Pandemic Has Been Changing Business Models Of Food Service Industry

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Many business sectors have been changed by restrictions on social interaction caused by COVID-19. In the food service market, which is now much more focused on digital orders and distribution, major changes have taken place. Some experts expect that even after the restrictions are lifted, the number of conventional tables in fast food restaurants may sharply decrease.



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Selling methods including digital ordering, distribution, receiving in drive-thru windows, at fast food restaurants in the United States and Europe have become the predominant ones in recent quarters due to the ban on indoor service. McDonald’s Corporation (MCD) said 90% of its sales in the second quarter came from drive-thru windows. The rapid growth of digital sales, which have become a major factor in business survival during the pandemic, is also noted by other networks. Many restaurants are now changing the sales system and opening new kinds of facilities that are not focused on “sitting” guests, but on take-out jobs.

This does not mean a complete abandonment of conventional seating. Quick food chains, however, concentrate on new consumer needs and want to provide multiple service solutions to retain consumers in the face of rising competition.

The Chipotle Mexican Grill Inc. (CMG) continues to introduce Chipotlanes, points where customers can pick their orders up. The organization also announced that it is planning to open its first online restaurant. Chipotle Mexican Grill demonstrated last quarter that smartphone orders have tripled, meaning there would be no tables for the company’s new-style digital restaurants, as well as customer queues within the premises.

Changes in restaurant layout are also being carried out by Yum! Brands Inc (YUM). A new Taco Bell restaurant format was recently opened by the company-the Go Mobile shop, which has one pass-through lane for conventional ordering and one for vehicles to accept orders. The company’s restaurant brands, Pizza Hut and KFC, can also borrow it if the format is successful.

At weekend session, shares of McDonald’s Corporation (MCD) fell by -0.46% to $218.33 while Chipotle Mexican Grill Inc. (CMG) rose by 1.65% to $1297.77. Yum! Brands Inc (YUM) added 0.53% to settle at $107.18 on the day.

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