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Restaurant and Hospitality Rebound 2023

Restaurant and Hospitality Rebound? Demand for Dining Set to Surge Post-Pandemic [2023 Update]

The COVID-19 pandemic has caused immense harm to many industries. Many places are unable to open, and the ones that can open are doing so with significant restrictions. There’s also the concern of people not feeling comfortable returning to certain public places for fear of the spread of COVID-19.

However, the restaurant and hospitality rebound is expected in the coming future. The demand for dining will rise, especially as the signs of the pandemic start to deteriorate. But the ways how the field will change and what people can expect in the future remain interesting to watch, especially with some people having a better chance of returning.

The restaurant and hospitality industry has especially been impacted by the pandemic. People are not willing to enter dining and entertainment establishments, what with them being places where many people can be found at a time. There’s a general fear among many that these places are “super-spreader” spots.

Restaurant and Hospitality Rebound – A Strong Interest In Leaving the House

Many people who used to enjoy going to restaurants and other places outside the house have expressed a reduced interest in doing so during the pandemic. Many of these people have gone towards alternatives like dining at home and ordering in. But as it turns out, there has been an increased interest in people wanting to go places once again.

Restaurant and Hospitality Rebound

The website PYMNTS recently reported that a majority of people are interested in leaving home more often. A survey of 2,000 people found that nearly 60 percent of them have some significant level of interest in leaving the house and go places. The numbers are higher for those who make at least $100,000 a year, as those who do have a greater interest in out-of-home experiences.

People also have varying reasons for why they want to leave their houses more often. Some people want to see their friends and family members more often. Others want to go to leisure events or travel more often. Some people are simply bored and want to go back to the physical locations where they normally enjoy in their lives.

How Old Will These People Be?

PYMNTS found baby boomers are the people most likely to want to eat at restaurants more often. Each age group after that is less likely to want to go out, with people in Generation Z having the least interest in eating at restaurants. The traditional entities that baby boomers may be interested in may have a better chance at rebounding than the trendy ones that cater to younger audiences.

Restaurant and Hospitality Rebound - GenZ eating out

Some younger people might have settled in on routines that have developed in the past year. These include efforts like shopping at grocery stores and other things that people might deem to be “necessary.” Getting people to escape their newfound comfort zones may be a challenge unless businesses know how to cater to their expectations.

Who Will Survive?

While the restaurant and hospitality industry is expected to make a comeback, there exists a concern over which entities will survive. Businesses with an average unit volume or AUV of at least $1 million appear to have more control over the situation at hand. About a third of these restaurants saw their revenues drop since the start of the pandemic. Meanwhile, nearly two-thirds of restaurants with AUVs of less than $250,000 saw their earnings decline during the pandemic.

Managing Consumer Expectations

The industry will also need to understand and respect the new expectations consumers have. Many people, particularly younger audiences, may see dining and hospitality experiences to be unsafe and dangerous. They might think that they continue to be unnecessary forms of human interaction.

Consumers are expecting businesses to focus on the health and safety of their patrons. Part of this might entail focusing on capacity restrictions, cleaning protocols, and digital experiences.

Restaurant and Hospitality Rebound - Managing Consumer Expectations

Contactless hospitality may be a point to see in the future. People may not be comfortable with using public kiosks or other items that people may get in contact with throughout the day. The development of one-stop mobile apps that allow people to handle many things in their dining and hospitality experiences will be critical. A single app could help with everything from managing payments to setting up reservations and many other points. The overall goal should be to allow consumers to control their experiences while also minimizing potentially unnecessary contact.

Focus on Reservations

Reservations may also be critical for the restaurant and hospitality fields. It used to be that people would often walk into a restaurant at any time of day and enjoy a meal. People could also choose to reserve a hotel at random times if they travel and anticipate they will need service sooner than expected. But people aren’t willing to do that during the pandemic, and their habits might have changed to where they’ll expect reservations in the future.

By allowing people to schedule reservations when they can use certain services, it becomes easier for a business to keep people feeling confident about where they enter. They will know that a business cares about managing its capacity standards.

Mobile Ordering Is Necessary

While these fields should rebound after the pandemic, it may be a challenge for some to recover, as many younger audiences have adapted to new ways of living. Mobile ordering may be a necessity for the future. Mobile ordering allows people to reserve their meals or other experiences ahead of time, letting them know what they are getting is safe and easy to utilize.

A PYMNTS report says that most restaurants have seen a rise in sales through mobile ordering offerings. These establishments can provide mobile ordering opportunities to make their products accessible to everyone, including those outside these spots.

