Effects of COVID-19 on the Food and Beverage Industry

COVID-19 has hit the whole world economically badly. Although the economic policies of the states satisfy the citizens of some countries, many of them are trying to get out of this period "safe". Undoubtedly, the most affected sectors are tourism and food and beverage sectors.

The global spread of COVID-19 and the measures taken to prevent the epidemic have greatly disrupted the functioning of the service sector. Closures to the house, social distance rules, the fact that restaurants can only provide takeaway service and many people hesitate to eat in places such as restaurants-cafes significantly reduced the revenues of businesses. eating and drinking sector in Turkey has been operating with large and small businesses and direct 2 million 100 thousand employees. As the year 2020 ends, it is predicted that the sector will close 2020 with a loss of approximately 60 billion TL in revenue.

So how do we observe the effects of COVID-19 on the global restaurant industry?

1- Changes in customer traffic: It is expected that the number of guests in restaurants will decrease even if restrictions are lifted after the epidemic due to the provision of service with take-away and take-away applications, and the concerns of guests due to the spread of the virus.

2- Health and cost-oriented consumer trends: Consumers who prefer restaurant meals turned to online ordering and delivery options due to mandatory restrictions. Hygienic facilities and restaurants that comply with food safety regulations have become more attractive with consumers gaining awareness about cleaning in the public space. In addition, economic effects encourage consumers to be more sensitive to prices.

3- Supply chain and stocks interruptions: If products are not sold on time, deterioration and loss have increased the importance of close monitoring of food stocks and stock visibility.

4- Availability of talent and workforce: Although layoffs are prohibited, the leaves taken due to reasons such as sickness of employees and forced quarantine caused a decrease in the workforce.

5- Interrupted cash flows: During the epidemic, when consumer demand is falling and the cost of food is rising, businesses are looking for new ways to reduce their costs and increase their earnings.