Sales And Marketing

Covid 19 phase: is this the right time to invest in restaurant business?


10 Mins Read


Restaurant businesses have exhibited trends of cumulative growth continuously. Under various situations, the food business has always adapted accordingly. However, due to the current situation Restaurant Business in Covid 19 majority industries are in a knee-deep problem. As far as investment is concerned, the future of hospitality is surely going to ensure tremendous growth. As soon as the vaccine reaches the masses. However, the burning question these days is whether it is an auspicious moment to invest in the restaurant business? The answer would take a dramatic course through the article. And the upshot would be unwavering growth during the onset of COVID 19 .

Covid 19 vs Restaurant Business

The food business has endured multiple severe outcomes due to the effect of Covid 19 in Restaurant Business , just as the other industries. The most gratifying aspect of this phase is that COVID 19 and Restaurant Business are capable of going hand in hand. The restaurant business belongs to one of the rarest Industries that had the potential to prevail adequately . The rationale is its competence to serve the society with the need of mankind-food. Man is a social animal who can’t stay in the lockdown for a prolonged period . This perspective has created a scope in the business, exhibiting a road map in favour of industry in 2021.

Reasons to Invest in Restaurant Business in Covid 19 Phase

The opening of 2020 was a great time frame for the restaurant business. It’s time to look at the grounds to invest in the food business in 2020-21.

1. Low Competition 

Most of the startups and entrepreneurs have made up their minds to back out of the Restaurant Business in Covid 19. Because of the expenses they had to bear during the lockdown. The losses were huge and comprised of. Rent, assets of the restaurant including furniture, lighting, interior, crockery, utensils, and other paraphernalia. There is a silver lining in every black cloud. Therefore, there is a prospect in this challenging situation. If you are planning to put in money in the food business to gain fruits in 2021; the current scenario of low competition is serving you at its best.

2. Less Capital 

The COVID 19 phase in the ongoing year is certain to fetch recession for the coming years. With this eventuality, it is advisable to invest in a restaurant business with does not need much capital. The fixed costs for inaugurating a restaurant entails license fees, furniture, rent, kitchen equipment, etc; and variable costs include food, operational costs, salaries, maintenance, electricity bills, etc. You can decrease the amount of capital with rent, salaries, furniture kitchen equipments, etc by designing a restaurant according to the COVID 19 guidelines. We would discuss more about the restaurant business in detail. While highlighting factors that should not be ignored during the occurrence of such a situation.

3. Less rent

Many people across the world at the moment are only focusing on getting survival income, especially landlords because they are unable to retain their commercial or non-commercial tenants. This state of affairs is another piece of advantage for an entrepreneur planning to invest in 2020. The major part of the costs of operating a restaurant is rent. One may have an effortless discreet approach to grab the property at much lesser rent than usual and fix it for a year with an agreement. This is an ethical way to make a foundation for profits for the first year of your restaurant business. 

4. Grab Gains 

Getting to the nerves of some essential factors holds a high importance when it is affecting the restaurant business in the future, and present as well. The first one is allied to the economic facet to take hold of gains by cost-cutting in the COVID 19 phase. It is fairly possible with a less crowd and maintaining social distancing. Having a special eye to consider social and cultural factors where you want to launch your restaurant business would be a blessing.

Make a research on the demographic factors of the local groups near the restaurant for your target market for supplying enhanced services. Take the political concerns acutely wherever you desire to establish your food business since you may have a wide range of options. Keep in mind the technological factors to direct investment for kitchen equipment, ventilation, exhaust, storage, and drainage in your restaurant business for safety during operations. Considering all these factors discreetly will unquestionably lead you to grab gains.

5. Great Team 

Having a hardworking and talented team is a matter of luck. Under normal circumstances, you may or may not get access to the best talent of the industry. Due to COVID 19, many talented chefs, marketers, supporting staff members, caretakers and other backbones of the hospitality industry are hunting for new prospects in the budding hospitality business during these tough times. Your restaurant business can be their preferred destination and to grab a hold of this opportunity to make them work according to your terms & conditions.

6. Wider Niche

If you are one among those who have been planning to launch something new, innovative, and unique; the hospitality business during the onset of COVID can categorically give you the chance. People are willing to welcome innovation that can give them pleasure. The blues created as a consequence of lockdown due to COVID 19 has twisted some room for creativity in the hospitality business. Your innovative ideas to craft a presentation of the food items, can demonstrate to be a treat to their taste buds creating a great scope for your restaurant business.

