Comprehensive Project: Impact on the Restaurant Industry

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With the arrival of the new COVID-19 infection, there have been significant changes in people’s lives. Strict restrictions were imposed on visiting public places and quarantine measures were introduced in many countries of the world that obliged people to stay at home, thereby preventing the spread of infection. Because people stopped visiting shopping malls, restaurants, cafes, and many other public places, businessmen had to close their businesses or make changes. Undoubtedly, many areas were affected, but one of the most affected was the catering industry. People began to spend more time at home, refusing to eat in restaurants and cafes, and therefore there was a crisis in the field of public catering. Nevertheless, business people were able to find a way out of the situation and made changes to the work of their businesses.

Restaurants have undergone significant changes since the beginning of the pandemic. The National Restaurant Association estimates that since the introduction of quarantine measures in 2021, the restaurant industry has lost about $240 billion compared to 2020 (Rogers, 2021). This is because people practically did not leave home and did not visit cafes, restaurants, and coffee shops. In addition, more than 110,000 restaurants have closed without having the opportunity to revive their business (Rogers, 2021). This statistic is frightening because, due to the closure of public catering places, many people have lost their jobs and earnings. About 2.5 million people lost their jobs because restaurants no longer needed employees of their profile (Rogers, 2021). These losses were significant and global, as they led to a financial crisis not only for large restaurant chains and their owners. Also because the people who worked for them no longer had the opportunity to receive money and provide for themselves.

Against the background of the fact that people stopped leaving home, but the need to eat food from restaurants and cafes still remained, many companies switched to the Internet. To make it convenient for people to order food, restaurants have developed a suitable menu and created the possibility of fast delivery of orders to their homes (Rogers, 2021). Companies that already had a delivery option optimized their menu and also made delivery free even for remote areas of residence. In addition to restaurants that have improved delivery methods, applications that users could install on their smartphones also began to gain momentum. These applications include a complete list of public catering places, among which people can choose the one they like the most and make an order. Such applications are very convenient as customers can choose between different restaurants which accumulated in one program.

For the new format to work efficiently and support their employees, the managers offered jobs to former employees who worked in their restaurants before the pandemic. This had its advantages as people were hired who already had experience working in a particular institution, knew the menu, and could competently advise customers. However, some companies that decided to suspend the activities of their establishments were forced to pay various compensations to employees who had to look for a new job due to the closure of restaurants (Selling Power, 2017). This period was quite difficult for restaurant owners who had to close their cafes. For those who decided not to close but pay rent for the restaurant to remain in the same place, as well as for employees who no longer had the opportunity to work in the cafe.

Still, some budding businessmen saw new prospects and opened a cafe without seats. That is, by opening only the place where food should be prepared, hiring chefs and operators who take orders online or by phone. In such establishments, customers can choose home delivery or pickup, which significantly reduces the cost of equipping seats and other comfort conditions that restaurants used to offer. Thus, the restaurant industry quickly responded to the changes associated with COVID-19, which significantly affected revenues. With the help of the Internet, which allowed people to make orders online, they collectively brought in about $45 billion in revenue while reducing the cost of pulling up public spaces (Newton, 2021). Of course, this did not cover the losses caused to the industry by the pandemic, but it still helped many businesspeople to stay afloat and some new businesses to open and be successful.

Later, when the pandemic began to decline, the restaurant industry was allowed to open again. Despite this, certain restrictions were introduced, for example, the number of seats had to be reduced to maintain the distance between visitors. In addition, some restaurants have installed screens between those sitting opposite each other to reduce the possibility of airborne transmission. Some visitors were not pleased with the new format of their favorite cafes and continued to purchase food via the Internet and delivery. Moreover, to prevent the spread of infection, the temperature was measured at the entrance to people, and if it exceeded the established norm, the visitor was not allowed into the cafe. The restrictions imposed did not contribute much to the recovery of the food industry for various reasons. People began to prefer to spend time at home ordering food from restaurants. Furthermore, some feared that even despite multiple measures, they could still get infected by those visitors who were already carriers of the virus.

In addition to the restaurant industry, the pandemic has shown a significant impact on the transformation of the entire food-related sphere. Thus, grocery stores switched to an online format that allowed people to order groceries at home. Large retail chains have created online catalogs of their products with the help of which people could choose and put the necessary products in the basket. This innovation has also proved successful, as by evaluating the convenience of ordering goods online from home, customers save a lot of time. At the same time, they receive all the necessary goods directly to the door of their home.

The Internet has also made it possible for people to order products from stores or restaurants using QR codes. People just need to point their phone at the QR code, and they will get access to the restaurant menu or product catalog and will be able to order what they need in a couple of clicks. Convenience also lies in the fact that people can book a table quickly and without unnecessary worry and discomfort. This innovation was introduced for visitors to reduce the time spent in a public place and thereby reduce the likelihood of the spread of coronavirus infection. Even after the covid restrictions were lifted, people continued to use the QR code system.

Although some restrictions were introduced that inconvenienced consumers, people nevertheless adapted to the new conditions, and some retained their commitment to eating at home. Various enterprises decided to regain the trust of their visitors and regularly disinfected and cleaned the premises, as well as installed multiple screens on the reception desks and other interior elements. Although people missed visiting public places, some still appreciated the convenience of ordering groceries and food from restaurants right at home. The management of restaurants, cafes, and bars needs to prioritize or reorganize the space to reduce the cost of renting premises or to regain visitors ordering food directly in the restaurant itself.

