Looking back to 2020, it's difficult but there is no lack of opportunities; looking forward to 2021, the variables are still going on. For the future, here are a few hot topic keywords from the development trend of catering and hospitality industry in 2020 we have to think about that.
After the outbreak of the covid-19 epidemic, many people have to stay at home with quarantine and some people lost jobs and have less savings to expend for shopping and food, that’s the darkest moment to the catering hospitality industry. Many restaurants have to be closed since less customers. According to the data provided by the China National Bureau of statistics, from January to October 2020, the national catering revenue was only 2959.8 billion yuan (Around USD435 billion), a year-on-year decrease of 21%.
The covid-19 pandemic has not been over, this will be a long-term struggle under the pandemic environment for catering hospitality industry.
Food safety is a hot topic derived from the epidemic. Affected by the covid-19 epidemic, people have more requirements based on food safety. The food safety in the catering industry is begun not only to focus on the food itself, but it’s also on tableware / table and chair sterilization, health reports of service workers and food delivery riders, sealing packaging of takeaway food, etc.
So the food safety in the catering industry will be more strict and standardized.
In two years ago, there was a sound of consumption upgrading, but in 2020, all walks of life were drowned by the sound of consumption degradation.
The government drives merchants to issue a large amount of vouchers to stimulate consumption and reactivate the catering economy, but most customers become more rational on the expense of living costs. They will cherish the ordinary and peaceful life.
All kinds of consumption coupons, discount activities, price reduction sales, are focusing on stimulating consumption. The catering industry in 2020 made great efforts. The live streaming becomes the "big killer" traffics to advertise catering brands.
Many catering merchants started to open TikTok, Bilibili, Youtube, Taobao, Kuaishou etc Apps and invited influencers to live streaming sell and advertise their catering brands. Under the normalization of covid-19 epidemic situation, the popularity of online live streaming will continue. However, due to the limitations of live streaming characteristics, influencer’s bonus and brand traffic, not all catering enterprises are suitable for this mode of live streaming.
In 2020, the new retail business raised up to a new level. Some retail brands rapidly expanded their markets and became a new trend of the catering industry in 2020. There are some catering merchants transferring their business through retail platforms to the online, and there are also cross-border collaborations between the retail industry and the catering industry.
Undoubtedly, the covid-19 epidemic catalyzes the development of new retail and cross-industry catering industry, but the foundation that ultimately supports the sustainable development of catering is that the retail provides a new marketing growth point for the catering industry. Retail makes the catering industry more convenient and more diversified, which caters to the variety of needs of modern society.
Many people point out that it’s also a manifestation of "consumption degradation" since many catering brands have invested fast food industry. In fact, the popularity of fast food is a necessary trend under fast food branding.
The plant meat is artificially synthesized from plants, vegetable proteins and seasonings. It has been a hot topic since in 2019 and attracted by many capital investors. Starbucks, Burger King, KFC, DEX and other catering brands were launching their plant meat food successively in 2020.
Plant meat is promoted a concept of green health food and has developed rapidly in the past two years since it's popular with capital markets. However, as a new thing, it will take some time to be widely used.
In the past, cross-industry cooperation in the catering industry was mainly applied to in the marketing, often in the form of joint brand marketing and product advertising placement. In 2020, when the catering merchants have to find some solutions to solve their difficulties, it’s possible that there may be more directions for cross-industry cooperation, such as joint consumption coupons.
The catering industry is going to the digital age. On the one hand, the catering industry started the digital upgrading mode, on the other hand, some new smart catering vendors began to share the market. They bring many new technologies to catering industry. Some merchants run unmanned restaurants, installed the robotic waitress and high-tech smart kitchen terminals to instead of many labors. This reduces huge labor costs and brings catering merchants more profit modes.
In the future, the digital intelligence will continue to promote the innovation efficiency of the catering industry.
Due to the covid-19, many people stay at home and try to have less contact in public places to avoid the infections from covid-19 virus, this offers a better development opportunity to the food delivery service. According to the special research report on Chinese food delivery market shows that the sale of online food delivery market will reach 577.93 billion yuan (around USD85 billion) in 2019, an increase of 36.0% over the same period of last year; However, due to the covid-19 epidemic situation, the scale of online food delivery market is expected to exceed 650 billion yuan (around USD96 billion) in 2020.
It's reported that affected by the uncertain factors of the covid-19 epidemic situation, it has begun to recruit food delivery riders urgently in some cities to prepare for the food delivery labor shortage that may be staged again during the next Spring Festival.
Community group buying, small application retail, friend moment sharing and so on are the common traffic sources in restaurants, all of them focus on private traffic. When the dividend of public online traffic almost disappears, the private traffic becomes a new battlefield for restaurants to seek sales increment.
But for the most small and medium sized catering merchants, this is not easy to play with private traffic sources. It is the large catering enterprise with its own traffic sources that can really do well in the personal traffic.
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