Will restaurants see a revival soon?

The restaurant and eating out industry has been one of the worst impacted as a result of the pandemic. After signs of a revival owing to build-up in consumer confidence and positivity around the vaccine roll-out, a second wave of the virus is raising red flags again. Smita Jatia, MD, Hardcastle Restaurants, McDonald's (West and South) says this time there is a playbook ready. "I'm sure there'll be times when there could be partial shutdowns, but we are in a much better position to handle the situation," she said in an interview.

Is the worst for the industry over? Will this labour intensive sector see a pick up in hiring in 2021? Watch the interview and read the excerpts below:

Q] Which places are you seeing an increase in the trend in eating out?

A] We saw small towns come back much faster. It could be because of the density of population or lower infection rates. Cities were also quick to follow, especially where regulatory restrictions didn't go on and off. Things started to improve from October because that's when dine-ins started. The pickup of dine-ins was much faster than deliveries when we started in April or straight after COVID.

Q] There’s a resurgence in cases being seen in certain cities. Does that worry you?

A] We are much more geared up to face these restrictions, and we have our playbook in place that even if there is a lockdown, there are other convenience channels by which we can get food to our customers.

And as we go forward, I'm sure there'll be times when there could be partial shutdowns, but we are in a much better position to handle the situation.

Q] Would you say that the worst for the industry is behind you now? What were some of the biggest learnings that came out of this period of crisis?

A] Absolutely. I think the worst is definitely over and letting a crisis go to waste would be the worst thing to do. You should always take advantage of a crisis to become bigger, better and bolder. The first learning is definitely agility. I think it's clearly proved that brands which have not been agile and who have not been able to innovate, have not been able to handle the crisis and recover. My second learning would be that necessity is the mother of invention. So, delivery - We had delivery, that was not an invention, but we did contactless delivery. We had zero layoffs during this period of our 10,000 McDonald's family. And we used this time to have e-modules at work from home situations.

The last one would be that everyone in the industry has had to rationalise their cost structures, but at the same time, everyone has had to do much more. So the learning here is - less is more, and you can do many things with lesser resources. It is about optimising, prioritising and see where you get maximum bang for the buck.

Q] What's your outlook for the QSR industry for 2021?.

A] I think there is huge opportunity for the QSR segment. Roadside vendors are going to go a little out of business, because customers are going to be more conscious on hygiene, cleanliness, quality. And hence the eating out visits are not going to reduce, but QSR segment is going to get a share from roadside vendors. When it comes to fine dining restaurants, again, people are going to be value conscious, and they are going to use brands which give value for money. And hence QSR brands are, again, well-poised.

2020 has been a blip. Already we can see the green shoots and we're already back to pretty much pre-COVID levels. Consumer confidence in eating out is built in. And hence we are going to get back on track with our growth trajectory.

Q] Eating out is all about experience. Do you think that convenience formats are a sustainable model?

A] QSRs are basically buried in the lever of convenience. And even now, our eating out is made up of two occasions. One is celebrations, when it is a special location and the second is a part of everyday life, whether there’s a lunch on the go, breakfast on the go, or whether there is a meal, which is ordered at home for convenience. Even as we see dine-ins pick up, the good news is we are seeing no erosion in our convenience channels.

Q] What are the roles or job functions seeing higher demand in this industry?

Digitisation is going to be a big pivot for growth. Even when it comes to marketing, whether it is GPS to understand where the customer is to keep the food ready or when they come to pick it up, or it is GIS systems by which we can do smart, targeted marketing - all these roles are going to be more in demand. And today we are back to normal when it comes to whether positions we are hiring for, the restaurants we are opening. As we keep opening our restaurants, we are going to continuously hire the way we have been able to.

Q] The barriers to entry in this industry has always been pretty low. Is the current environment going to act as a deterrent for new businesses?

A] Any business can do well if you have a well thought of business plan, a good strategy and good execution which is sustainable. You've heard stories of brands which were built for six months or one year and had to close shop. So it's not about whether there's COVID or not COVID. The business plan has to be solid. It has to be backed by a strategy. Pandemic or no pandemic, everyone has to eat three meals a day and that's not going to change.

Q] You were married at a rather early age and you had a family soon after. You have talked in the past how much of a support your family has been in your professional journey. What are some of the steps that men can take to be better allies?

A] I have been very fortunate to have the support of both my family and my husband. We are often asked this question as to how as a couple we have worked together. I think more than support, it’s about ensuring that we bring complementary strengths to the business, to having very clearly demarcated accountabilities and three, which is really the most important ingredient in success, to have respect for each other's decision and respect for each other. I think it's about respect that men have to have for women in the workforce, that they do bring complementary strengths into any business or any company.

Will the restaurant industry revive to pre-Covid levels in 2021? Share your comments below.