Name: ROSANN G.

CABANTE
Course & Section: AB FOREIGN SERVICE 201
Full name of Course: INTRODUCTION TO INTERNATIONAL TRADE (IITN04F)
Professor: Prof. JUMEL G. ESTRAÑERO

The Quick Service Restaurants: The Closure of Major Food Chains During the Covid-19
Pandemic.

Introduction:
A Food Chain Restaurants are a set of similar restaurants that is either stick in a large
company or that has a franchising arrangements in a several different locations. Also
offer take outs and food delivery services within your home. It could be 10 locations or
more than one that crosses the frontiers of state and centrally owned. Clark and Clark
states that “A chain store system consists of a number of retail stores, which sell similar
products, are centrally owned and operated under one management.” It means that it is
operating under similar price and ownership. If they are operating in the cities it is
somehow a local chains. If chain stores are situated within a separate regional unit at
various locations, they are known as sectional stores. Federal Trade Commission have
giving information that Since centralized purchasing is carried out under one
management with all the chains owned and managed, large-scale purchasing economies
are available. It was stated as well that in all chain stores, uniform operating methods are
followed: layout, display of windows, ads, selection and training of sales staff, sales
policies, customer services and channel music are carried out in standardized patterns.
The adoption in chain stores of uniform procedures ensures economical operations. We
have Fast Food Chains for example that we commonly see in some areas especially in
cities are Pizza Hut, Starbucks, Dunkin’ Donuts, McDonalds, KFC and a lot more. As we
are in the middle of our trip we usually have this ‘Drive thru’. One of the principal
reasons for the success of fast food is the convenience factor. You can spend mere
minutes in a fast food restaurant and get a full meal instead of having to spend hours in
your kitchen and at a grocery store cooking a meal. McDonald’s is the most popular fast
food restaurant, with more than 37,000 outlets (3) in a number of locations it totally
dwarfs all other fast food restaurants one of the principal reasons for the success of fast
food is the convenience factor. You can spend mere minutes in a fast food restaurant and
get a full meal instead of having to spend hours in your kitchen and at a grocery store
cooking a meal. McDonald's is the most popular fast food restaurant, with more than
37,000 outlets (3) in a number of locations it totally dwarfs all other fast food restaurants.
One major factor in its comfort is the manner in which McDonald’s serves their food.
You don’t need any kind of cutlery for most meals at McDonald’s to eat your meal, just
your hands can do it. This ensures that at any moment, their meals can be consumed
anywhere.

Sometimes to prevent hassle cooking for celebration a lot of us preferred to celebrate

somewhere else in our chosen restaurant. According to Feldman, E. (2015), In
restaurants, the big events in life, personal and professional, are celebrated. In the safe
and regulated setting of a restaurant, strangers become friends around a table. Sometimes,
individuals become lovers at a restaurant table. Restaurants have traditionally served a
human need for connection and shaped beyond the basic function of restaurants to
provide food and drink that creates social life. In a digitized and globalized world, our
economy and jobs rely more on restaurants. That is why these major food chain
restaurant plays a role wherein it unites people to create better social relationship.

Body:

Today we have experienced such Pandemic that could change the way Food Chains
Restaurants are serving. In the beginning of the pandemic, a lot of closures that we see in
news due to a danger of the covid 19 for those places that are likely had a lot of
costumers. And that is the food chains restaurants. Others did have a bankruptcy due to a
sudden loss of costumers while others manage to strike again. The sad part is we are not
ready for this. Those food chains restaurants are not ready in times of the pandemic.

According to Jiang, I. (2020), Since the start of the pandemic, restaurant chains have
been set to experience huge losses, and Pizza Hut is the latest chain to report a series of
permanent closures. It’s still almost impossible for casual-dining restaurants to make a
profit at reduced dine-in size, even with dining rooms reopening in some parts of the
world. As a result, some shops have been closed indefinitely by several chains, and some
brands have chosen to throw in the towel entirely. Among the chains that have
cumulatively closed over 1500 restaurants for good, are McDonald’s, Dunkin ‘, and
Starbucks. Some chains have already applied for relief from bankruptcy or closed all
restaurants. Some take a slower, quieter, or more calculated approach to closures.

