In this article, we have discussed how the restaurant franchise marketplace witnessed innovations during Covid-19 and afterward. Read on to know more...
As lifestyles around the globe witnessed COVID-19 and it hit us all like a tornado sweeping most of the things away from us, it also left a dent in most of the franchising sectors across the globe along with the restaurant franchise industry. The now infamous 2020 pandemic pushed the restaurant industry to the limits, breaking mom-and-pops down and putting some of them out of business too.
As we grieved the loss of many, the few and mighty remained on their feet with few minor scratches to their revenues and business model. They stretched their concepts beyond normalcy and ushered in a new era of innovation by the way of necessity and according to the demand. We are seeing the brands who weathered the storm stealthily take over empty real estate and revitalize downtown areas through their franchise expansion and ability to adapt.
What does this mean for the restaurant industry? It means new streams of revenue that boost franchise value and newfound convenience for the consumer. Let’s take a look at just a few ways that the restaurant industry has adapted to this unprecedented situation in these unchartered times.
Growth of Virtual Restaurants and Cloud Kitchens:
The major franchise adaptation we have witnessed in the pandemic was the growing demand for virtual restaurants. This is by no means a brand new concept but we are seeing the first of its kind move into the franchise space, introducing an attractive value and delivery-only concept to franchisees. Within a shared kitchen space or existing restaurant, franchisees are saying goodbye to decor expense, atmosphere woes, and the headaches of customer-friendly hires. The innovation moves to touch screens from which orders are received from 3rd party delivery platforms.
Take-Out being a Mandatory Norm:
As the restaurants, globally took the heaviest blow at the initial stage of COVID-19, restaurant brands had to quickly adapt or die in order to service. Restaurateurs have expanded beyond the boundaries of the norm, tapping into unexpected ways of takeout experiences. Franchises like Burger King and Messy Bowl are offering full-size family meals. We are seeing Zomato, Swiggy, and UberEats boom, streamlining their usability and giving the ever-popular gig economy a boost.
The operational processes within these companies and remember, franchises love the process, have been forced to become more efficient for their take-out services, essentially trimming the fat that was there all along. As the saying goes ‘The invention is the mother of necessity’, in some cases, established foodservice operators have transitioned entirely to the foodservice delivery model. Their angle, support the restaurants with lower commissions and a business that aims to serve the restaurant and foodservice providers.
Drive-Up and Dine Out:
Who doesn't adore a decent food truck? Particularly with limited seating at dine-in restaurants causing crowding, food trucks have kept their charm through intrinsic value at outdoor occasions, private parties, working environments, and such. Indeed, even the obstruction of selecting a location is tossed out the door as increasingly more food truck organizations enhance and expand through franchising. Food trucks have made their way in the franchise marketplace during 2020 through creativity and affordability. Many Brands understood the opportunity that social distancing brought to the restaurant industry and adapted their model to be affordable for entrepreneurs seeking to exit their dying businesses and into the thriving ones.
Every one of these brands has decided to scale into new business sectors with franchise development, largely because of the pandemic making positive market conditions for their growth. The expense of real estate and the accessibility of human capital that has been displaced because of COVID has driven numerous new buyers into the franchise category. With ghost kitchens, new takeout models, and food trucks as the face of this restaurant revolution, the ever-changing restaurant franchise sector is ready to take on the new frontier of post-pandemic lifestyle.