The managerial behavior of restaurant operators in a time of crisis

Abstract

The COVID-19 pandemic is a crisis that poses a severe threat to business survival. However, a crisis was initially considered both a threat and an opportunity. It was argued that appropriate reactions to this pandemic should be regarded as having decisive effects on the future of businesses. For small businesses, however, it might be an opportunity to change their future. Therefore, from the perspective of small business management and focusing on the practical reactions of managers to crises, this research investigated the managerial behaviors of restaurant owners to neutralize threats and their relationship with their perceptions of the impact of the crisis and its consequences. Initially, managerial behaviors were divided into two groups: proactive and defensive. The empirical analysis revealed that owners’ positive perception of opportunities for changes leads to proactive managerial behaviors and business growth. However, a shortage of resources in small businesses might lead owners to be more defensive in perceiving the environment and choosing how to react. Based on these results, to increase the vitality of small restaurant businesses, it is argued that external support is required to reinforce the cycle of positive effects. With a basic set of information, it might be possible to get a better understanding about how small restaurants handle crises from the outside.