The coronavirus pandemic has clearly demonstrated the instability of public catering facilities. The problem is that people may simply be prohibited from visiting restaurants and cafes, and thus some of them may close, unable to withstand the burden of payments without income. In addition, due to the introduction of COVID restrictions that led to the closure of restaurants, there was a significant turnover of staff. People were dismissed or sent on unpaid leave, which led to the impoverishment of some segments of the population. The Internet made it possible to restore the functioning of restaurants and cafes, and also gave some people a job in the order reception and delivery service.

The transformation should be to ensure the stable functioning of Internet programs and applications for work. The main forces should be directed precisely so that people can order food over the Internet and other people from the catering sector have a stable job. Owners of restaurants and cafes can reduce the number of public places with seating and equip a kitchen that will expand the menu and prepare high-quality dishes. In addition, it is crucial to make the interface of websites and applications convenient and practical so that people can easily order their favorite dishes and try new products.

The Internet provides many opportunities for people who own a restaurant business. Thus, the company can form favorable offers for ready meals for hospitals and other government agencies. Customers will order a certain required number of ready meals and then pick them up on their own or by delivery. This will enable the owners of the restaurant business to earn income, and employees will have a job since several cooks need to be included in the process of preparing many dishes, and delivery needs employees. The management of the institutions will be able to make an order via the Internet, where one can specify the number of dishes, and the composition. Moreover, they can see the calorie content, as well as the number of proteins, fats, and carbohydrates that may be necessary for some people, for example, who are being treated in a hospital.

Further activity and operation of restaurants will depend mainly on what decisions will be made by the leaders. Some managers of restaurants, cafes, and grocery stores who will be able to combine the effectiveness of the Internet and seats directly in the cafes themselves will be successful. It is imperative to motivate the team to work effectively both inside the restaurant and in the order delivery service (Selling Power, 2019a). It is also essential to take the maximum necessary actions that will help in the future to ensure resilience against various crises such as the coronavirus pandemic.

Despite all the convenience of using the Internet to order food from restaurants, there are some problems. One of the problems is the growing number of low-quality food products that are sold via the Internet. Thus, the European Commission has created a plan that was aimed at quality control of food products sold via the Internet (Lattanzi, 2020). The purpose of this commission was to search for counterfeit products that could have a negative impact on the health of the population. Thanks to the actions of the commission, many low-quality products were found that were sold online.

Further activities of the commission were aimed at eliminating the identified problems and unscrupulous suppliers of products. This problem has not yet been fully resolved since the commission’s actions are not fully defined and the risk of unsafe food consumption by the population remains (Lattanzi, 2020). The heads of state nevertheless introduce various rules and control over compliance with food standards that will be implemented via the Internet. This is very important for the development of the catering industry, not only in crisis situations but also in regular times. People will be more willing to purchase products via the Internet if they are confident in their safety, and thus the catering sector will be maintained at the proper level.

Despite all the existing difficulties, people have adapted to the new conditions, and even after the removal of covid restrictions, they continue to work actively. The Internet has provided good opportunities for the development and strengthening of the restaurant business. The main goal of many people in business at present is to strengthen and stabilize the operation of websites and applications for ordering dishes. This is necessary to create protection against other possible crises like the one created by the coronavirus. Some restaurants preferred to leave only the kitchen and a small pick-up point to reduce the cost of renting premises with places for customers. One way or another, leaders must activate all their professional skills and knowledge to be ready for various obstacles and adequately cope with them (Selling Power, 2019b).

In conclusion, COVID-19 brought significant changes in people’s lives, as quarantine measures were taken that led to the fact that some types of businesses had to be closed. The restaurant sector has suffered greatly, as strict restrictions have been imposed on it. People were not allowed to visit public places, including cafes, which led to the closure of some areas of food, as well as to the fact that many people lost their jobs. Nevertheless, the most influential leaders found a way out of this situation, which consisted in using the Internet. Convenient websites and applications were created that allowed people to choose dishes and order their delivery without leaving home. This had a beneficial effect on the restaurant industry and also helped some people get their jobs back.

Thanks to the Internet, even in the post-covid time, people continued to order food at home and enjoy their favorite dishes. Although there are many advantages, there are also some disadvantages, such as falsifying products, which can harm the population’s health. Nevertheless, the heads of state ministries are working to ensure that people receive high-quality products ordered via the Internet and applications. By eliminating this problem, cafe managers will be able to attract more customers who would prefer to order food at home rather than expose themselves to the risk of infection in a public place.

References

Newton, E. (2021). Coronavirus will have lasting impact on restaurant industry. Food Safety News. Web.

Rogers, K. (2021). Restaurants staged nimble responses to Covid’s blows in 2020, but 6 years of growth were wiped away. CNBC. Web.

Selling Power. (2017). How to Improve Sales Compensation Plans [Video]. YouTube. Web.

Selling Power. (2019a). Keys to effective sales coaching [Video]. YouTube. Web.

Selling Power. (2019b). What sales managers need to prepare for 2019 [Video]. YouTube. Web.

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Comprehensive Project: Impact on the Restaurant Industry

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