The problem is extremely urgent. The hotel and restaurant industry occupies an important place in the world economy. With the spread of quarantine restrictions caused by the Covid-19 pandemic, a large proportion of businesses go bankrupt and close. To support the hotel and restaurant business, it is necessary to optimize its operation. The purpose of the article is to find out the impact of the coronavirus pandemic on the hospitality industry, ways to optimize the operation and the expected results from the introduction of innovations. The methods of work are comparison, analysis, and synthesis. According to the results of the study, since February 2020, hotels in the United States have lost more than 4 46 billion, and 4.8 million jobs in the hospitality and recreation sector have also been lost. In 2020, the hotel occupancy rate was almost twice as low as in previous years. Based on the experience of large companies, we can draw conclusions about the Basic Rules for improving the demand for services and goods of hotel and restaurant establishments. When the strategy of business recovery in the hospitality industry is followed, when it is clearly visible that the company complies with security requirements, introduces innovations for the development of the Enterprise, people begin to trust and return to the usual pace of life. In general, modern enterprises of the hotel and restaurant sector are in a rather difficult state due to the situation that has developed in the world, in particular, the existing Covid-19 pandemic. You also need to be flexible and adapt to the new realities of our time, namely the digitalization of the modern generation. Compliance with guest notification protocols, use of a contactless system, constant communication with potential clients. The introduction of innovations in the hotel and restaurant industry helps to win the trust of the guest, which is an extremely important aspect of hospitality. The expected results from the introduced innovations are, first of all, an increase in the share of travelers, the return of their trust and safety. Following all the above rules, the flow of guests in the hotel and restaurant industry will significantly increase in the near future.