How COVID-19 is transforming Food Services & Food Retail
Few industries have been as hard hit 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 ordering, pick-up and delivery options. 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. In fact, 68% reported having 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 place 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.
In two recent episodes of our podcast, The Big REthink, we discuss how technology is helping food service providers and food retailers adapt to a post-Covid reality.
Online ordering, mobile apps and other technologies have made dining faster and more convenient than ever for restaurant customers. And with that convenience comes increased demand – especially amid ongoing safety protocols and social-distancing guidelines. Michael Lavigne, president and CEO of CLEARVIEW, and Che Baird, customer relationship manager at Panasonic Canada, join host Susan Campbell to discuss how tech is helping restaurants keep up, how it’s creating a more personalized experience for customers and what its role is in predicting demand.
Grocery store customers want – and need – safe, quick and convenient ways to shop for food. Matt Judkins, director of corporate marketing communication for Hussmann Corporation, joins host Susan Campbell to share his take on the technologies that are helping grocers provide just such an experience, from online ordering to contactless pickup. Plus, they discuss sustainability initiatives in grocery stores and supply chains, and what the future of food retail might look like.
Back in early 2020, before the coronavirus outbreak hit North America, 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.