Tough times open up new opportunities- in the Food and Beverage industry

The pandemic was a true test to one’s mettle, individual or a corporation. It was no different to the hospitality industry, which wasted no time to regroup to look at opportunities to sustain its food & beverage services  which is one of its mainstay businesses.

Like the old adage goes – Tough times open up new opportunities. Having reached clarity on the approach, many hotels decided to try food delivery and offering their menus on delivery platforms, to salvage and sustain some commercial outcomes, given that Food and Beverage businesses with in-dining experiences were closed, and that accommodation Rooms business suffered severely due to the closure of borders/airports/stations etc…

With a gamut of learning, given the paradigm shift in their approach to business, they adapted quickly to new processes, technology, packaging, on-time delivery and nutrition focussed redesigned menu.

Packaging took centre stage to ensure delivered food retained its taste, temperature, quality and consistency. This also implied that the post pandemic normal will see a shift toward eating at home more often, which means cooking, take-away or delivery. Therefore hotels will see this approach as a long standing and sustained business model. This diversification will also propel experimentation with food bundles and DIY meal kits or even luxurious in-home chef visit experiences as an alternate to high end restaurant dining.

Many hotels also retained their staff within their premises that helped mitigate infections to a good extent, given that movement within the city was heavily restricted. This also resulted in ensuring safety and hygiene to avoid community spread.

Hotels also complied with strict adherence to covid norms and enhanced hygiene protocols with all stakeholders, vendors and delivery partners.

Technology played an important role in implementing online ordering, contactless pick-up and delivery, QR code menus and SM advertising to stay competitive in the market place.

Unique promotions on the Social Media platforms that was also free of charge enabled creative advertising of their products to communicate safe and hygienic delivery or in-restaurant dining. Online payments also enhanced the contactless nature of the dining experience.

Upon restrictions being lifted, restaurants continue to adhere strictly to covid protocols by sharply reducing contact that resulted in

  1. Reduced and spaced seating arrangements
  2. QR enabled menus
  3. Spaced buffet counters with manned service of items
  4. Contact less payments

Many cloud kitchens sprung up as part of new ventures while the existing restaurants and hotel brands also joined the bandwagon as an additional revenue stream.

Going forward, these concepts of cloud kitchens may well take a special place be it as a vertical of hospitality chains with a sustained revenue stream or even a significant chain of cloud kitchens across locations or as an SME business model.

 

Disclaimer: The views expressed in this article are those of the author and do not necessarily reflect the views of ET Edge Insights, its management, or its members

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