Predictions say that it may take nearly a year to recover* depending on the size of the business.
Large overheads like rent and salaries will effect the industry by at least 25-30%*. This figure is expected to go up to 80% with more Coronavirus cases likely to be reported in India.
Restaurants have seen a 45% drop in revenues on the back of the Covid-19 impact*.
This sector may witness major layoffs in order to curb losses.
Source: Economic Times; National Restaurant Association; FHRAI Expert.
Consumers are developing a dramatically heightened sense of what they view as safe. Food handling practices and a heightened awareness to know where their food came from, how it was grown, raised and processed.
Vegetarian in-take may increase as non-vegetarian food is under scanner due to COVID-19.
Hygiene and sanitation will influence the choice consumers make. Safety may take precedent over price.
Being safe, keeping my family, friends and relatives safe may be the drivers of this category. Eating out is a social activity so restaurants may become a place of group distancing rather than individual distancing.
For dine-ins the number of guests may have to be limited keeping social distancing in mind. Changing layouts so that distancing can be practiced.
Disposable cutlery could become a new norm. Carry-with-you cutlery which people can keep in their bags may come into being.
Regular updates to their customers on safety and hygiene may become a must. Videos of outlets may have to be put out for consumers to believe.
Using technology to make the experience contactlessordering, selection, re-ordering, payments through tabs and apps might take care of hygiene issues.
Focus may move to take-aways and deliveries. The Cloud kitchen module could be adopted by smaller businesses.
House parties will increase and therefore focus could also shift to catering. Delivery subscription model like Swiggy Super will be more appealing.