1851

Two years ago, the World Health Organization declared COVID-19 a pandemic. Since then, the restaurant industry has changed dramatically.&nbsp;The restaurant industry was arguably one of the industries affected most by the COVID-19 pandemic. Not only were the doors of dining establishments shuttered for weeks following national lockdowns, but even upon re-opening, they were forced to operate at reduced capacity as well as implement additional sanitation measures to help reduce the spread of the potentially deadly virus. Now, restaurants stand in a unique position after undergoing drastic changes and innovations that led to a more consumer-focused industry, changing the dining landscape for the foreseeable future.As the nation continues to find its economic footing, other repercussions have arisen following the pandemic, including staffing shortages, inflation rates that haven’t been seen in decades and an ongoing supply chain crisis, all of which are causing a rise in menu prices and hesitancy from consumers.&nbsp;With an entirely new way of living forced upon consumers, restaurants were required to pivot to continue serving customers while also keeping everyone safe. <a href="https://www.qsrmagazine.com/reports/restaurants-after-covid-industry-better?utm_source=1851franchise.com&utm_medium=article&utm_campaign=how-covid-19-forever-changed-the-restaurant-industry-2718174" target="_blank" rel="nofollow">QSR Magazine</a> said that the industry’s focus on consumers was expedited due to the COVID-19 pandemic with innovative developments in technology such as contactless ordering and delivery, new loyalty programs to encourage guests to visit establishments and other ways in which the food industry pivoted to retain customers and attract new ones. Throughout 2021, quick-service restaurants reported same-store sales growth of 10.15%, drive-thru sales were up 46.98% and delivery rose 84.53% from 2020 to 2021.&nbsp;“The customer has spoken,” Rob Lynch, Chief Executive Officer of Papa John’s, told QSR. “They want to get food brought to them or get food that is ultra-convenient. And for a long time that was the drive-thru window. Now, technology is changing that. I think the brands that embrace that and can make it work in their economic model will be the ones that continue to outpace the industry.”David Portalatin, a food-industry adviser at The NPD Group and author of "Eating Patterns in America" believes that despite the obstacles that have popped up along the way as the industry navigated the pandemic, it stands in a much better position for full recovery down the road.&nbsp;“We’ve really just fast-forwarded years into the future in a very short period of time,” he told QSR regarding the innovation of the industry.However, a timetable for complete recovery isn’t quite clear as some consumers remain hesitant regarding the restaurant industry, especially with current inflation levels.According to Deloitte’s <a href="https://www2.deloitte.com/us/en/pages/consumer-business/articles/food-service-restaurant-business-trends-post-covid.html?utm_source=1851franchise.com&utm_medium=article&utm_campaign=how-covid-19-forever-changed-the-restaurant-industry-2718174" target="_blank" rel="nofollow">Global State of the Consumer Tracker</a>, the restaurant industry is still working its way back to where it was pre-COVID and may not fully recover. The poll found that many consumers plan to buy fresh food and cook at home more than they did before the pandemic.&nbsp;“While restaurant dining will surely increase from today’s levels, consumers are telling us frequency will remain stunted compared to 2019, at least in the medium term,” Deloitte stated in its report. “Cooking is a cheaper option and millions will exit the pandemic in much worse financial shape. Roughly one in three Americans are worried about making upcoming payments and the same number are concerned about their savings and credit card balances.”Even with consumer uncertainties about their finances and economic recovery, the future looks bright with its continued innovation and technological advancements that allow brands to focus on consumers.&nbsp;

How COVID-19 Forever Changed the Restaurant Industry

1851 Franchise

Economic setbacks, nationwide lockdowns and the immediate need to pivot and cater to customers from afar have dramatically reshaped the foodservice industry.

how-covid-19-forever-changed-the-restaurant-industry

ServiceMaster Restore

ServiceMaster Restore Powers Into the Second Half of 2025 With Growth and Purpose-Driven Impact

ServiceMaster Restore Powers Into the Second Half of 2025 With Strong Growth and Purpose-Driven Impact

servicemaster-restore-powers-into-the-second-half-of-2025-with-strong-growth-and-purpose-driven-impact