Here are the list of chain restaurant closure since pandemic:

A.) Starbucks - up to 400 company-owned restaurant in the US. In its June 10 SEC filing,
the coffee chain revealed that it would close up to 400 company-owned stores in the U.S.
in the next 18 months and up to 200 in Canada. The closures would, however, be
compensated by the expansion of new outlets, taking the total number of Starbucks stores
to a net 300 by the end of the fiscal year 2020.

B.) Dunkin’- After ending its relationship with the gas station chain, Dunkin ‘will close
all 450 stores located at Speedway gas stations, Today announced on July 6. Smaller
places with limited menus are the Speedway Dunkin’s, and a Dunkin’ representative told
Today that the closures will allow the chain to turn its focus to standalone places. In
February, just before the pandemic reached full swing, the decision to end the
relationship between Dunkin ‘and Speedway was made.

C.) McDonald’s - In an earnings call, McDonald’s reported on July 28 that it intended to

close about 200 restaurants by the end of 2020. In Walmart stores, about half of those 200
restaurants are located, which produce a lower volume of sales.

Those closures would be compensated for by openings. In 2020, the company plans to
open 950 new restaurants, 400 of which are going to be in China.

D.) Pizza Hut - The biggest franchisee of Pizza Hut, NPC International, announced on
August 17 that it will close up to 300 Pizza Hut locations and sell all its Pizza Hut
business to the rest. Currently, 20 percent of all US Pizza Hut restaurants are NPC
International Pizza Hut locations. Dine-in restaurants are one of the outlets that are slated
for closure.

Food Chain Restaurants are largely known for its best selling but the pandemic brought a
lot of suffering and bankruptcy, but despite of the loss if sales, these food chains still
manage to recover during the pandemic. As stated above are most of the Major Food
Chains we have all known that somehow struggling and decided to close its hundreds
store worlds wide. The closures are not permanent but for transformation as well. For
example According to Maze, J. (2020), As part of that chain's attempt to "scrub" its asset
base from lower performing sites, Rival Dunkin ', facing some of the same market
change, has closed nearly 700 U.S. locations, nearly 450 of them within Speedway
locations. Dunkin' plans, like Starbucks, to replace those sites with newer, refurbished
units, preferably with drive-thru. These are just some of Major Food Chains Restaurants
that experienced closure during the pandemic. A lot didn’t really survived and announced
a bankruptcy. These restaurant chains that owing to the pandemic, had to declare
bankruptcy. According to Tarantino, O. (2020), Others are going to try to hang on, while
others are gone for good. These chains could no longer function as the coronavirus forced
dining room closures. Almost every industry has in some way been affected by the
coronavirus, but arguably few have weathered the restaurant’s turbulent results. So
basically the Closure of these Famous food chains during the pandemic are not for good
or permanent but for the transformation of its store. They will work on mostly creating a
drive thru for a convenient safety measures because no one knows when will this
pandemic will end. According to Chochrane, C. (2020), Like old mates, chain restaurants
can be soothing. They’re familiar and convenient: you still know exactly what you’re
going to get. That’s why seeing your local idols vanish can be so distressing. For all kinds
of reasons, chain restaurants shut down, whether it is steep rivalry, higher rents or a
raging global pandemic. We have counted the numbers of restaurant locations that left
last year and are set to close in the months ahead, and we’re going to be sad to see them
go.

III. Analysis:

Based on the given premises, the pandemic still hit the Major Food Chains world wide
and will still struggling if pandemic will continues in 2021. After all, the pandemic will
change the service of these Food Chains. Still struggling but will continue to adjust for
new normal and will have back to serve food to people. Food Chains will be back in new
improved store but we have to prepare for the change services. According to Reinstein,
B. (2020), Experts forecast how the coronavirus will influence the struggle of the food
service to adapt to its new climate, while others will emerge over-forced to use delivery
services to still get restaurant food.

