Surviving the pandemic: COVID-19 and restaurant closures in Suzhou

ABSTRACT

The outbreak of COVID-19 disrupts the economy and presents challenges to small and medium enterprises in various sectors. Focused on the restaurant industry in Suzhou, China, this study draws upon secondary data from Meituan Dianping and Baidu Map API and considers how variables related to restaurants themselves and variables pertaining to restaurants’ built environment conditions contribute to their survival during the pandemic with the use of regression analysis. For restaurants, it is important to have certain core competencies, such as price or quality advantage, if they were to survive external shocks. In addition, high population density of a restaurant’s surrounding area, one of the most crucial factors in determining business success under normal circumstances, significantly reduces its survival likelihood during the pandemic. We conclude by outlining opportunities for future research.

Highlights

• This study examines what determines restaurant survival in the pandemic.

• The survival is influenced by both restaurant and built environment factors.

• Restaurants need to have specific core competencies to survive market shocks.

• Density and accessibility have adverse impacts on restaurant survival.

• The analysis provides policy suggestions for similar circumstances in the future.

KEYWORDS:

• COVID-19
• core competencies
• built environment
• restaurants
• survival

Disclosure statement

No potential conflict of interest was reported by the author(s).

Additional information

Funding

This work was supported by Xi'an Jiaotong-Liverpool University: [Grant Number Key Program Special Fund (KSF-E-43)].