Restaurants are facing a unique situation in 2020 and must rise to the challenge to keep business up. The value added tax didn’t affect them directly, because they already charged sales tax, but the customers’ budgets are affected by the VAT.
The University of Costa Rica did a study that showed 32.8% of families in the country have cut down on meals eaten outside the home. Cuts were also made in recreation and entertainment.
Applebees recently closed because of profitability issues. Restaurant managers in other chains around the country are not worried by this news or the results of the study done by UCR rather they are seeing these issues as a call to innovation.
McDonalds, Subway, and KFC are among the chains taking strides to attract customers. They are working with food delivery services like UberEats. They are also offering greater quality options at more affordable prices, hoping this will increase sales in 2020.