Retail: Retail is one of the early indicators of a recession. During a recession, consumers typically spend less on everyday and luxury goods. This can lead to a drop in sales for retailers.
Restaurants: During a recession, consumers may eat out less frequently, choosing instead to cook at home. This could lead to a drop in revenue for catering businesses such as restaurants and coffee shops.
Tourism: The recession may cause people to travel less, as they may view travel as a luxury expense. This could have a negative impact on the tourism industry such as hotels, airlines and travel agencies.
Real estate industry: a recession could lead to a drop in home sales as people may delay buying or selling a home. This could have a negative impact on industries such as real estate agents and developers.
FINANCIAL INDUSTRY: A recession may negatively affect financial institutions because people may reduce activities such as borrowing, investing and opening bank accounts. This could lead to a drop in revenue for banks and other financial institutions.
Of the industries mentioned above, the restaurant industry is probably one of the most vulnerable. This is one of the reasons why coffee shops and fast-food restaurants like Starbucks may face downside risk during a recession.