After restaurants across the United States and even the world begin to reopen after having been closed during the COVID-19 pandemic, some restaurant formats will fare better than others and as a result, some animal protein sectors will do better than others.
Will Sawyer, CoBank lead animal protein economist, while speaking during the USA Poultry & Egg Export Council (USAPEEC) 2020 Virtual Annual Meeting on June 10, said he believes that chicken will be a winner in this situation.
Since the COVID-19 pandemic began, the animal protein industry has experienced a historical disruption. Consumers previously spent about half of their food budgets eating out and the other half eating at home, Sawyer said, but that changed dramatically amid stay-at-home orders and restaurant dining rooms being closed.
As people are beginning to eat out again, those in the protein sector need to be looking forward, he said.
“When we think about 2021 and 2022, to me the most important question for U.S. protein and I may even say protein globally is … how much is foodservice coming back, and what does it look like going forward,” Sawyer said.
Survey data, according to Sawyer, has shown that younger consumers – especially those in Generation Z – feel much more comfortable about eating out than people of older generations do.
So, Sawyer rationalized: “When we think about restaurant concepts and restaurant formats that I think will survive and maybe even thrive through COVID-19, it’s those concepts that are very geared to the younger generations. Unfortunately, those concepts that are more traditional, more sit-down … in most cases in the dining experience are really going to struggle and I think be in far fewer supply going forward.”
This will be rough on the beef industry, as steakhouses and other restaurant styles that have a more beef-heavy menu, look poised to struggle.
However, Sawyer said the chicken industry will fare better through these changes, and may actually feel a positive impact.
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