Foodservice, in particular, has been severely disrupted by closures and restrictions and will continue to be affected even when other sectors are moving back toward some semblance of normalcy. Seating and spacing restrictions and mask requirements dramatically reduce the revenue generating capacity of restaurants and bars. No amount of takeout, menu redesign or pricing adjustments can fully compensate for the loss. Inevitable supply chain disruptions as food service businesses reopen, along with increased labor and operating costs on a percentage of sales basis will continue to affect profitability even with an uptick in sales from partially reopened dining rooms. Even in casinos, foodservice offerings have been significantly reduced. The other subsector most deeply affected will be concerts and events, likely the last subsector to reopen on even a partial basis. Public events and festivals, whether offered directly by the tribe or by communities in their surrounding area, are being cancelled well into the fall or even until next year. When they do finally return, smaller attendance, greater spacing requirements and reductions in ancillary amenities and profit opportunities are expected until and unless a vaccine or clear and long-term reduction of viral counts to negligible levels becomes widespread. Entertainment is a critical component in the gaming environment and a major driver of festivals that attract major influxes of people and dollars in normal times. Sporting events face the difficulties of transmission amongst contestants as well as amongst fans. At the professional level, financial and public pressure to resume will speed the process. However, at lower levels, tournaments that bring large numbers of families and spectators during all seasons are likely to remain curtailed longer. Lodging has been doubly affected by reductions in both leisure and business travel. While capacity restrictions are being put in place in hotels as well, loss of demand is the primary problem. Both leisure and business travel will return over time. However, both segments are likely to see changes in behavior patterns, including frequency of travel, types of facilities and amenities demanded, and price sensitivity. The shift toward vacation rentals such as Airbnb, VRBO and the like is expected to intensify once allowed to resume as kitchen facilities and private space separated from larger crowds become key selling points. Other leisure industry businesses are beginning to adapt and reopen. However, there are significant differences in risk factors and on-going restrictions depending upon the type of business. Bowling, golf, gun clubs, museums, fishing and hunting and the like have more flexibility in adjusting their operating models to create needed social distancing without severely constraining capacity. Arcades, waterparks, movie theaters, amusement parks and similar ventures will have greater difficulty in balancing safety measures with maintaining sufficient capacity to support minimum profitability.
∴ PROGNOSIS
69
Made with FlippingBook - Online catalogs