The Future of the Restaurant Industry in 2020: Trends and Predictions

The ongoing global pandemic has brought unprecedented challenges to the restaurant industry. In this article, we will explore the current and potential future outlook for the restaurant industry, broken down into distinct business models, and how these models may perform in 2020 and beyond.

Defining the Restaurant Industry

To better understand the future of the industry, we need to define it into three primary categories or business models:

Restaurant Sit Down: Think of brands such as Wendy’s. Take Outs Only / Roadhouse Foods: For instance, KFC that offer takeout and have a few dine-in tables. Food Trucks: Also known as new food trailers, like the recent innovation in food delivery.

Furthermore, each of these businesses now offers delivery services to meet the increasing demand for convenience and safety.

Current Outlook and Predictions

Based on current trends and observations, the restaurant industry in 2020 is facing significant challenges. Here are some key points to consider:

Restaurant Sit Downs

According to various viral videos and reports, restaurant sit downs are struggling significantly in 2020. High property rentals, high staff turnover, and increased operational risks make these businesses particularly vulnerable. The uncertainty surrounding the pandemic, including the prolonged closure of dine-in services, has exacerbated these issues.

Take Outs and Roadhouse Foods

Take outs like KFC are performing better due to low overhead costs and flexible business models. They can attract customers from struggling sit-down restaurants. Similarly, roadhouse foods that cater to customers eating in their vehicles can thrive with strategic marketing campaigns. These models offer a more cost-effective solution and can adapt quickly to changing conditions.

Food Trucks and Food Trailers

Food trucks and food trailers present the best logical option for entrepreneurs. They offer a lower risk and flexibility to evolve into successful take-out businesses like KFC. These mobile operations can be easily relocated, offering increased adaptability in the current uncertain environment.

Deliveries: A Complementary Service

While deliveries can boost sales, they are not the core business for any restaurant. Restaurants were primarily designed for the dining experience, not just the delivery of food. The founders of successful delivery companies, such as Pizza Hut, understand this. Customers prefer to tell their friends about dining experiences at restaurants rather than just take-out orders. Therefore, we should consider deliveries as a complementary service rather than the main focus.

Prediction for 2020 and Beyond

The performance of the restaurant industry in 2020 and beyond will depend heavily on how quickly the global pandemic is contained. If vaccination efforts pick up momentum, there is potential for a significant improvement in the second half of the year. However, the shift towards remote work may continue, which could adversely affect traditional sit-down restaurants located in business districts.

In conclusion, the current landscape for the restaurant industry is highly uncertain. Entrepreneurs should seek businesses that offer certainty and stability. Food trucks and food trailers present a promising future, given their adaptability and flexibility in responding to changing market conditions.