In seven main transitions, the long-term effects of coronavirus on foodservice customers

will be seen. Some of these changes are already taking shape as customers are trying to
adapt to their new climate, while as we transition to the post-Covid era, others will evolve
over time.

The seven metrics for improvement, overall, include:

1. Increased use of delivery as a percent of total food service sales.

2. Food-safety-first mentality.

3. Expanded sanitization behavior.

4. Curbside pick-up will become more popular.

5. In-store self-ordering will be reinvented to a no-touch solution.

6. Improved take-out or delivery services.

7. Expanded take out and delivery.

Foodservice operators now have the great job of responding to the behavioral changes
introduced to the market by COVID-19. Any of these changes are going to become more
permanent and require the operator to adapt. In addition, Foodservice operators will need
a seismic change in their operations, as well as in their overall market, while customers
are struggling to adapt. Those that are fast to adapt will lead the way for the industry to
follow in times of rapid and dramatic change. Although so many clients, operators and
producers are certainly taking it day-by-day, it is important to note that in order to decide
the best course of action to move forward, we must all look to the future.

Kelso, A. (2020), said that A devastating article in last month’s New York Times forecast
that because of the COVID-19 crisis, as many as 75 percent of independent restaurants
might permanently close. A drastic change in menus is one expected outcome of this
supply chain wild card. Usually, restaurants, especially independents, do not overhaul
their menus very often, as it is an expensive and daunting process.

According to Nuestro, E. (2020), It is important to ensure the quality of food production

during a health crisis, as sanitation is more critical now than ever. It is important to
reduce the interaction between food and those who prepare it, so reimagining the process
of production is a crucial step.

Recommendations:

The following recommendations have been made for the Improvement of the Food Chain
Restaurants that are now currently closed but will soon operate.

The Analysis above shows the risk of these Food Chains regarding on how they can
maintain safety protocols. That is why the closure of these Food Chain Restaurants
recommend to improved facilities, follow safety protocols and maintain the Self ordering
with No-touch solution for their re-open in the middle of the Pandemic. Also it must
improved the take out and delivery services so that the interaction to the store will
become lessen. Protocols should be followed as well. This is a food chain restaurant
where people tend to remove their face shield and mask so that they could enjoy the food.
This is like having a high risk of being transmitted by the virus. Here in the Philippines,
the Department of Trade and Industry (DTI), have given the new protocols regarding to
these dine in Food Chains Restaurants. According to Crismundo, K. (2020), It is also
advisable for fast food and restaurants to have menus of food per table and to take orders
without touch. Customers shall be escorted to an assigned table with the corresponding
number for single-use table menus upon entry, choosing the order by reviewing the menu
options placed on the table; for non-single-use menus, customers shall be escorted to the
assigned table with the corresponding number upon entry, selecting orders from the menu
placed on the table, as stated by the DTI. Food bars, condiments, and utensils are also not
permitted in the buffet and self-service areas. The DTI also allows clients to fill out a
health checklist that will be issued at the establishment’s entrance. Clients with a
temperature greater than 37.5 degrees Celsius, or those with a cough, cold, or shortness of
breath, can be refused by establishments. Similarly, the DTI urged these institutions to
have alternative payment methods.
These are just the rules of the DTI towards those restaurants that offer dine in to prevent
the transmission of the virus. This serve as the recommendation as well so that people can
dine safely and worry no more. But of course we can’t tell the instances. This is an
invisible enemy of the land that we are facing right now. It is also advised to learn to
cook healthy stuff at home rather than to dine in to a fast food chain restaurant. Don’t just
rely on food chains restaurants. Don’t make dine in to a restaurant and later on became a
hobby. The staff there, employees and service crew work hard and facing the risk
wherein they wish to stay at home instead of going out work. This is a pandemic. And
your only responsibility is to stay at home for the sake of others. Go out if it is necessary.

