Over the past few years, the Food Services industry (including restaurants and online food delivery) has witnessed a strong growth, driven by the ease and convenience of eating out or ordering in, rather than self-cooking.
This industry has faced maximum heat from the covid-19 pandemic, with the restaurants have been shut for over 100 days and consumers having developed apprehension from ordering food from Cloud Kitchens.
While there is no certainty around the restaurant industry’s recovery, we expect cloud-kitchens to return to Pre-COVID numbers over the next 2-3 quarters – the success mantra being to build customer trust by maintaining high levels of hygiene and becoming a Direct-to-Consumer brand, and operating at frugal economics through asset light business model, increasing revenue per sq. ft. and reducing wastage.
Additionally, it will be interesting to see how large restaurants and hotel chains pivot to food delivery and adopt a cost-effective business model in order to sustain the current crisis.