The COVID-19 epidemic is destined to change the DNA of a lot of industries. But the hospitality industry has been hit the hardest.
According to the National Restaurant Association of India, which has almost 500,000 restaurants under its umbrella, these are unprecedented times. Majority of restaurants in India won’t be able to survive without government intervention if this downward spiral lasts even till May 2020.
Restaurateur Ashish Dev Kapoor who co-owns some of the biggest restaurants, including Whisky Samba and The Wine Company, says that while the primary focus is employee health and safety, it’s a race against time where the business is concerned. Very soon, there will be a huge financial worry as we’re all dipping into reserves. Fixed costs such as salaries, rentals, GST and EMIs remain constant, while the revenue has gone down to zero.
To address this concern, some F&B establishments have taken refuge in creatively tweaking their business models. "In light of the recent situation, it’s been difficult for our guests to utilise the hotel services. Considering that, we’ve arranged to have food from our award-winning restaurants such as The China Kitchen, La Piazza, Tk’s Oriental, Café and Sidewalk delivered to our guests within Delhi," says Julian Ayers, General Manager, Hyatt Regency Delhi. Trends that may develop post-coronavirus, according to industry experts:
Dining at home
Enoki has started contactless deliveries. "Our fully sanitised riders place your order at your doorstep and stand six feet away until you have collected it," says Mansher Duggal, Owner of the Asian food delivery chain, along with Tobiko. Punjab Grill also has started home deliveries and take away from its Janpath and Noida outlets. Domino’s has mobilised and trained its delivery boys aka Domino’s Food Soldiers for zero contact delivery.
Cost consciousness
While India has always been a price-sensitive market, post-coronavirus, only those restaurants may survive which are able to provide a high-quality product at the right price. Internal processes within restaurants need to become more robust to optimise the supply chain and eliminate food wastage. Also, we might see an upsurge in the adoption of platforms like Zomato, Dineout and Eazydiner as consumers will scout for substantial bargains.
Robotic bars and service
Bars like The Tipsy Robot in Las Vegas where robots mix drinks as per consumer preferences is a good example of the potential success of the concept. It supports the idea of social distancing and touch-less service.
Temperature check
Thermal checking is largely limited to airports, but once the extended lockdown gets over, restaurants may adopt this preventive measure for a long period of time to reassure guests. It will happen for both staff and customers. While this is not a foolproof mechanism against infections, it will definitely calm the nerves of diners.
The need of the hour
These are testing times for all. 50 percent restaurants may shut if lockdown extends more than May 3. Food delivery companies have also reported considerable loss. Given these circumstances, relief on rentals, EMIs and taxation will go a long way to help the F&B industry tread the very slow but steady path to recovery. "We also need to lobby to ensure that businesses that had opted for loss of business insurance get relief from insurance companies," says Kapoor.