Last Updated: 20th August,2021
The COVID-19 outbreak brought radical changes to consumer behaviour in the food industry. The fear of getting infected may fade once the pandemic ends but changes that leave positive impacts are likely to last in the future. From digital adoption to health awareness, it is estimated that many recently adopted behaviours may become the norm.
Entrepreneurs looking to make hefty investments in the food industry must understand consumers’ preferences and food industry trends that may last in the future post COVID-19. To help entrepreneurs that rely on facts & statistics make important business decisions, we’ve listed some popular food industry trends in this blog post that may stick around for the long term.
Below-listed are some prominent food industry trends that are expected to persist in the future:
The COVID-19 pandemic has increased the usage of online food delivery services. According to surveys conducted by the following websites, people are likely to use online food delivery services in the future after the COVID-19:
According to a report, search results on the web across the U.S. for “is food delivery safe” increased 650% in March 2020. Even after the arrival of the COVID-19 vaccines, many people are still concerned about their safety. To keep their customers and staff protected from the COVID-19, it is estimated that both restaurants and food delivery platforms will continue to follow the below-listed safety practices in the post COVID-19 future:
Many people prefer to opt for contactless delivery options while placing their order due to the fear of getting infected by the COVID-19. A research conducted by sense360 explained that 42% of the US consumers selected takeout delivery options while ordering online since the COVID-19 began and 64% of those are expected to sustain this behaviour in the future after the pandemic ends.
As of June 2021, 25.3 % of the global population has received at least one dose of the Coronavirus vaccine. According to a report by the World Economic Forum, at least 60% of the people from countries like Germany, Italy, the U.S., the UK and more are still eager to follow social distancing practices in the future even after getting vaccinated.
Though many people may continue to adhere to social distancing measures, it is expected that the following contactless delivery options would persist in the coming future:
The COVID-19 outbreak has adversely affected sales of local restaurants over the last year. To support small and mid-sized restaurant owners in these trying times, many food delivery companies have decided to make significant changes to their revenue model.
For instance, DoorDash recently came up with a differential pricing model in which restaurants can set commission fees to be paid to the platform on every order delivery. Previously, restaurants had to pay a fixed commission charge to DoorDash on every order placed and delivered.
But as per an article published in The Wall Street Journal, restaurant owners now have an option in which they can select commission charges from 15%, 25%, or 30% as per their requirements. Marketing support would be offered to the restaurant based on different fee levels.
In a virtual event, DoorDash’s COO Christopher Payne revealed that the company has decided to offer differential pricing options considering the demand of their partnered restaurants. Here is his official statement:
“This is what we’re doing by listening to our merchant partners and making adjustments. Basically, we’ve been learning together what a restaurant needs and testing the way what the next stage of pricing should be.”
If DoorDash witnesses an increase in their sales volume in the coming days due to its updated revenue model, then it is estimated that other food delivery giants would follow suit.
Prior to the COVID-19 pandemic, the concept of setting up a ghost kitchen was already gaining momentum where restaurants would hire a space for the preparation of delivery only meals. After the COVID-19 outbreak, ghost kitchens experienced a parallel upswing alongside contactless deliveries and takeaways. The ghost kitchen concept has offered many restaurant owners a much needed relief and helped them recoup their losses during the nationwide lockdown.
The global ghost kitchen market is estimated to reach 71.4 billion US dollars by 2027, according to Statista. Starting a ghost kitchen doesn’t require startups to invest a hefty amount of time and money when compared to opening a full-service restaurant. Considering the rising growth of the ghost kitchen market and benefits offered by ghost kitchens such as lower setup cost & faster time to market, it is estimated that cash strapped entrepreneurs would invest in this profitable idea in the future post COVID-19.
Many past disruptions reveal that certain shifts in business processes and consumer behaviours become permanent once the crisis ends. For instance, the arrival of SARS in China in 2003 left a lasting impact on businesses & consumers and increased the digital adoption to a great extent. Though it is too early to say what exactly the future has in store for the food industry in the post COVID-19 world, business owners must adapt to changing circumstances to stay ahead of the game. Adopting new norms while analyzing food industry trends and paying equal attention to what consumers need will help businesses thrive in the future in the post COVID-19 era.
To help budding entrepreneurs go digital in this highly competitive food delivery market, the team of experts at FATbit technologies developed a multi-restaurant food delivery solution named Yo!Yumm. It is a fully customizable solution integrated with advanced features that enables startups and SMBs in the food industry to quickly launch their online food delivery platform. It provides an admin panel to help business owners manage their marketplace activities conveniently. It also comes with ready-made mobile apps and web portals for buyers, sellers, & delivery staff so that entrepreneurs can set up their online food ordering marketplace conveniently.
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