COVID-19 Restaurant Industry Trends

Restaurant Covid Trends

Changes and Opportunities in 2020 and Beyond

Needless to say, this has been a year like no other with unprecedented challenges. These will likely continue well into the foreseeable future. These challenges have been especially taxing on the restaurant industry and its more than 13.5 million employees (as of 2019), both of which have been especially hard hit by the necessary restrictions. According to the National Restaurant Association, as of mid-September, 1 in 6 restaurants  had shut their doors, either permanently or long-term.  The COVID-19 restaurant trends seen now will likely continue well into 2021 and perhaps even 2022.

Unprecedented challenges must be met with flexibility as restaurants adapt to the “new normal.” A shift to curbside pickup, the rise of ghost kitchens, and a shift in consumer spending have emerged. Several COVID-19 restaurant industry trends are also apparent, such as an increase in online ordering and a push towards change industry culture, among others. Despite the apparent challenges, not all is lost. The restaurant industry is nothing if not innovative and resilient. Through this innovation and will to thrive, businesses in the industry can capitalize on the opportunities available in this new environment. Let’s take a look at the emerging 2020 restaurant trends, changes, and opportunities.


Restaurant Industry Changes

Shift to Curbside Pickup

Curbside pickup has been the life vest many restaurants have used to stay afloat during the pandemic and a key player in COVID-19 industry trends. Most expected delivery to be their saving grace, but quickly picked up on the benefits of curbside pickup. Applebee’s, for example, currently generates 32% of their revenue through delivery, but a whopping 68% can be attributed to curbside pickup. By setting up exterior stations with overhangs, restaurants are able to recreate the drive-thru prototype for a fraction of the cost. Furthermore, roughly two-thirds of consumers who opt for curbside pickup now say they will likely continue to utilize this service even after restrictions are lifted.

Rise of Ghost Kitchens

According to Euromonitor, ghost, or “virtual”, kitchens could be a $1 trillion business by 2030. In a time when standard, brick-and-mortar kitchens are facing complicated challenges, this business model seems poised to thrive. By eliminating a large portion of overhead costs and focusing only on delivery, businesses could see profits increase exponentially. However, this business model cannot support all products. It works best for products that travel well, such as pizza, pasta, bowls, and sandwiches. Still, virtual kitchens are one of the restaurant industry trends that will likely play a key role in shaping the future of the industry.

Consumer Spending on Groceries

Historically, consumers have spent slightly more on eating out than they do on groceries. COVID-19 has flipped that, with consumers now spending more on groceries and eating at home than they do eating out. This 2020 restaurant trend is likely related to a few things – a shift to working from home, a preference for foods that have not been prepared or touched by someone else, and wider availability of grocery delivery services. Whatever the reason, likely a combination of these, it is unlikely that this shift will reverse before 2022.


Restaurant Industry Trends

Online Ordering and Delivery Penetration

This two-pronged trend is driven by both consumers and the restaurant industry itself. Online ordering is not a new trend, but the speed at which it has accelerated certainly is. In a new society where close proximity to others is discouraged, it is a no-brainer that online ordering has blown up the way it has. This has made it a driving force in 2020 restaurant trends.

On the other hand, this has also encouraged restaurants to begin, or expand, delivery services. Those restaurants which previously did not offer delivery found themselves depending on this service for a large portion of their revenue. Those who had already jumped on the trend have found themselves expanding to other platforms they may not have been previously utilizing. This trend is expected to continue for the foreseeable future, with delivery platforms looking to expand their services and reposition their value-add propositions. This is one of the restaurant industry trends that is sure to continue even in a post-pandemic world.

Improved Work Culture to Reduce Turnover

Another less talked about trend emerging in the restaurant industry in 2020 is the push for an improved work culture for the many individuals who rely on this industry for their livelihood. The industry has always been notorious for its lack of benefits and paid time off, and, often, for its hazing. The already strenuous conditions faced by restaurants in today’s world has shined a spotlight on the need for improvement in these areas. Now more than ever, health insurance is essential to employees’ wellbeing. This complex shift is difficult to accomplish without assistance and businesses that can afford it would benefit immensely from the expertise of restaurant consultants.

Tech Takeover

The restaurant industry is increasingly turning to technology to help streamline changes and maximize profits. More than ever, restaurants are turning to all-in-one platforms for point-of-sale services, online ordering, to look out for emerging trends, and more. This change has not only been precipitated by the pandemic but also could not come at a better time. When countless restaurants are struggling, anything that can help make owners’ and employees’ lives easier is welcome. Other upsides to the increased use of technology in the industry include smoother customer transactions and better customer data retention. By making traditionally “in-person” transactions digital, it makes it easier for businesses to collect information that will make them more likely to discover emerging restaurant industry trends, therefore allowing businesses to capitalize on these at a crucial time for the industry.


Restaurant Industry Opportunities

Creative Outdoor Restaurant Space

Creative Utilization of Existing Space

With the shutdown of dining rooms across the nation, the industry found itself unsure of how to proceed. Curbside pickup and delivery are great revenue streams, but restaurants that are sitting empty still cost money. Although this has been mitigated by the reopening of dining rooms, many still cannot be filled to capacity. During the depths of the pandemic many restaurants found themselves utilizing their real estate in creative ways. The rise of curbside pickup stations is a great example of utilizing available space in new ways.

Family Meals Add Value

The concept of offering family meals is not necessarily a new occurrence. However, it has been seen more widely this year than ever before. This year has been tough for a lot of people. The unique challenges that come with working from home, caring for children, and running a household has taken a toll on many parents. By offering to take the additional responsibility of preparing meals off their hands, restaurants are able to create additional value and capitalize on an emerging 2020 restaurant trend. Deliveries for family meals tend to be more profitable than deliveries for just one person. At a time when many are weary, the restaurant industry can capitalize on this by offering busy parents a break from yet another obligation.

Creating New Offerings

Unsurprisingly, as sales sharply declined, many establishments found themselves with sitting inventory. As always, the industry’s ingenuity shined through as many restaurants began to offer their inventory up for sale in creative ways. The famed Miami Beach steakhouse, Prime 112, began to offer their dry-aged steaks and prime seafood at wholesale prices for customers to cook and enjoy at home. In other parts of the state, some restaurants marketed their unsold inventory as ‘pantry items’ for sale. At a time when the United States was facing a food shortage, this created a unique opportunity for restaurants to capitalize on.


Restaurant Consultants Can Help

Restaurant Consultant COVID-19

Without a doubt, this year has presented several unique and unprecedented challenges and demanded incredible flexibility and creativity from the restaurant industry. However, with new challenges come new opportunities. The shuttering of dining rooms across the nation, a consumer shift in spending, and the often-unsustainable cost of running a restaurant have presented difficulties. COVID-19 restaurant industry trends have already begun to emerge, such as the explosion in online ordering, a fundamental change in the industry’s work culture, and the continued integration of technology. Those establishments which have remained flexible and looked for opportunities amid the many changes have fared best. By offering family meals for weary parents, utilizing costly real estate in creative ways, and creating new offerings to generate a dual benefit for themselves and customers, the entrepreneurial spirit of the industry prevails.

Most importantly, it is vital to remember that you do not have to do it alone. Running a restaurant is hard enough. Running one during a global pandemic is a daunting task, but restaurant consultants such as ourselves can be an invaluable resource. We are here to help! TRG Restaurant Consulting Services offers over 20 years of experience in the industry and can help you not only adapt, but thrive, while facing the many challenges present in today’s world. Our clients’ success is our top priority. Contact us today and let us lend a helping hand so you can focus on what matters most – your business! 

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