7. Easy Public Relations

A business operates in an internal and external environment which affects them more or less continuously. The macro and micro factors in the external environment play a drastic role in strengthening the image of a restaurant business. It’s the golden hour to establish favourable terms with financiers, market intermediaries, transport service providers, food delivery app, app providers, et al. You will have more instances of interaction with all of them because of low competition.

8. Negotiable Terms 

Take the hospitality business during COVID as an opportunity to mould the overall terms & conditions related to your restaurant business in your favour. The terms & conditions could be with respect to various agreements established with your suppliers and wholesalers. Realize your importance as their customers and negotiate your terms while signing the contract with them. The reason is simple, you are giving them business which the corporate needs the most in the COVID 19 phase.

Best Possible Ways to Invest in Restaurant Business

The future of F & B business is bright in the long-run but some efforts are needed to polish it in the near future. Facilitating the implementation of unique ideas in the hospitality business during COVID requires an approach altogether which is far from conventional. The best possible ways to invest in the restaurant business in 2020-21 are:

1. Cloud Kitchens

Cloud kitchens are remote kitchens that are gaining the focus of many startup investors because of no dine-in space and thereby no crowd. It can engender business without walk-ins by the masses. You may operate your restaurant business with multiple choices offered by cloud kitchens like cloud kitchens with single brands and multiple brands, home-based cloud kitchens, stand-alone cloud kitchens, shared cloud kitchen restaurants plus cloud kitchens, etc. Cloud kitchens offer a variety of advantages like less staff, less operational costs, less rent, less maintenance, better management, etc. Cloud kitchens have disadvantages in general which are added advantages for the future of F & B business in COVID.

2. Co-working kitchens

Co-working kitchens in the restaurant business can be in cloud kitchens for restaurants. Co-working means two or more entities working under the same roof and operating in superior terms & conditions. These terms count on the mutual understanding of the entities working together. Hospitality business in COVID with co-working concepts can give stunning results because the overall costing can be half or one-third depending on the number of entities. Diverse possibilities of sharing can be with respect to rent, kitchen equipment such as salaries of the staff, electricity bills, cost of ingredients, etc.

3. Cloud Kitchens Franchise

Franchise business is for those who want it for those who want to invest with definite results. If you embark on the industry of restaurant business with the grand entry of multi-brand cloud kitchen franchise nothing can be better than this. You would have staunch support with your respective restaurant consultant. The preliminary time and effort are not essential to establish a brand because in a franchise restaurant business the brands are already famous. The food business in 2021 with the cloud kitchen franchise has immense scope, especially in multi-brand cloud kitchens.

4. Legendary Restaurant Franchise

Themed and inimitable restaurants are always the prime destinations for people and their steadfast customers visit them from remote areas as well. Beginning your restaurant business with a legendary restaurant franchise will be victorious in providing integrated and skyrocketing opportunities for affluence. The future of the F & B business during the COVID 19 phase can beat this challenge with an established brand of a restaurant. It is sagacious to invest in the restaurant business under these circumstances to evade the massive cost associated with marketing to institute a restaurant brand. It requires efforts from brand ideation to menu planning, kitchen planning, SOP’s & training, procurement & liasoning restaurant theme, etc.

5. Existing Business Takeover

The existing business takeover is also one of the booming tactics that can take you to the pinnacle of the hospitality business in COVID. It is apposite for those who can distinguish the potential in a sinking ship and have the valour to get it through the storm and bring it to reach the coast. Invest in an existing restaurant business by taking it over and take the advantage of the brand valuation. Consider the factors below to revitalize the business generation of the restaurant. It’s due to the COVID phase that the restaurant owner agrees to furnish the restaurant to you.  

6. QSR with Take-Home Service

Quick Service Restaurants are fast food casuals that are in fashion amongst all age groups whether they comprise ice creams, burgers, sandwiches, pizza, etc. Inaugurating your restaurant business with a QSR is an innovative idea with a take-home service apart from taking services of food delivery service providers. Two major principles of marketing are letting customers know your offerings. Launch the take-home service with a digital marketing campaign to encourage people to make the deliveries themselves also apart from ordering online while passing by the restaurants. This way your restaurant business in the future would obtain more exposure.

