The COVID-19 global pandemic fundamentally changed the dining out experience for consumers, closing dining rooms and forcing restaurants to innovate to survive.
Hudson Riehle, senior vice president of research at the National Restaurant Association, shared his thoughts on how COVID-19 impacted foodservice, how the industry reacted and adapted and which changes will remain post-pandemic during CFI NOW: The Future of Dining Out.
The COVID impact
Prior to COVID-19, consumer demand had been gradually shifting to where the majority of dining took place out of house. The pandemic changed that, with retail sales spiking in March and April of 2020 as consumers prepared for stay at home orders.
Foodservice sales suffered as a result. One year ago, the National Restaurant Association expected industry sales to reach a record high of $899 billion. Instead, industry sales netted $659 billion, a $200 billion loss, Riehle said.
“I think it's important to look at 2021 as a year of transition for the restaurant industry and because the amount of the loss is so substantial there is no way in a single year that it can be regained,” he explained.
How operators reacted
The foodservice industry had to flex in order to meet the challenges posed by COVID-19.
Restaurants that could shift operations quickly to off-premises dining – whether through delivery, pickup or drive-thru – did well in 2020. For example, Buffalo Wild Wings opened its first “GO” concept restaurant – specifically designed for takeout and delivery orders – in Atlanta earlier this year.
Ghost kitchens were another big trend that took advantage of the increased interest in off-premises dining. These concepts use the kitchens of related restaurants to sell food on third-party delivery platforms. Bloomin’ Brands, the parent brand of Outback Steakhouse, recently opened Tender Shack while Brinker International, who owns Chili’s and Maggiano’s, is betting big on It’s Just Wings.
Outdoor dining – something Riehle calls the “emergence of streetery” – and advances in the technology’s consumers can use to order food are two other trends that did well during the pandemic.
“The fact is many of these changes were actually in place in the industry prior to the onset of the pandemic. The pandemic has basically accelerated the rate of adaptation of many of these,” said Riehle.
View our continuing coverage of the novel coronavirus (COVID-19) pandemic.
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