The coronavirus pandemic has accelerated digital growth in the food service industry at a pace no one predicted.
Adoption of ‘Internet of Things’ technologies like remote sensors, analytical software, and omni-channel delivery platforms has been instrumental in helping to alleviate labor shortages, supply chain issues, and ongoing customer behavior changes.
While the accelerated advancements have been great, there is more to be done.
The pandemic is still here, likely long-term, and the same challenges from March 2020 persist.
The first year of the coronavirus pandemic, COVID-19, brought the restaurant industry to a halt, the likes of which haven’t been seen since World War II. Year two brought vaccine administration and eased restrictions on indoor dining, allowing customers to return to their favorite places.
Hope for normalcy was dispelled as new variants emerged and impeded the rapid recovery once anticipated.
More than halfway through year three, with booster shots offering improved prospects of some semblance of normalcy, the omicron variant has spread rapidly, and threats continue to dim hope of progress.
It is likely we will continue to see issues such as spikes in infection rates, labor shortages, supply chain disruptions, and price increases, all brought on by the pandemic affecting restaurants.
According to OpenTable, in early 2022, customer concerns over the omicron variant caused table reservations to drop by:
These figures are in comparison to the same timeframe in 2019.
The National Restaurant Association reports that nearly one in six restaurants closed in the first six months of the pandemic.
That’s nearly 100,000 restaurants and bars that have shut down since the start of the pandemic.
Even chain restaurants like McDonald’s have been affected, having to close some locations due to labor shortages.
For those not closing, they relied on takeout orders.
Food delivery services became the backbone of stay-at-home orders imposed by the government, but they also pose unique challenges.
People’s trust in the food-handling process and delivery methods, along with a demand for contactless transactions, were of utmost importance to those using restaurants' home-delivery services.
With the cusp of US supply chain disruptions nowhere in sight, it’s undeniably affecting in-store and takeout experiences.
Essential food service products may be out of stock or priced beyond profit margins.
From fresh produce to meats to paper products such as coffee cups, straws, and takeaway containers, restaurant owners continue to experience shortages and increasing prices.
For restaurants, this means jeopardizing a menu’s signature dishes, compromising meal quality for takeout orders, and/or generally disappointing customers.
Taylor Morabito, the owner of New York's famed Friend of a Farmer restaurant, said,
"I think the biggest challenge the industry currently faces is the drastic increase in food cost, specifically within the world of poultry, meat & fish. Products that used to cost $11 or $12 a pound have doubled &, in some cases, nearly tripled in price.
Unfortunately, with the current supply chain issues & rising inflation, I believe that restaurant owners and management will be navigating around this particular challenge for quite some time."
Shortages of essential equipment, such as HVAC units and their replacement parts, also require ongoing monitoring and maintenance of existing inventories to prevent failures and food safety risks.
Thankfully, the internet of things (IoT) and digital technologies like affordable temperature monitoring can help automate many aspects of supply chain management for restaurants and their suppliers.
In addition to supply chain issues, restaurants will continue to struggle with the labor shortage affecting all industries.
While hiring and retaining employees has always been an issue within the food service industry, it has been exponentially more difficult during the pandemic.
The initial closure of many restaurants led to former employees finding jobs in alternative industries.
Attempts to convince new and former employees to return have proven challenging due to reduced hours and tips, as well as the personal risk of infection and the presence of troublesome customers who, at times, can become violent when faced with mask and/or vaccine mandates.
Remembering that more than 900,000 people died in the U.S makes consideration for long-term solutions the top priority for those in the food service industry.
The number of employees willing to work is so low that some restaurants are forced to operate with shorter hours and fewer days.
"If you look at who is working in restaurants in 2019 versus today, there are about a million people who have disappeared," said Micheline Maynard, Washington Post columnist and author of the book "Satisfaction Guaranteed: How Zingerman's Built A Corner Deli Into a Global Food Community".
Pending the idea that restaurants continue to be understaffed, how can maximum productivity be achieved with fewer people?
With smaller teams and limited resources, restaurants must prioritize investing in technology that will optimize operations and help team members maximize time and efficiency while continuing to deliver a premium customer experience.
Sonicu currently supports dozens of food service clients with our simple and affordable solution that makes it easy to protect your inventory and streamline regulatory compliance.
The past two years have completely changed the way people think and function.
In some regards, it has also altered people's expectations of the restaurant business.
With contactless payment methods and online orders, people have become more dependent on technology than before. Surviving the pandemic and shutdowns meant restaurants offered enhanced discounts as many customers shifted to online or app ordering.
Now, in 2022, many customers are used to this and expect restaurants to continue discounting and offering extra reward incentives.
Much of the technology discussed, such as apps, third-party ordering, and direct online ordering, has been used for several years.
Unfortunately, COVID-19 forced the restaurant industry to exploit its use to a greater extent.
Now, this adaptability of technology is paving the way for recovery and growth.
Technology became the answer to many of the issues restaurants faced during the pandemic. The technological owners shifted their menus online and increased delivery to stay open.
While this is a positive trend for 2022, other issues must be addressed if the restaurant industry is to be saved.
Overall, 2022 is trending in the right direction, demonstrating the resilience of the restaurant industry.
COVID-19 pandemic exposes new challenges for restaurant industry - ABC News (go.com)
Trends Affecting The Restaurant Industry In 2022 (forbes.com)