14-Feb-2022 | Market Research Store
The restaurant sector all over the world is one of the worst-hit sectors during the pandemic. Restaurants were shut down in India and several other countries after the imposition of lockdown during the first week of a pandemic. However, the second wave has also strongly impacted the fragile restaurant sector, which further forced many restaurants to shut down permanently.
Transport report by the National Restaurant Association of India, the restaurant sector witnessed a 53% decline in business in the year 2021 along with a reduction in market production from INR 4.2 trillion in 2020 to INR to trillion in 2021.
For instance, Delhi's Hauz Khas, an old cafe owner, shut down his shop during the pandemic, and now he has rented that space to some other restaurant. In addition, he has further partnered with them and is now making efforts to set up the cloud kitchen and generate business out of it.
At a time when the restaurant sector landscape has completely changed, several restaurants are making an effort to establish a business by innovation and adoption of the latest techniques.
Also, the sector faced many challenges & uncertainties and is finally looking forward to a better future post-pandemic period.
However, the sector is likely to witness five trends exclusively in 2022.
Drive-through restaurants and QSR
The drive-through concept is growing rapidly in India. Leaders like Burger giant McDonalds and others are pioneering in establishing such a trend. They are also expecting significant growth in the trend in the forthcoming years.
Shyam Thakur, Founder of MOMO KING, a QSR momo chain and RYU bar, explains that QSR is the future for any F&B brand as it involves less cost and space.
“Amid the pandemic, we limited our dine-in experience and increased the QSR operations, which worked really well for us. A lot of cost and overhead expenses are involved to run a restaurant, and many restaurants that were dine-in only couldn’t survive and were shut down as they were not able to bear the costs,” he says.
Contactless menu protocol in the restaurant sector
It is vital to maintain social distance in restaurants, particularly in a time where covid-19 is a sensitive topic. However, in order to ensure all the safety measures, restaurants have facilitated contactless menus for offering comfortable and seamless ordering for customers.
These are the most cost-effective option for restaurant owners. Thereby nowadays, people are promoting less dependency on physical kitchens by using a single kitchen, which further caters to multiple restaurant chains. The cloud kitchen model facilitates restaurateurs to innovate with multiple concepts without heavy investments.
Owners are looking forward to a friendly and comfortable experience for the customers. Nowadays, customers are willing to pay a premium price for a better experience. Therefore, the leaders are making facilities that offer patrons relaxation and enjoyment in a secure and hygienic environment.
Last but not least is the innovative retail concept.
In today's era, technology is a vital area for any sector to flourish. Restaurants are also opting for high technology methodologies to innovate their experiences for customers.