The world’s latest crisis - COVID-19 - has taken over our lives, irreversibly shifting our economy, society and lifestyle. But how has it affected the foodservice industry – and what big changes are on the horizon? Find out more about how coronavirus has impacted our industry and what foodservice operators should consider when adapting their business to life as our ‘new normal’.
Though the pandemic is still in its early stages, we’ve already seen a considerable shift in how consumers are getting their food, and how local restaurants and foodservice providers are responding.
One of the biggest shifts has been that of consumers turning to local farms for their fruit, vegetables, meat and dairy produce. While grocery stores have experienced severe shortages in supply, farms shops have been able to offer local shoppers a steady stream of fresh goods.
Many local farms now also offer quick-turnaround delivery or contactless collection (with impressively short lead times), which has been a key advantage for those who are at-risk or quarantined at home. Grocery stores, on the other hand, have been unable to keep up with demand, leaving many without a suitable delivery option for weeks, if at all.
Another big advantage of local produce is that people know where their food is coming from, which not only helps them feel more secure about avoiding shortages from hard-hit countries, but also helps them contribute to the local economy, supporting local businesses that otherwise might not have been able to ride out the storm.
It’s no secret that the foodservice industry –and hospitality industry as a whole – has been heavily impacted by the containment measures imposed by governments. But many restaurateurs have been quick to adapt their business model to offer their customers more flexible, pandemic-friendly dining options. This has caused a surge in take-away and delivery service options, not only from quick service or fast-casual restaurants but also from higher-end restaurants.
While the commission fees of delivery service providers (which typically reach as high as 30%) can be off-putting for many restaurateurs, there’s good news on the horizon. Many delivery services are adapting their business models by reducing or eliminating their fees or opting for a flat-rate, subscription option so restaurants can get a better return on their margins.
But what about food safety concerns? Most restaurants have implemented stringent health & safety regulations to protect both their staff and their patrons – covering everything from sourcing, to preparation and service. In China, foodservice operators like McDonald’s have responded with contactless pick-up options where customers don’t have to make any contact with the staff.
As many international chains such as McDonald’s, Subway, KFC and Burger King have decided to close stores altogether, there’s a growing opportunity for small, independent businesses to fill the gap. These businesses are more agile and flexible as they employ fewer staff (often from the same family), and are therefore able to react quicker to serve local customers. These customers are likely to spread the word throughout their local communities, further boosting the success of these businesses and building a loyal customer base that’s likely to stick around well after the dust has settled.
Food and workforce safety will remain a key issue during – and beyond – the ongoing pandemic. While the good news is that there is no proof of COVID-19 transmission from food or food packaging, restaurants will still have to put in place stringent new safety measures to protect their staff and customers alike.