COVID Impact on Restaurant Industry – Report

I have read a brilliant report on food industry made by TagTaste Foods Pvt. Limited – For @TiE – if you are in the F&B sector do read it in detail.

My key takeaways
1) In FY 20, only 19% outlets had EBITDA of 10% +, 50% was negative EBITDA. Now, 18% single-unit restaurants will shut. Chain-brands will shut 12-15% of their restaurants by Dec 2020
2) 2015 was the best year for F&B Industry. Post demonetization in Nov’ 2016, the performance levers of the industry changed, thanks to the massive discount-driven delivery push..
3) Delivery platforms are running out of cash, putting pressure on discount induced delivery business Last year, delivery platforms’ discount spent was 34%, brands shared 50% of the discount spent..
4) Negative working capital is a curse because it encourages a false sense of continuity and in the end, the small- medium suppliers become the collateral casualties
5) Our restaurants aren’t set up for delivery- don’t have menus that are designed for takeout. The covid-crisis has prompted quick adjustments and for some, it’s a life-or-death situation.
6) A Five-Year Downturn?
7) Mindful Eating: How to eat food in a new (but right) way? A huge opportunity
8) Brands on a ‘crooked ladder’ (bad hygiene practices, false claims) shall be severely penalized.

About The Author

Mansi Mahansaria

Mansi Mahansaria

Last mile logistics for foodpreneurs in mum and Pune. farm to fork in maharashtra

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