Necessary Factors to Consider!-The COVID Era

The operations of a restaurant are not complicated and they demand ample heed and attention. Some obligatory factors that one needs to deem while attempting to encompass a great start in the hospitality business in COVID are here:

1. Short Menu

The menu planning is the key to success in the restaurant business and you must design it according to the taste of the target market, the theme of the restaurant, and the Unique Selling Points (USPs). Keep the menu short to make it eye-catching and terrific for the comfort of customers and consumers. The shorter the menu; the higher are the chances of it getting established in the minds of the masses. During the phase of COVID 19 and hospitality, it would be less perplexing to customers and they would deliver the order faster and think less. 

2. Recruit Limited Staff

Earn target amount of proceeds in the restaurant business this year by employing the requisite number of staff members. Don’t amuse trainees in COVID 19 phase even when they persevere. It would trim down the risk of getting infected in the first hand and also would formulate the execution of social distancing easier. 

3. Outstanding Take-Away Service

Pioneer an outstanding takeaway service by bringing better liaisoning in the management of the restaurant business. Allocate the chefs and the supporting staff so that they can deliver the orders on getting more orders online or footfalls. If this management is not up to the mark, the marketing hefts to broadcast the take-away service would be in vain. 

4. Drive-Through Facility

The drive-through facility is a take-away facility that the government has launched in lieu of the COVID 19 phase. The drive-through facility enables the customers to acquire the food delivery from the restaurant or the outlet and stay safer during the COVID 19 phase. This is not easy for every restaurant business because one desires to build a window accessible from the shaded area from where the four-wheelers can drive through. This is enormously favourable for the other members coming along with the drivers, chiefly children. Make sure to do its branding as a USP. 

5. Launch New Menus

People across the world have concerns with monetary stability to an alarming extent. Most of the companies in all the industries are advertising their products or services at economical rates. It would be healthier if you launch a cost-effective menu. This would also take steps as a penetration strategy through your hard-hitting competition which is in favour of your food business. 

6. Focus on Hygiene & Sanitisation

To get an evenhanded number of orders, your restaurant business has to be in compliance with the government guidelines. The future of F & B business has much to do with the performance at hand. Hygiene and sanitisation practices are the most crucial life-saving strategies for the hour. Only cleanliness with immunity can construct a defending shield around the staff and the people visiting the restaurant for the time being. 

7. Branding with a Right Message

Branding of the restaurant business has a close union with the vision and mission statement and other corporate philosophies. The future of hospitality is with the entities that put forward a comprehensive package of branding with a professional approach, interior designs, appetizing food, and digital marketing. Brand and Designing are very influential and the messages conveyed carve a sturdy and eternal impression. Keep the messages to benefit your restaurant business in the long run and not only during the food business in 2021.

8. Improved Service and Delivery Etiquettes

The food business belongs to the hospitality industry which is in turn a part of the service industry. The chief rudiments of the service industry are product, service, service environment, and service delivery. In the restaurant business, the product(s) is/are your offered eatables. Employ aesthetic designs to appeal to the senses of your target market and other potential consumers to make the service environment heaven to visit. Improve service delivery by the great quality of packaging and branding.

9. Enhanced Packaging

The unsurpassed quality of the packaging is a must for any restaurant business because the food items must be safe in them. Besides, it is also indispensable for showing the designs of branding on the packaging designs. During the COVID 19 phase, advance the packaging by making sure nothing with the main food items fall out. It may pertain to sachets of sauces also. Earlier, it would have been okay if it did but the hospitality business in COVID cannot afford it. It can derive a careless impression on the customers.

Immediate Boom in the Restaurant Business in the Future

The future of F & B business is unquestionably coming with double or triple returns but one should invest in present times. It is a golden opportunity to create the desired brand name and brand image because of low competition, less rent, less capital, and other important reasons stipulated above. Just like after a storm comes the calm; after a recession comes a boom. It is noteworthy that the industry of restaurant business will acquire an abrupt boom after the exultant launch of vaccines. The hospitality industry is directly related to a blend of amusement and socialisation. It is also in proximity to the travel & tourism industry that is going through a long pause in the international scenario and national framework. As soon as it would be resuming, the food business would recuperate all the losses in the first quarter or half of the year.


The restaurant business is going through intricate times as a cycle of ups and downs. It is customary. We have crossed the major period of the pandemic that influenced the situation. The vaccine is in the ultimate stage of trials and this time is ideal to launch the hospitality business in COVID because the domino effect of marketing comes to notice following a couple of months. Investing instantaneously will get you to the summit of the industry with conviction. The food business in 2021 will capture an unsullied start with mobilising the resources jointly for the common good of the reciprocally allied industries. DNY Hospitality offers end-to-end service in restaurant consulting and cloud kitchens.



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