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March 20, 2020

Covid-19 impact: USHG lays off 2,000 workers

Restaurant company Union Square Hospitality Group (USHG) has laid off approximately 2,000 staff members as coronavirus (Covid-19) outbreak dried its revenue channels.


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Restaurant company Union Square Hospitality Group (USHG) has laid off approximately 2,000 staff members as coronavirus (Covid-19) outbreak dried its revenue channels.

The move comes almost a week after the restaurant chain decided to close all its locations temporarily while keeping its take-out services active.

Overall, the redundancies affect approximately 80% of its total workforce.

The lay-offs will affect the restaurant employees and those working in the head office.

USHG chief executive Danny Meyer said: “We have laid off more people today that we probably hired in the first 20-25 years we were in business.”

The company made the decision as restaurant closures have decreased its revenue, and continuing to pay non-working team members would have led to insolvency.

USHG operates more than 20 restaurants across multiple cities in the US.

As part of the measures undertaken to mitigate the impact of Covid-19 on the business, Meyer will forgo his salary, while other executive team members agreed to pay cuts.

The amount collected in the process and other contributions will be donated in employee relief fund. The fund will be used to support members of its staff facing financial difficulties.

Meanwhile, the number of Covid-19 cases increased to 14,000 in the US. Globally, the total numbers reached 244,000.

Free Whitepaper
img

What is the impact of China’s Zero-COVID lockdowns on economic activity, consumer goods and the foodservice industry?

While wanting to protect the country from being overwhelmed by Omicron, China’s adherence to a Zero-COVID policy is resulting in a significant economic downturn. COVID outbreaks in Shanghai, Beijing and many other Chinese cities will impact 2022’s economic growth as consumers and businesses experience rolling lockdowns, leading to a slowdown in domestic and international supply chains. China’s Zero-COVID policy is having a demonstrable impact on consumer-facing industries. Access GlobalData’s new whitepaper, China in 2022: the impact of China’s Zero-COVID lockdowns on economic activity, consumer goods and the foodservice industry, to examine the current situation in Shanghai and other cities in China, to better understand the worst-affected industry sectors, foodservice in particular, and to explore potential growth opportunities as China recovers. The white paper covers:
  • Which multinational companies have been affected?
  • What is the effect of lockdowns on foodservice?
  • What is the effect of lockdowns on Chinese ports?
  • Spotlight on Shanghai: what is the situation there?
  • How have Chinese consumers reacted?
  • How might the Chinese government react?
  • What are the potential growth opportunities?
by GlobalData
Enter your details here to receive your free Whitepaper.

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