The pandemic killed 3,850 Ukrainian eateries last year, according to research by a local analyst The Restaurants of Ukraine.
As of March 2021, Ukraine has nearly 14,700 cafes, restaurants and bars, down from 18,600 in March 2020 when the pandemic first hit the country.
Now the eateries market is valued at nearly $508 million — 30% less than last year, when it almost hit $720 million.
According to the report, local eateries have been losing money because of the lack of foreign tourists that usually flock to popular Ukrainian cafes and restaurants, and quarantine restrictions that banned eating out.
During all three lockdowns, the government allowed cafes and restaurants to only provide takeout and delivery.
Although many businesses have quickly learned how to work with new rules and even launched their own delivery, many couldn’t cope with the falling demand.
During the lockdown in March-May 2020, all types of businesses, including delivery services, suffered financial losses, according to Poster, a Ukrainian tech firm that develops automatization systems for eateries and shops.
At that time, some enterprises lost up to 80% of their revenue, halted their business activities, cut salaries and laid off their workers.
Although the pandemic has undermined many local eateries, the industry was more resilient to the crisis than expected, said restaurant consultant Olga Nasonova.
According to her, the third lockdown that’s expected to run through April 16 won’t take a toll on the industry, which has adjusted to the crisis.
In 2021, Ukraine’s restaurants’ market could even start to revive, Nasonova said. More locations are now available to open a restaurant or bar and rents have decreased.
The most effective way to build a business in this industry is to work both as a shop and as a bar or cafe, she added.
The Ukrainian government is helping small businesses endure the crisis. Some enterprises and their workers can apply for one-time economic assistance of Hr 8,000 ($283) offered for businesses that work in the quarantine “red zones.”
However, many experts said that more drastic steps are needed to get the restaurant industry back on its feet.
