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How the restaurant industry is coping with the COVID-19 outbreak

COVID-19 outbreak has had a major effect on the restaurant industry in India and around the world as revenues have fallen by nearly 80 percent, endangering millions of jobs. Though the situation looks bleak, the entire restaurant industry across the globe has rallied together to address and overcome the impact that COVID-19 has had on the restaurant business

In this blog, we will cover how the restaurant industry around the world is fighting against the impact caused by COVID-19 by implementing measures and initiatives that are helping them stay afloat amidst challenging times.

COVID-19 impact on the restaurant industry

The restaurant industry in India has an annual turnover of roughly Rs 4 lakh crore generating direct jobs for over 7 million Indians. But with the country going into a 21-day lockdown, many restaurants have closed their operations. The government has however listed food delivery as necessary and allowed food delivery operations to continue. Restaurants listed on online portals could operate in some capacity. Few state governments have tied up directly with Swiggy and Zomato to ensure food is being delivered to the ones in need.

Zomato has expanded its Zomato gold plan to its current users by two months and not only that Zomato partner restaurants will now be able to take advantage of loans to overcome this difficult period. Table reservation platform, Dineout has come up with restaurant gift cards that allow customers to buy gift cards online and use them once the situation gets back to normal, this eases the cash crunch faced by restaurateurs in this difficult period.

One of our customers, Nothing but chicken creating awareness that COVID-19 is not transferred through food, in tough times it is important to communicate with your customers

COVID-19 is not transferred through food, as opposed to other viruses. India, being a country where people, particularly millennials, are obsessed when it comes to tasting new cuisines or ordering food, so it is highly expected that the restaurant industry will return to its feet in no time after the pandemic has stopped and deadlocks lifted.

How does restaurants in the USA operating amidst COVID-19 breakout

The restaurant industry in the USA has also been hit hard by the COVID-19 pandemics with the government mandating that restaurants can only operate through takeout or delivery. 

Restaurants across the US including some of the popular fine dine restaurants who have never done deliveries before have quickly adopted to home delivery and take away model to serve customers and ensure business continuity during this tough time.

restaurants covid 19
Restaurants in the USA are operating through delivery and take away model

Lots of restaurants have started to convert parking spaces into a makeshift drive-thru and have tweaked their menu’s based on their existing inventory and include items that are delivery friendly. Doing this has reduced operational costs because while you work through your frozen and dry storage items, you won’t have to order as much new inventory and can operate with existing inventory and also make some business.

Although it is testing times for restaurants, By switching to deliveries and takeaways, restaurants who have not done deliveries and takeaways have now explored a new channel of business and will be able to increase their revenue once the situation gets better in the coming days.

Here are few more tips on how restaurants can tackle COVID-19

“Never in a million years did I think we’d be doing a delivery.”- but our guests have responded well so far. We have so many great regulars who have supported us.

Misti Norris, Petra and the Beast, Dallas, TX, As quoted to Bonappetit

How is the interest amongst people?

restaurants covid 19
Normal life is slowly returning in china and citizens are already hitting local restaurants in good numbers

In China were the first COVID-19 cases was registered and quickly spread to the masses, the government took severe measures to curb the spread of the virus and went into lockdown lasting for more than 50 days as people were forced not to venture out of their homes. 

Local people during the lockdown stated to Aljazeera that one of the first things that they wanted to do once the curfew is lifted was to visit local restaurants and have their favorite dishes. As the number of cases started to reduce, Normal life is slowly returning in china and citizens are already hitting the local restaurants in good numbers, meaning restaurants are running packed over the last few days.

Will restaurants overcome the impact caused by COVID-19?

A recent survey conducted by Datassential found that 57 percent of the survey audience had been talking about buying food outside and 30 percent went on to order food, while 30 percent may be a lower number, it is still a very strong indication that the figures would only rise in the coming days.

Check out to see how GOFRUGAL is helping restaurants to overcome COVID-19

Even though these are testing times, we have seen ample instances were restaurants have reduced the COVID-19 impact by adopting to new measures and initiatives like the ones listed in the blog. So, cheer up, Let’s cook up some smartness and together let’s clean up the impact caused by COVID-19 on the restaurant industry.