This year has been a roller coaster for the restaurant industry.
Many restaurants were forced to close and then reopen at reduced capacity. The warmer summer weather allowed some restaurants to maintain revenue by expanding seating into outdoor spaces.
What will the coming year look like in the restaurant industry? Here are a few trends that restaurateurs should consider.
Takeout Will Continue to Dominate
As the COVID pandemic raged, many restaurants were forced to rely on take-out sales to stay afloat. Pizza chains, especially those that never offered indoor dining, are doing well.
This trend is likely to continue in the coming months. Restaurants that want to thrive and not just survive, should look for ways to drive carryout sales through specials, offering free or inexpensive delivery, and finding creative ways to package and present to-go meals. Make it easier for clients to order takeout by streamlining menus and the online ordering process.
Limited-Time Offers and New Menu Offerings
Noma, a two-Michelin-star restaurant in Copenhagen, has won numerous awards throughout the years for its reimagining of Nordic cuisine. However, when the famous restaurant reopened in late April, it chose to open its garden as a natural wine bar.
Rather than high-end entrées, the restaurant served dry-aged cheeseburgers and Basque cookies—a far cry from it's carefully curated seasonal menu. The new menu offerings were a hit, and chef René Redzepi hopes to continue their wine bar even after the virus dissipates.
Limited-time offers and creative menu offerings have also helped Alinea, a high-end Chicago restaurant, keep workers employed and customers satisfied. Known for its immersive dining experience, Alinea had a high bar to meet. Its take out-option includes careful instructions for reheating.
Surviving the coming year may require a strong measure of creativity. Shifting offerings, limiting menus, and offering unique experiences will help attract diners who may be limiting their dining out budgets.
Luxury Dining Experiences
In many states, dining room capacity is capped at 25 to 50%. Having fewer customers makes it hard to turn a profit in an industry already operating on razor-thin margins. Relying on takeout can help; however, it may not be enough for many restaurants. According to one report, one in four restaurants won't reopen after the pandemic.
Luxury dining experiences, with high-end ingredients, artful presentations, and expensive drinks, lend an air of exclusivity. High-end dining and hard-to-get reservations have been popular for years—but the pandemic could drive more demand from diners looking for an unforgettable experience when they do go out.
Dining Al Fresco
Illinois closed indoor dining at restaurants in early April. When the state reopened restaurants, it strongly recommended outdoor seating on sidewalks and in alleys and parking lots. This move to al fresco dining was aimed at preventing the spread of the virus while allowing restaurants to serve more customers.
Outdoor cafes and dining have always been popular, of course. The expansion of open air dining is unlikely to cease. City officials in Chicago have asked residents for ideas on how restaurants can offer outdoor dining into the winter months.
This shift has the potential to become permanent as cities look for ways to reduce reliance on cars and expand pedestrian space, even in urban cores.
Events
Restaurants have always been a part of major life events, playing host to graduation dinners, small wedding parties, and romantic date nights. As many people look for ways to preserve a sense of normalcy, events are likely to play a crucial role—though they may be much smaller than in the past.
A small indoor restaurant that can only seat half a dozen tables due to social distancing could, instead, host a small event if local laws permit. When restrictions are lifted, events may be even more important as patrons look for ways to bond and celebrate with friends and families.
The Restaurant Industry in 2021
As 2020 comes to a close, many restaurants face an uncertain future. Recovering in 2021 will require managers and owners to reexamine all current business aspects. Consider reaching customers in new ways through creative takeout options, new menu offerings, and luxury dining experiences.