By the end of 2022, cafes and restaurants will be closed en masse in Russia – analysts

Now the institutions are adapting to the new working conditions, but not everyone will succeed.

Experts have predicted the closure of restaurants in Russia. In their opinion, despite the fact that now the number of new cafes and restaurants is increasing, by the end of the year the situation will change dramatically. There is a very high probability that the focal points will be closed en masse.

“Now you should not expect significant changes in the dynamics of the opening of organizations in the catering industry, they will be felt by the end of the year: from October to November we anticipate mass market closures,” said Vladimir Savelyev, an analyst in the business ecosystem. Kontur, his words are led by RIA Novosti.

In his opinion, in the first five months of 2022, the number of cafes, restaurants and eateries in the country only increased, as the market adapted well to the limitations of the coronavirus and managed to reach pre-pandemic levels.

By the end of 2022, cafes and restaurants will be closed en masse in Russia - analysts

“The number of business launches exceeds the number of closures, we can say that the owners are not in a hurry to shut down the business, but are waiting, watching the further development of events,” the expert noted.

The analyst is sure that such an effect was observed during the first lockdown due to COVID-19, but then there were even more restaurant closures.

According to Mikhail Dobrovolsky, head of automation for small and medium-sized enterprises of the company, the facilities are now adapting to the new working conditions. He singled out several trends: import substitution, SBP, rejection of paper tapes and checks, customer retention. Many companies are looking for domestic products instead of imported ones, agreeing with suppliers for installments and discounts. Some facilities are combined with others for common purchases – this saves you money.

By the end of 2022, cafes and restaurants will be closed en masse in Russia - analysts

However, according to forecasts of Vladimir Savelyev, by the end of the year some companies may close.

“Significant changes in the dynamics of the number of companies can be expected towards the end of the year,” he said.

In mid-May, it became known that more than 6,000 restaurants had already closed in Russia due to sanctions. According to TASS, they could not adapt to the new working conditions, when supplies were cut off and the cost of products increased. Thus, according to the same “Contour”, from February 24 to May 9, 2022, 6.5 thousand cafes and restaurants closed in the Russian Federation. This is a significant percentage, but it is 26% less than in 2021, when 8.8 thousand facilities were closed. In addition, the number of vacancies has also decreased – from 10 to 7.9 thousand.

“From the end of February to the beginning of May 2022, the number of companies increased by 1%, the percentage is insignificant. We expect that by the end of the year, the advantage in one direction or another will be more noticeable “, the company noted.

By the end of 2022, cafes and restaurants will be closed en masse in Russia - analysts

In March, orders from cafes and restaurants also fell sharply – we are talking about the delivery of groceries and ready meals. In the period from March 1 to March 20, the number of orders for food delivery from restaurants in Russia decreased by 12-15% compared to the same period in February, according to data from the Chek Index.

CloudPayments estimates that over the same period, ready-to-eat online turnover fell by 18% in cash terms and the number of orders fell by 16%. Service analysts attribute this to the fact that Russians have reconsidered their spending due to financial difficulties – they have started ordering food less often and cooking at home more often.

With the launch of a special military operation in Ukraine, Western countries began to impose sanctions on Russia, restricting the work of companies, and foreign investors began to leave the Russian Federation in the wake of the “cancellation of Russia” and under pressure from western countries. Such maneuvers are unprofitable for them.

By the end of 2022, cafes and restaurants will be closed en masse in Russia - analysts

Visa published a quarterly report in which it revealed its losses from the suspension of activities in Russia. The losses amounted to about $ 60 million. Swedish telecommunications equipment maker Ericsson estimated a loss of 900 million kroner (about $ 95 million) in its reports for the first quarter of 2022, which is related to the suspension of the company’s activities in the Russian market. Other companies are also counting on billions of dollars in losses.

But the popular McDonald’s fast food restaurant is finally leaving Russia, but it leaves something. The new owner (the network sells its business to a Russian buyer) will keep the staff, the restaurant chain and part of the menu. The restaurants will open with the new brand at the beginning of the summer. McDonald’s left the Russian Federation under pressure from the international community.

Leave a Comment