Restaurants Brace for Fallout Due to Omicron Effects

Posted on 26 January, 2022

January 20^th marks the second anniversary of the first lab-confirmed coronavirus case in the U.S. What followed was a tumultuous period that led to shutdowns in many locations. The restaurant industry suffered a tremendous blow. Though the restaurant industry is competitive, COVID has increased the odds that a restaurant won’t survive.

By the end of 2021, an estimated 80,000 establishments have temporarily or permanently shuttered their business. For those that remain open, their businesses are more vulnerable than usual. Restaurant insurance offers assurance that they can survive the threats they face and focus on innovative measures to ride out the current coronavirus wave.

Omicron’s Takeover Around the World

Scientists first identified the omicron variant in South Africa, where it quickly spread among even those previously infected. Before long, the variant started dispersing within the United States. Though it appears to produce a less severe illness, it seems more contagious than delta. The most likely reason for the high transmission rate is that it evades current immunity protections (whether from previous infection or immunization).

Omicron’s Effects on Restaurants

The current COVID wave, fueled primarily by omicron, did not lead to shutdowns, but it still spells trouble for the restaurant industry. Though many restaurants remain open for business, they still struggle to maintain operations due in large part to labor shortages and supply chain issues.

Labor Shortages

Before the current wave, restaurants faced a shortage of workers that led many to reduce hours of operation and even close on days when they couldn’t adequately staff their establishments. The omicron variant impacts restaurants already struggling to keep their businesses staffed.

Though omicron produces a less severe illness, people still get sick. When the staff gets sick, they can’t report to work. What’s more, the high transmissibility of this variant and the fact that it evades immunity means that more workers are bound to catch it once it is introduced into the environment.

Supply Chain Issues

Another factor that many restaurants face is that omicron’s rapid spread around the globe has led to a crippling of the supply chain. The same labor shortages impacting restaurants are also hitting every other industry, causing a chain reaction from farming and manufacturing to transportation.

As with the restaurant industry, many other businesses have already struggled to meet demand due to labor shortages. Add to that new fears about going to work amid a wave as aggressive and far-reaching as the omicron wave, and you get compounding labor shortage impacts.

Restaurant Insurance

At a time filled with so much uncertainty in the restaurant business, owners have few safeguards they can count on to mitigate financial devastation from the risks they face. Having the right insurance can alleviate some of the burdens through benefits such as workers’ compensation, general liability and business interruption protection. These coverages are imperative for restaurant owners in the time of omicron.

About Byrnes Agency

At Byrnes Agency, we offer insurance solutions that can be tailored to meet your specific needs. Whether you’re looking for personal policies or commercial coverage, we have the right coverage for you. To learn more about our products, contact us today at one of our two locations.

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