has the pandemic and income allowed consumers to spend more at resturants and the food industry?

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Expert Solution

The impact of the ongoing pandemic on consumers to spend at restaurants and the food industry can be explained through two time dimensions. The first at the beginning of pandemic and the other in the ongoing phase of it.

As the pandemic began to spread among the masses, it affected the global food industry the most among other sectors of the economy. The governments closed down restaurants and bars to contain the spread of the bars. It also ordered to close down other shops and stores which created panic among the buyers. As a result, majority of the consumers got involved in panic buying. This panic buying resulted in empty shelves which contributed to consumers' impulse to hoard and keep bulk stocks of food items at home. This kind of consumer behaviour caused supply shortages in groceries stories in various countries around the globe. There were some supply chain disruptions for some products. Food retailers were among the most affected by the coronavirus.

Talking from the income point of view, millions of people lost their jobs and other source of income which took a huge toll on their quality of life. Food traffic to restaurants and cafes declined by 75% in most of the countries. Later on, the demand for certain agricultural products fell due to lockdowns and closure of restaurants, farmers reported a glut in supply such as potatoes in Netherland and milk in the US.

The hazards of this pandemic also raised health concerns among the people. According to Medical Experts, boosting immunity and maintaing proper health is extremely important to survive through this pandemic. Consequently, Good hygiene practices are also prevelent among the masses. Examples include fresh fruits and vegetables and ready to use foods for consumption without further heat treatment.

However, online grocery shopping and ordering food online has grown substantially during the pandemic. Small scale farmers have embraced digital technologies as a way to directly sell, produce and community supported agriculture and direct sell delivery systems are on the rise during the pandemic.

As of now, we are in the unlocking phase of this pandemic and the services of these restaurants and food industry is beginning to step up again.

Rahul Sunny answered 1 year ago

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