In 2019, there was a sudden outbreak of an infectious disease- COVID-19. It first struck a city in China and then rapidly spread across the globe, leaving no country behind. In Indian history, the sharp drop is the largest, but this may still underestimate the economic damage experienced. The restaurant business is one of the largest in the Indian service sector, accounting for approximately 3% of India’s GDP. and employing 7.3 million people, according to the National Restaurant Association of India.
According to NCBI, the restaurant industry had grown tremendously due to urbanisation and modernisation pre-COVID. However, in the post-COVID period, small restaurant owners are fighting for their survival, due to lack of funds and a shift in consumer choices. It has led to the closure of restaurants, unemployment, and adversely impacted the allied industries.
The pandemic began with a domino effect on restaurants, vendor networks and food producers.
Restaurant entrepreneurship is a challenging business, as it must continuously evolve to meet the consumers’ changing tastes and preferences.
Times are hard for the food industry overall now. COVID-19 has brought upon new challenges to the restaurant industry, which is already overcome with its challenges. Firstly, restaurants and cafes have had to retrain and hire new staff due to stricter guidelines and SOPs. Secondly, there have been lower margins. As incomes have decreased, items and prices of the items on the menu have also decreased. Thirdly, the introduction of safety and health procedures have led to higher operational costs. Apart from these major challenges, the pandemic has also led to supply and staff shortages, risks, delivery adjustments, rental costs, etc. Moreover, the problem of stark competition still persists.
The pandemic has overall had a detrimental impact, leading to a fall in earnings, sales, dine-in rates, as well as the morality and hopes. In the beginning, with delivery partners to the rescue, delivery rates superseded dine-in rates. The staff was cut down, and the menu reduced. Social media marketing played a giant role in promotions. There were drastic changes in the time and frequency of orders. A percentage of restaurants and cafes have shut down, and a majority of restaurateurs witnessed a fall in their incomes so drastic that they could barely meet their basic and personal needs.
To tackle the challenges, restaurateurs can follow some practical solutions. Firstly, the health and safety must be put first by following safety guidelines, like regular sanitization, social distancing, compulsory mask policy, no-contact experience for customers, etc. Secondly, with increased safety regulations, restaurants can strategically rearrange floor plans to maximise seating with gaps, open outdoor seating, etc. Thirdly, since delivery apps charge restaurants a significant 15-25%, restaurants can enlist their own drivers or encourage curb-side pickup by offering a small discount.
Although many restaurant owners have been hard hit, they have managed to get back on their feet. Restaurateurs have been taught a great deal and have learned to come up with creative solutions to cope up with the challenges. In the future, they can overcome the challenges that come their way.