The year 2020 looked like a roller coaster ride where businesses and people have seen many transformations due to the noble corona pandemic. People were confined inside their homes to prevent virus spread, whereas businesses were asked to close their operations for a while.
The pandemic has really affected the hospitality sector, especially the restaurant and travel industry. Besides, people’s usage of apps and smartphones has been increasing as it prevents virus spread and allows them to get things done instantly. From food and grocery delivery apps to gaming to online learning, there is a constant surge in apps usage.
Indeed, modern tech solutions help businesses to cope with this crisis. Every business is taking advantage of technology and digitization to stay afloat in the business world, so how can the restaurant industry be left behind? The restaurant and dining out culture also experienced the major transformation of demographics and customer habits. From ordering online to takeaway to contactless payment to virtual kitchen concept- there is a lot of cooking in the food industry.
How Restaurant World Will Look Like After Corona
Due to the pandemic, the global economy is shaking; people are losing their jobs while several businesses are finding new ways to survive amid this critical situation. However, the restaurant industry is implementing technology to stay afloat.
Although restaurant revenue diminished drastically due to the pandemic, several facts and figures help you understand everything is not well in the food industry.
- Pubs and small restaurants are hit the hardest as sales dropped by 80%
- Overall, more than 35% of restaurants have implemented technology and start using social media to cope with loss.
- 76% of restaurant staff stopped working completely- however, half of them are now back to work.
- Online delivery and takeout are helping restaurants, and luckily, they have seen a 42% revenue hike.
According to the research of GlobeNewswire, here you can see, there has been a surge in demand for different food delivery apps. Restaurants can most benefit from these apps as they can boost sales while minimizing overhead costs. On the other hand, the customer’s inclination towards online ordering has been increased during the pandemic.
Thus, it is clear that technology has given a big boost to the restaurant industry. Now, let’s discuss in detail what the restaurant industry’s landscape may look like for the years to come and how customers’ habits will change towards the way they consume food.
Mobile Ordering is Here to Stay for a Long
Over the years, smartphones and apps increase as it offers a great level of comfort and enables customers to get things done in a single click. At the same time, businesses are taking advantage of this approach and going digital to attract maxim eyeballs.
Many of us were panicking about buying food and groceries during the pandemic, but thanks to food and grocery delivery apps that let customers buy everything quickly. Food delivery apps such as Zomato, GrubHub, Doordash, UberEats, etc., have experienced massive downloads during a pandemic and rising usage.
You might get shocked, but according to the research of eMarketer, the online food delivery market will reach $151,526 million in 2021. This is why many restaurants are investing in delivery management software as it drives revenue, customers, and keeps the economy alive. Here are some thoughtful reasons why restaurants should offer mobile ordering,
- It increases revenue
- mitigate the food business from closure
- Promote social distancing
- Makes online presence strong
Well-known food delivery apps have also introduced a contactless delivery policy to place orders without any hesitation.
Touchless Payment Technology
In order to prevent virus spread, restaurants have adopted contactless payment options. Moreover, before the pandemic, most customers were comfortably using digital payment options, and according to Juniper Research, more than 53% of the global transactions will be contactless within five years. Taking into consideration the current trend, restaurants are offering multiple digital payment options because they are:
- And offers the utmost security
There are a couple of reasons to opt for touchless payment options, such as its safer and prevent virus spread, more secure as data is encrypted, and the most preferred way to make a payment because GenZ usually no longer prefers to carry cash. Consumers’ habits are changing, and restaurants are responding in kind.
Growing Popularity of Ghost Kitchen
As mobile ordering and usage of food delivery apps skyrocketed, restaurant operators are also adopting emerging concepts that boost revenue and make it easy for them to increase foot traffic to actual restaurants. In the coronavirus battle, the restaurant industry adopts new and relevant approaches that keep them afloat to fight with it.
Ghost kitchens are also known as the dark kitchen or virtual kitchen, where restaurants are only bound to prepare and deliver food. They don’t have a dine-in facility as it reduces expenses related to rent and labor.
They have to invest in the right delivery platform so that customers can easily place and track orders. Virtual kitchens are becoming another sales channel for restaurants as it minimizes overhead costs and increases profitability altogether.
Ramp Up Your Digital Marketing Practices
People are using social media these days like never before. Social networking sites like Facebook and Instagram have become another marketing channel for restaurants where they find all kinds of demographics and connect with many customers.
Usage of social media during pandemic has increased, so it is high time to go for paid advertising on digital platforms such as Google and Facebook. You can also list your website on Yelp and TripAdvisor to help customers find the best place quickly and make your online presence strong.
Maximize Your Restaurant Business’s Growth Through Digital Options
Whether we talk about online ordering, mobile ordering, contactless payment, or ghost kitchen concept- one thing is for sure, adopting a modern technology solution is the only answer and weapon to mitigate the loss that occurs due to pandemics. Finally, we can say that the future of the restaurant industry is digital.