An Interesting Future

The restaurant and hospitality fields will see a rebound in the coming years after the pandemic ends. But how these industries will change in the long run remains unclear. The ways how these businesses will interact with others and details on which ones have the best chance to survive remain uncertain.

Internet Technology 6249719

Five Ways to Boost Restaurant Sales During COVID19

If there’s one industry that’s been hit the hardest in COVID-19, it’s restaurants. Between the stay-at-home orders, limited capacities, and stark regulations to stay open, many restaurants are suffering with low restaurant sales.

Luckily there are ways to save your business and boost sales. Check out our top tips below.

  1. Offer online ordering

Everyone does everything online today. If you offer online ordering, you’ll increase the likelihood of sales. People today want convenience. If they look online and can’t find a way to order with you, they’ll move on quickly.

Don’t let that happen.

Here are a few ways to offer online ordering if you don’t already:

  • Set up mobile ordering on your restaurant’s app
  • Set up online ordering on your restaurant’s website
  • Contract with one of the delivery services, such as Grubhub or DoorDash

Offering online services is convenient and it gets your restaurant name out there more. If people aren’t familiar with your restaurant, but they come across it on Grubhub or DoorDash, they may give it a try.

  • Stay active on social media

Let your customers and future customers know that you care about them and their health. Post updates on social media regarding how your restaurant is handling the precautions. What do you do to keep customers safe?

How are you thinking outside of the box to cater to your customers? That’s what they want to see. They don’t want restaurants pushing sales for the sake of pushing sales. They want to patronize restaurants that are taking the bull by the horns and figuring out a way to get their favorite dishes and drinks in your hands safely.

Here are just a few things to share on social media:

  • Behind the scenes footage of how you handle the pandemic and everyone’s safety. This is big right now so you can’t post it too much.
  • New, creative offerings you have whether it’s a package deal to help families have a fun night at home or a new offering that customers have always wanted but didn’t have time to create. We all have nothing but time now.
  • Specials or deals, especially if they’re time sensitive. You give your customers a sense of urgency that they must come now or they’ll miss a great deal.
  • Streamline your offerings

With fewer (if any) customers in your restaurant, now is not the time to go all out on ingredients and supplies. Simply your offerings and you’ll make it easier on everyone. Keep the fan favorites and choose a few others. You’ll keep your costs down and simplify the process for your customers, increasing your restaurant sales.

Streamlining doesn’t mean cutting back or making less money. If anything, you may even increase your profits by reducing your expenses and focusing on the dishes, drinks, and products that your audience loves the most.

Here’s what you can do.

  • Take a poll. Ask your audience what they love the most. Social media is a great platform for this. This way you know you are keeping the right offerings and getting rid of the ones that aren’t so popular right now and may be a waste of your money.
  • Promote the products you are keeping. You can’t keep everyone happy, there will be people who miss your other products, but promote the items you are keeping. Create urgency in them with specials or even create fun contests, like if you sell X number of a certain dish on a Friday night you’ll offer a special the next day.
  • Increase your digital marketing efforts

If you’ve relied only on in-person marketing, you could be missing out today. Everyone relies on the internet, especially while they are stuck at home. If you want to expand your reach, you have to get online and promote yourself on social media and even via email newsletters.

Create an opt-in so your customers provide their email addresses in exchange for something. It could be a discount, like 10% off, or something free, like a free cookie with your next purchase. The idea is that you get their email address so you can advertise to them in the future.

Your digital marketing efforts could include:

  • Email newsletters that have specials, announcements for new dishes, or new offerings. It could also be a way to share with customers how you’re handling the pandemic and keeping everyone safe.
  • Social media posts and paid advertising. Sponsored posts aren’t as expensive as most people think and since they’re so targeted, they often have a great return on your investment.
  • Offer healthy options

Today everyone is concerned about staying healthy. Show your customers you are on board with what they need by offering healthy options. Whether you always offered healthy food or it’s a new offering for you, it gives families other alternatives.

Here are a few ways to advertise your new offerings.

  • Showcase your new offerings on the home page of your website.
  • Promote the new dishes on social media in a post that talks about COVID-19 and staying healthy.
  • Stay up-to-date with your customers via email newsletters.

Boost your Restaurant Sales Today

It’s never easy to see sales slipping, but if COVID-19 taught us anything, it’s that we need to pivot our offerings. There are many ways restaurants can serve the community even if you are on stay-at-home orders.

Find out what your audience wants and needs and find a way to do it. The restaurants thinking outside of the box, creating new offerings, and finding ways to serve their customers are the restaurants that will survive the pandemic. Are you one of them?