Post-Pandemic Profitability
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When Mark Twain uttered the famous phrase, “The reports of my death are greatly exaggerated,” he may not have been talking about the foodservice industry – but the words still apply. In early 2020, restaurant industry analysts predicted we could lose one-third of the restaurants in the U.S., while other industry insiders like Chef Tom Colicchio said the pandemic could claim up to three-quarters of them, Bloomberg reported.
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Applying lessons learned
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Fast-forward more than a year later and while many challenges remain, the industry is looking increasingly resilient each month. According to National Restaurant Association research released in May, the number of eating and drinking places that were closed either temporarily or permanently was 90,000, which represents less than 14 percent of U.S. restaurants. While that’s still well above the 50,000 closures the industry sees in a typical year, it’s also a generous drop from December figures that cited 110,000 closures – and far from the apocalypse predicted. Add low Covid rates and warm weather to the mix and there are good reasons for operators to be optimistic.
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So now that life is starting to feel – dare we say it – somewhat normal again, is your business ready to make the most of the upswing? The challenges of the past year have no doubt cast a spotlight on what was working in your operation, what wasn’t, and what tools and resources you need at a minimum to keep business going. According to the McKinsey & Co. report “How Restaurants Can Thrive in the Next Normal,” operators can capitalize on the foodservice industry’s recovery by fine-tuning several specific parts of their business. How well are you performing in these areas?
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Rethinking design: How well can you flex your layout, indoors and out, to better manage traffic and sales? How smoothly do you accommodate off-premise business from different channels? Study the various interactions in your business – among staff and guests, staff and third-party personnel, and front- and back-of-house staff, for example – and assess the risks and solutions inherent in each.
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Reinventing menus: On an ongoing basis, study evolving trends and introduce new items that capitalize on them, like plant-based proteins that can be added to a range of dishes.
Optimizing real estate: How well does your facility and location serve your evolving needs? Perhaps it makes sense to exit a market, enter a new one, or convert an existing dining room into a takeout and delivery hub. Digitizing customer interactions: Your customer data can help you make key decisions about what to sell, how to price it and how to promote it. The insights you collect from your guests can help you deliver the kind of personalized experience that will inspire loyalty for the long term. |
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The Foodservice CEO website can help you navigate these fast-changing times and ensure your business is prepared. Throughout this site you’ll find a collection of resources, ideas, and reference material – some created and others curated – to set your business up for success.
Important Websites that offer Guidance
We suggest consulting these organizations for updates and guidance on a regular basis.