One of the most negatively impacted foodservice channels by the lockdowns in 2020 and 2021 was full-service restaurants. From March 2020 until mid-2021, they were unable to have customers on their premises, apart from a brief period when some restrictions were lifted in autumn 2020, before the industry was locked down again completely due to the rising case numbers.
One of the biggest challenges for the hospitality industry has been the disappearance of international tourism. International tourists typically spend twice as much as domestic tourists.
The switch to off-premises dining was relatively more difficult for full-service restaurants than, for example, for limited-service restaurants or street stalls/kiosks. There was a lot of progress seen in terms of implementing new technology and adjusting digital channels, with a focus on social media and investing in websites or players possibly introducing their own ordering systems.
Rising costs are an issue across the whole of the consumer foodservice industry and have repeatedly been highlighted by restauranteurs as well as those working in other areas of foodservice as one of the most pressing challenges. In the restaurant business, issues with staffing not only apply to hospitality staff, but also chefs, who can be very difficult to find in more rural locations outside of major cities.
During the pandemic, the majority of restaurants were only able to sell through delivery or takeaway. This meant that delivery platforms became very important, with many rushing to sign up with delivery platforms at the start of the pandemic, such as Deliveroo and Just Eat, which have been widely marketing restaurants on their platforms.
As well as using delivery service platforms, full-service restaurants are also beginning to leverage technology in other ways. Social media was a focus for many players during the pandemic, enabling them to keep customers in the loop with reopening times and keep the brand in the minds of their followers.
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FSR (full-service restaurants) encompasses all sit-down establishments where the focus is on food rather than on drink. FSR is characterized by table service and a relatively higher quality of food compared to quick-service units. Menus offer multiple selections and may include breakfast, lunch and dinner. Preparation of food products is often complex and involves multiple steps. NOTE: restaurants types catalogued in this segment refer to table-service only (outlets with a proper “full table service:” wait staff attending customers and taking orders at the tables). Outlets with “limited table service” are excluded from FSR. For example: outlets where customers order their food at the counter are excluded (even though the waiter will then bring the food at the table).See All of Our Definitions
This report originates from Passport, our Full-Service Restaurants research and analysis database.
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