Comfort Keepers

Comfort Keepers - Midyear Press Release 2025 - 1851 Franchise

Comfort Keepers® Hits Mid-Year Stride With Strong Franchise Growth and Rising Demand for In-Home Care

comfort-keepers-franchise-midyear-momentum-2025

petbar

petbar - Garrett Dewan - Why I'm Investing - 1851 Franchise

Why Garrett Dewan Is Choosing To Reinvest in petbar

petbar-franchise-austin-garrett-dewan-multi-unit

Paris Baguette

NJBIZ: Paris Baguette Ramps Up Expansion With New Franchises, Facility and 2030 Growth Target

njbiz-paris-baguette-ramps-up-expansion-with-new-franchises-facility-and-2030-growth-target

Busy Bee Jumpers

Top 10 Reasons To Buy a Busy Bee Jumpers Franchise in 2025

top-10-reasons-to-buy-a-busy-bee-jumpers-franchise-in-2025

Buying a Franchise Masterclass

 Franchise Opportunities

Get Support Buying a Franchise

How to Buy a Franchise White Paper

How to Buy a Franchise

How to Sell Franchises

How to Grow a Franchise

Find a Franchise Supplier

1851 Franchise Opportunities

Franchisor News

Franchisor Power Rankings

FranCamp Mastermind Summit

Franchise Development Website Builder

Franchise Resources

What ALEC-Laffer's Report Means for Franchising

Website Awards

Power Rankings

About 1851

Advertise on 1851

Contact 1851 Editorial

Terms of Use

1851 Login

GROWTH CLUB LOGIN

facebook

instagram

twitter

linkedin

youtube

Wendy's CEO Kirk Tanner Steps Down - Breaking News - 1851 Franchise

Wendy’s CEO Kirk Tanner Steps Down Amid Challenges, Leaving Franchisees Facing Uncertainty

wendys-ceo-transition-kirk-tanner-franchisee-uncertainty

"Come in, We're OPEN" sign against abstract background

Small Business Optimism Dips, Raising Concerns for Franchise Owners

small-business-optimism-dips-raising-concerns-for-franchise-owners

Photo of Roof Scientist truck and trailer

Roof Scientist Expands Into Northern Indianapolis as Entrepreneur Dale Speckman Launches New Business in Fishers

roof-scientist-expands-into-northern-indianapolis

Image of Donald Trump pointing with red stripes in the background

August 1 Tariff Deadline Is Said to Have ‘No Extensions’: What This Could Mean for Franchises

august-1-tariff-deadline-franchise-impact

What June’s Jobs Report Means for the Franchise Industry

what-junes-jobs-report-means-for-the-franchise-industry

Hooters Leans Into Franchising With Closure of 30 Company-Owned Stores - Agg - 1851 Franchise

Hooters Leans Into Franchising With Closure of 30 Company-Owned Stores

hooters-franchise-model-company-owned-closures

Technomic Releases Annual Ranking of the Top 15 Fast-Food Chains in the U.S.

technomic-releases-annual-ranking-of-the-top-15-fast-food-chains-in-the-us

The Ultimate Guide to Selling Franchises: How To Create a Strong Incentive

how-to-build-strong-incentives-to-attract-prospective-franchisees

Kansas Couple Revitalizes Local Childcare With Children’s Lighthouse

From Corporate Careers to Community Roots: Kansas Couple Revitalizes Local Childcare With Children’s Lighthouse

kansas-couple-opens-childrens-lighthouse-gardner-olathe

From Prescriptions to Pastries: Kari Khandelwal Creates a Comforting Community Bakery 

From Prescriptions to Pastries: Kari Khandelwal Creates a Comforting Community Bakery in Overland Park, Kansas

paris-baguette-franchise-overland-park-khandelwal

Hely and Hiral Patel Bring Their Longtime Dream to Life With The Brass Tap

How COVID-19 Forever Changed the Restaurant Industry

MORE STORIES LIKE THIS