The restaurant industry is among the hardest hit by the effects of COVID-19. In fact, nearly one in six US restaurants has closed on a long-term or permanent basis so far and closures continue to gain pace across the nation. Challenges brought along by the pandemic have only been exacerbated by the debt load the sector had taken on previously. In the absence of a significant turnaround, restaurants may be forced to contemplate a series of debt restructurings in the coming months and years.
In this article, we provide insight as to how the restaurant, hospitality and leisure industry can overcome their elevated debt levels.
"Many operators facing closure are succumbing to direct consequences of the crisis, including increased expenses related to health safety, capacity restrictions, and ongoing weakened consumer sentiment."