Key Restaurant Industry Takeaways for 2020 – Challenges and Innovations
With a challenging and unprecedented 2020 nearly behind us, it is useful to take stock and pause to review the year’s challenges and opportunities. The pandemic has upended the hospitality industry. The restaurant industry specifically has been plagued with never-ending challenges, difficulties, and, inevitably, closures. It is estimated that the industry will lose $240 billion by the end of the year as a result of the pandemic. However, despite the dark augury presented by this sobering statistic, there are some bright spots. The restaurant industry’s ingrained innovation, drive, and resiliency has shined through in the many ways owners, workers, and consumers have adapted to this new reality. Let’s take a look back at some of the key restaurant industry takeaways for 2020:
Rise in Demand for Comfort Foods and Simple Menu Items
Let’s face it – all the stress and uncertainty this year has made us crave simple, comforting foods. In a world where we seemingly move from one crisis to the next, consumers are looking to their favorite restaurants to provide them with well-known and loved comfort items. Simple menu items, such as the chicken sandwich, have also seen prevalence this year. Many restaurants have simplified menus to cut costs, increase margins, and adapt to the need for curbside and delivery options.
Shift from Upscale to Casual
The shuttering of dining rooms takes us to another of this year’s key industry takeaways. This change saw restaurants pivot from upscale and full-service dining experiences to the inherently casual nature of takeout. This year has seen the rise of fine-dining delivery. Upscale restaurants that had not previously offered delivery saw themselves quickly pivoting. They now provide a modified version of their offerings tailored to an at-home experience. From dry-aged steaks to the finest sushi, this year has made it possible for customers to enjoy high-end meals previously only available at restaurants from the comfort and safety of their homes.
Creativity in Offerings
Across the country, restaurants have adapted their offerings quickly and, in some instances, very effectively, to cater to shifting demands. Family meals have become highly popular as a way for restaurants to increase profits and families to gather round without the hassle of cooking. Some restaurants, unable to move their inventory, offered individual items for sale from their pantry. This was especially beneficial to both restaurateurs and consumers in the spring when food shortages were common throughout the country.
Online Ordering, Delivery, and Curbside
Online ordering is not a 2020 novelty. However, this segment of the industry has seen exponential growth this year. This segment has seen a 20.2% year-over-year (yoy) increase in online food order revenue and a 16.9% yoy increase in users. (4) In fact, as previously mentioned, this year has seen restaurants which would not have otherwise jumped on the online ordering bandwagon making the bulk of their revenue through online ordering. The rise in curbside pickup has also seen many restaurants innovate and create impressive setups to cater to their customers.
Key Industry Takeaways
Thinking back to this time last year, no one could not have predicted the way this year would unfold. The difficulties, restrictions, and closures have been many. As an industry highly dependent upon face-to-face interactions, the restaurant industry has been faced with seemingly insurmountable challenges. Yet, many have turned these challenges into opportunities. Resiliency and innovation are key restaurant industry takeaways for 2020.
Take some time to look back on your unique challenges and opportunities this year, then contact TRG and let us help you strategize and plan for the year ahead!
