Question

Assess the impact of COVID on the Quick Service Restaurant (QSR) industry

Answer 1

1. The restaurant industry is one of the worst hit industries during this Covid-19 pandemic. As per the Covid guidelines, restaurants are prohibited to provide dining service to customers, but they are permitted to take orders online and provide take-home and home-delivery services. However, there are severe covid impacts on online food deliveries also. Quick-service restaurant industry is badly affected by this covid-19; they have few takers now which is very low as compared to normal times, because consumers have a fear that they may not get contaminated food.

Consumers are restricting their discretionary expenditure with an expectation of economic downturn, as a result restaurants are getting hopeless. They are uncertain about their situation. Studies show that nearly 70% of people do not want to spend on restaurants, rather they like to cook their own food.

According to experts, Quick Service Restaurants need to reorganize their strategies for online deliveries and takeaways. Before Covid-19, most of the Quick Service Restaurants used to get 20-30% of their revenue from deliveries. They should increase their revenue now compared to before because restaurants are closed for dining purpose. They are only open for deliveries. Quick Service Restaurants should follow social distancing, contactless dine-in and safety measures so that people will come in large number.