Conclusion:

As a conclusion, some of these Major Food Chains Restaurants aren’t close for good.
Some of these are working in improving their facilities and to have a drive-thru not only
dine in because of the situation right now and the pandemic we are facing. They the
major rule to help the costumers plan and suggest idea which can make them safe during
dine in. They must also learn to communicate to the costumers. Offer them if they want
to take out instead to prevent the worst. Food chains restaurants today did their best to
reassure strict guidelines and follow protocols and sanitization. These will allow the
consumer to trust them with their service. As a customer we have the goal to keep
everyone safe and that is by following the guidelines. If you don’t follow and push
yourself to take a seat and eat this food chains restaurants will be automatically closed
according to the protocols stated. Also it is much more better if we don’t stay too long to
the restaurant, whether it is a coffee shop, a fast food or a classy restaurant. Remember
since we are on a dine in, we tend to remove our mask. Much better to chit chat at home
and finish the food in your fastest way you can. The closure of these Major Food Chains
Restaurants depends on the attitude of their customer and how they are responsible
enough in this time of Pandemic. We are not just a dine in customer, we also have
responsibility.

Way Ahead:
The closure of some food chain restaurants are the idea of making improvements in this
time. They will invest more of the drive thru service and take out. The hardest of this is
they didn’t know when is the best time to recover, until vaccines came out. We have to
prepare for their changes for new normal, we still don’t have any idea when this could
end. Food chains restaurants has to maintain its strict guidelines towards their customer
during the pandemic. We can see the future that these Food chains restaurants will never
be the same. We might think that this is not the best time for business but those
restaurants that will still operate behind pandemic situation have been prepared for worst
instances. Good now there are food deliveries option that even you are in your house,
your favorite meal in your favorite restaurant will come to your doorstep so that you can
no longer go to the physical store. This will be the future of these food chains restaurants.
We don’t know nothing, who knows the worst will sooner come but one thing for sure is
the only persistent in this world is the changes.
References:

America’s Food Obsession, (2018).

Cohrane, C. (2020), These Chains are Closing the Most Restaurants. Retrieved from:
https://moneywise.com/a/these-restaurant-chains-are-closing-2020

Covid-19 Will Forever Change the Food Service Industry. (n.d). Retrieved from:
https://www.qsrweb.com/articles/covid-19-will-forever-change-the-foodservice-industry

Crismundo, K. (2020), DTI Issues Guidelines for Dine-in Fast Food Chains Restaurants.
Retrieved from: https://www.pna.gov.ph/articles/1104513

Feldman, E. (2015), Why the Restaurant Industry is the Most Important Industry in Today’s
America. Retrieved from: https://medium.com/@EliFeldman/why-the-restaurant-industry-is-the-
most-important-industry-in-todays-america

Jiang, I. (2020), Chain restaurants including Pizza Hut and Starbucks are permanently closing
over 1800 total locations during the pandemic. Retrieved from:
https://www.businessinsider.com/chain-restaurants-permanently-closing-600-locations-due-to-
pandemic-2020-5

Kelso, A. (2020), For Independent Restaurants Struggling To Survive The COVID-19 Crisis,
There Isn’t Much Of A Silver Lining. Retrieved from:
https://www.forbes.com/sites/aliciakelso/2020/04/21/for-independent-restaurants-struggling-to-
survive-the-covid-19-crisis-there-isnt-much-of-a-silver-lining.

Maze, J. (2020), Restaurant Chains Are Set to Close Thousands of Locations. Retrieved from:
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locations?
My MBA Guide, (n.d), Retrieved from: https://mymbaguide.com/chain-stores-characteristics-
classification-advantages-disadvantages/

Nuestro, E. (2020), With Malls Closed and Physical Distancing in Place, How Can Restaurants
Survive the Economic Setback Brought by the Deadly Virus? Retrieved from:
https://ph.asiatatler.com/dining/the-future-of-restaurants-in-the-philippines-how-fb-industry-can-
bounce-back.

Retrieved from: http://web.colby.edu/st297-global18/2018/10/29/americas-fast-food-obsession

Tarantino, O. (2020). 11 Major Restaurant Chains That Have Filed for Bankruptcy. Retrieved
from: https://www.eatthis.com/restaurants-file-bankruptcy-coronavirus.