How COVID-19 is transforming Food Services & Food Retail
Few industries have been hit as hard by the pandemic as Food Services & Food Retail. Businesses, however, are adapting quickly, embracing new business models powered by transformative technologies. Five months into the pandemic, we surveyed 150 technology decision makers and found an industry changing in real-time. Here’s some of what we learned...
COVID-19 has changed the way customers shop and eat, with health and safety concerns increasing demand for online shopping, pick-up and delivery options, and convenience. This has had a major impact on food providers. More than half have seen revenues fall by 10-30% while they attempt to catch up to consumer needs. And most expect to be managing these challenges for at least the next 12+ months.
Using the pull-down menu, see why decision makers are turning to transformative technologies — and how their priorities have changed over the past year.
How will food providers respond to shifting consumer behaviors? Over the next 24 months, they’ll be experimenting with their business models – for example, deconstructing the general-purpose store into single-purpose facilities, such as self-service and drive-thru only stores, dedicated fulfillment centers, and ghost kitchens. In addition, they’ll be looking at managing home deliveries themselves to recoup profits.
To pivot to new or augmented business models, agility is a must. In fact, 100% of survey respondents agreed it’s the key factor driving business success since the pandemic began. Agility depends on a number of factors, including rapid decision and learning cycles. But the most important enabler is digital transformation – rethinking every aspect of your business through the lens of what digital technology allows.
Food providers know that investing in new technologies can give them a strategic advantage, especially during the pandemic. Right now, their top strategic priority is integrating physical, digital and mobile shopping experiences to provide consumers with a safe and convenient way to enjoy their food. Not surprisingly, priorities – and tech adoption plans – have shifted dramatically since COVID-19 began.
Asked to name the most innovative thing their organization had done during the pandemic, many survey respondents pointed to adoption of contactless technologies. 68% had already adopted food lockers for customer pick-up on a limited basis. And many others were experimenting with technologies such as facial recognition kiosks and vehicle/license plate recognition for the drive-thru.
Ready to dig further into the state of the industry and the growing role of transformative technologies? See all the results from our research by downloading our full report.
Back in January 2020, before the coronavirus outbreak, we conducted a Food Services & Food Retail study in partnership with Harvard Business Review. It's a fascinating snapshot of industry priorities and attitudes about transformative technologies at a time before unforeseen events would create a new urgency to evolve.
Where is the industry headed? Who's making the best use of today's technology? How are Panasonic and Hussmann moving business forward? Get the answers in our five-minute eBook.