Risks of investing in the restaurant business: structural difficulties exacerbated by the health crisis

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Abstract:

In recent years, the pandemic and related restrictions have hit catering establishments hard. The market did not have time to adapt to the new realities, because in 2022 the company faced new and unforeseen problems related to sanctions. Supply chains are collapsing, suppliers are raising prices, and some of them stop working in the Russian market, there are problems with equipment. The purpose of the study is to assess the risk of investing in the restaurant business in modern economic conditions. In the course of the study, the assessment of the sphere of public catering enterprises until 2021 was carried out, the dynamics of opening and closing restaurants in St. Petersburg was shown, the dynamics of the turnover index and producer prices were analyzed. As a result of the study, the potential risks of investing in the field of public catering are considered and opportunities for investment in the current realities are identified. Despite the attractive image for investment, the catering market remains very difficult, especially considering its tendency to competition. In addition, the study revealed a number of key problems specific to this sector that a potential investor will have to deal with.