Financial impact of COVID-19 lockdown restrictions on Small, Micro and Medium enterprises in the restaurant industry (Gauteng)

Purpose: The study presents a comparison of the financial impact of the COVID-19 lockdown restrictions on Gauteng-based SMMEs in the restaurant industries using a South-African bank’s point-of-sale (POS) de-identified data. Research: The positivist research philosophy was preferred. Due to, the participating bank's existing data, quantitative research method applied. This research study comprised both exploratory and descriptive objectives. It was longitudinal in nature because it investigated the financial impact of the COVID-19 lockdown restrictions on Gauteng-based SMMEs in the restaurant industry over time (April-May 2020 and April-May 2021). The longitudinal time horizon was from April 2020 to May 2021 (a year into the lockdown period). Results: The study found that the restaurant industry was adversely financially impacted, based on turnover sales transacted through POS devices during the two periods of April to May 2020 and April to May 2021. According to the study, during the COVID-19 pandemic lockdown periods Gauteng-based SMMEs relied heavily on the benefits of the Fourth Industrial Revolution (4IR), such as POS devices, for customer payments. Conclusions: Based on a monthly turnover comparison the restaurant industry had the second-highest turnover, following the supermarket industry with the highest turnover. When the alert level 5 lockdown was declared on March 23, 2020, some restaurants shut down temporarily while others adjusted their operational protocols to safeguard their employees and customers. Study originality: However, the restaurant industry turnovers increased in 2021 compared to 2020, indicating that there was some adaptation or rather innovation around mitigating the COVID-19 pandemic challenges. Practical implications: Restaurants took additional measures by persuading consumers to order ‘takeaways’ online through delivery App platforms. The restaurant industry COVID-19 digital strategies remain relevant in South Africa today even after the removal of the COVID-19 lockdown restrictions because customers still make use of these digital services.