A survey suggests that indoor dining in restaurants may not return to pre-crisis levels for a long time, forcing restaurants to need a new economic model.
We have seen how severe the impact of the Covid-19 pandemic has been on many industries, particularly the hospitality trade.
Restaurants have been so affected, that many have been forced to shut down completely. Even though restaurants are now opened and are able to serve their patrons until 10pm every day, there is still a limit on the number of patrons a restaurant can accommodate, which has an impact on the bottom-line.
There are also patrons who are wary of going to restaurants, mainly because they feel their health can be endangered. So with all these factors in mind, what is the future of restaurants?
A McKinsey and Co. survey looked at restaurants in the US and if the industry will ever go back to pre-Covid days. The survey suggests that indoor dining in restaurants may not return to pre-crisis levels for a long time, forcing restaurant's to need a new economic model
The study was done by Stacey Haas, Anne Kronschnabl, Pepijn van Kesteren and John R. Moran.
They surveyed consumers on their level of anxiety regarding their feelings and fears on interactions with other patrons, restaurant staff and things like using restroom facilities, when entering or leaving establishment and when waiting to be seated, etc.
More than 80 percent of those surveyed, were anxious about indoor dining. The results were similar to one the company did about grocery shopping, which showed that shoppers people were much more anxious about interacting with other shoppers than with store employees, how shopping for fresh produce, like touching fruits and vegetables that many other people may have touched was one of the main drivers of anxiety during grocery-store trips.
This is partly why the survey found that it will take the industry more than two years to recover from Covid-19, especially casual- and fine-dining restaurants.
So what's the solution? One is for restaurants to implement new hygiene and safety measures to attract customers who feel only low or medium levels of anxiety about indoor restaurant dining. The survey states that it will be more difficult to convince high-anxiety patrons at ease about hygiene and safety measures in restaurants.
"In our view, two areas are of prime importance is making the guest experience as safe and positive as possible and broadly communicating new health and safety measures so that customers feel comfortable returning to restaurants."
Some of the suggestions for hygiene and safety measures includes disinfecting surfaces between customer use, making sanitising products easily accessible, limiting the number of patrons in the restaurant, require restaurant staff to be in masks and gloves and increasing space between tables.
The survey also states that another way for restaurants to survive, establishments need to start developing a new long-term economic model, "including partial on-premises dining and an expansion of on-premises solutions."
This includes optimizing the carry-out, curbside, and drive-through operations. This can be achieved by by re-evaluating staffing, traffic flow, food temperature, and food packaging.
Another suggestion was for restaurants to start negotiating longer-term agreements with third-party delivery companies or developing in-house delivery capabilities, using ghost kitchens which has become popular during the lockdown.
Then there's the option of changing the menu and pricing; rethinking restaurant layout, flow, staffing, and standard operating procedures; whether it's still necessary to have a bricks and mortar operation in light of major shifts in foot traffic and occupancy costs.
Restaurants, the survey states, must come up with a new economic model to sustain the business over a longer period of time than they might have initially planned for.
"The sooner they acknowledge and plan for the industry’s new longer-term economics, the better their chances of surviving the crisis and thriving in the next normal."