502 Bad Gateway
is food services and drinking establishments, which accounted for 7.3% of all jobs
for eating within the restaurant, not for to-go orders. It was estimated that this
subsector accounted for 36% of the broader industry.
502 Bad Gateway
by Wichita State University's Center for Economic Development and Business Research.
This vulnerability stems from government agencies at the national, state and local
levels, limiting public gatherings and encouraging social distancing. The following
examines the economic value of the industry and the potential impact on the Kansas
The most affected subsector within food services and drinking places is full-service
To estimate the economic impact of this sector in Kansas, two scenarios were created.
The first assumes that the full-service restaurant industry will have a 60% reduction
in demand for one month. The other assumes that the sector will have a 100% reduction
in demand for one month due to government agencies mandating restaurants to close.
The 60% reduction scenario will have a direct impact on 14,500 jobs and $27.5 million
to be just under 18,600 jobs and $44.6 million in wages.
If all full-service restaurants shut down, the direct job loss would be greater than
36,000, with an additional 10,100 jobs impacted within the restaurant supply chain
and $68.8 million in wages. In both scenarios, if the timeframes were to increase,
the jobs affected would not change, but the lost wages would continue to climb.
It should be noted that these estimates do not take into account other changes within
the Kansas marketplace. For example, one might expect that the reduction in spending
on full-service restaurants would at least partly be substituted by an increase in
efforts of turning such restaurants into takeout places. The net difference in the
impact on the Kansas economy was not estimated.
Barton School of Business.