Chamber of Commerce and ICAP entitled “Estimation of financial losses for the catering sector in 2020 and forecast for 2021 in the Attica region”. In total, the micro-enterprises lost 613 million euros within two years and during the pandemic.

In essence, the turnover of small catering businesses was reduced by 537.5 million euros during 2020 and compared to 2019, while in 2021 it is estimated that it will lose an additional 76.2 million euros. The percentage change in sales for 2020 compared to 2019 amounted to 42.7%, while for 2021 the reduction is expected to move to the level of 10.6% compared to 2020.

An additional 607 million was lost to related industries

Secondary, but equally significant, is the loss associated with the shrinking turnover of micro-catering companies, as it is estimated that it caused a decrease in turnover by 607.4 million euros in all sectors directly or indirectly related to its industry. catering as suppliers, such as accommodation services, food and beverages, wholesale, real estate, retail.

Revenue of 139.9 million euros for employees was lost

In addition, the reduction in the turnover of micro-catering companies in 2020 caused an estimated contraction of the income of catering workers by 139.9 million euros. Employment in catering, according to the research, decreased by -0.9% within 2020, while the forecast for 2021 speaks of an increase of 3.5%. The multiplier reduction of jobs in all sectors of the economy due to the focus was estimated for 2020 at 20,400 employees.

The main factors of concern are the uncertainty and the division between vaccinated – unvaccinated

The main problems that catering businesses face in relation to the market and consumers are the uncertainty, the division between vaccinated and unvaccinated, the low vaccination rate among the citizens, the decrease of the clients due to the fear of the pandemic, as well as reduced liquidity in the market.

Other factors of concern to industry professionals are market instability and, consequently, poor psychology, delayed recovery in consumer traffic, teleworking and job inhibitions that have led to reduced consumption in the workplace, the ban entry to the unvaccinated, the control of customers upon entering the stores and the daily life, as it is shaped by the constant implementation of the new measures.

At the same time, businesses are experiencing significant difficulties due to lack of liquidity and reduced turnover, difficulty in retaining staff, lack of support from the NSRF and banks, rising costs in raw materials, the course followed by the purchasing power of the public . Additional factors that cause difficulties in the operation of catering companies are the high competition from the entry of many new players in the market, the increase in operating expenses and additional debts in the last two years, the state legal framework for companies, the tax framework for new investments and job insecurity.