The year 2020 had been a tough one. There were lockdowns, breakdowns, exhaustion, and distraught all around. Especially the restaurants and the entire F&B industry were going through a lean patch. But every setback is an opportunity for a comeback and that’s what we have to look forward to in the year ahead.
It is time to revive, redesign and replenish the restaurant industry with technology and innovations, that will, in turn, get you the customers who will help you surpass the break-even point and generate revenue. Let’s get started on how to revive the breadbasket industry of the country a.k.a. The Food Industry.
How do you start/revive the restaurants?
Set up Cloud Kitchens
Cloud kitchen is an innovative concept that is gaining ground rapidly in the F&B industry. It is a delivery-only restaurant that has no physical space for the traditional dine-in. It relies entirely on online orders placed through an online ordering-enabled website or mobile app. One of the major USPs of cloud kitchen is that it helps you to be flexible in setting up more than one brand using the same kitchen infrastructure.
Usage of Food Trucks
The idea of food trucks came into existence in the year 2008-09, from the year of recession. Ever since then, Food trucks have been rising and gaining ground in the food industry. The things that the food trucks have been getting right are that they are cost-efficient and they take away the locational value to their advantage.
Turning to Quick Serving Restaurants (QSR)
QSR restaurants are one of the most efficient restaurants in terms of having a good working capital cycle. Quick serving restaurants enable you to be consistent with the product’s taste and quality. This helps you build customer loyalty and retention. It works more when you have multiple outlets where you have to be consistent with almost everything. However, you must-have technology like Inventory Management System(IMS) as QSRs are more likely to stock out due to quick and multiple orders in less time.
How to be Cost Efficient Post-Pandemic?
Make Low Infrastructure Investments
It is advisable to focus on food quality more than infrastructure. While infrastructure is key to make the customers have a pleasurable time, it is the quality of food and the service that would help you retain your customers. Hence, for the revival post-pandemic, your prime focus should be the quality you provide rather than anything else.
Focus on Specialization
Rather than being a jack of all trades but master of none, you must focus on mastering a particular type of food. It will help you be asset-light and all the investment costs that would be scattered otherwise would now help you to invest in the best-required infrastructure to specialize in what you serve that will help you build Goodwill.
Invest in Technology
The goal is not to cut down the cost but to be cost-efficient. Investing in Technology can help the F&B businesses optimize their inventory and supply chain to save costs and boost profits. Technologies like IMS and POS with an AI-based approach instead of a rule-based system that delivers probabilistic forecasts will help automate replenishment decisions and optimize costs and profits.
Where should the restaurants not compromise on?
Quality Healthy Food
Because of the pandemic, the world has become conscious of maintaining a healthy life. A healthy life starts with having healthy food. Restaurant owners must take care their outlets are a mark of utmost health and hygiene. The onus is on every member of the F&B industry to take care of the customer’s health by delivering quality food and service.
Social Distancing Norms
QSR’s and takeaways are some of the best ways to divert crowd gatherings. Also, the social distancing norms that have been issued by the respective state governments should be followed. It would result in the safety of the customers as well as the staff of your restaurant.
Standardization of the Supply Chain
Standardization is the key to the long-term security of existence. Having a smooth functioning chain helps you to automate the process of buying raw materials from the same vendor and that helps you build cordial business relations. Standardization also helps you in minimal human intervention as the complex process of functioning is automated by technology.
While the journey ahead might be tough, it is not impossible. With the help of the guide on how to run the restaurant business in the right manner, you will be able to scale up your brand. Look out for small beginnings, and then cash on to bigger opportunities to build a successful name in the F&B industry.