Consumers are likely to stay away from in-restaurant dining for the next two months, as concerns around infections continue to prevent them from stepping out. Instead, diners are likely to opt for takeaways and home deliveries, a survey by LocalCircles has said.
So far, only 2% of those surveyed by LocalCircles have visited restaurants, while 28% of those surveyed said they have consumed restaurant food but most opted for in-home ordering.
LocalCircles said the trend is likely to see an incremental change over the next two months, with slightly more consumers opting for restaurant food but doing so largely through ordering in.
Only 3% of those surveyed said they plan to visit restaurants several times to eat out over the next sixty days and 6% said they plan to visit restaurants just a few times to eat out; while 22% said they have no plans to visit a restaurant but will do home delivery of restaurant food a few times, the survey findings said.
However, a significant 64% said they have no plans to visit a restaurant nor do home delivery of restaurant food.
“This shows that only 34% citizens are likely to consume restaurant food in the next two months and most of them will order food at home instead of going for a dine out,” the survey showed.
LocalCircles conducted a survey to understand out-of-home food consumption in the past two months, and whether diners will continue ordering in or visit restaurants over the next two months. The survey received 33,000 responses.
The Ministry of Home Affairs allowed restaurants to restart operations under Unlock 1.0 from 8 June.
“It has been 3 months since restaurants became operational and although the industry was quite happy with the decision, consumers have largely stayed away from eating out due to the covid-19 fear,” the report said.
The restaurant industry has been severely impacted by the lockdown, restrictions on opening hours, and the need to maintain social distancing has been a strain on revenues for the industry that employs millions and thrives one regular footfalls. The industry is expected to see closures of 20-30% of restaurants, according to various estimates.
While, several restaurants were quick to scale up their delivery and enable takeaways, the business is far from seeing any recovery. Yogeshwar Sharma, executive director and CEO, Select CityWalk said that takeaways from the mall’s food courts and restaurants have seen a significant jump since the mall re-started operations in June.
In fact, estimates by a recent business survey by the Retailers’ Association of India suggests that in August business at quick service restaurants was down 65% compared to a year ago period.
In its latest unlock guidelines, the government also allowed restaurants to start serving liquor while allowing bars to open up. Though the decision is left on states, the move could help businesses increase revenues.
Interestingly, diners’ favour Indian cuisine while eating out or ordering in, with nearly 50% showing their presence for such food.
The LocalCircles survey noted that many restaurant owners believe their business might improve once outdoor dining is allowed.
“However, with the covi-19 daily case load rapidly rising, the Government may have to sensitise people to limit out of home activities other than for the purposes of earnings and livelihood to contain the spread,” it added.
Restaurants may need to innovate a bit here, cut down on expensive real estate and cost structure, come up with pocket friendly home delivery menus and get and stay connected with the customers they serve, LocalCircles said.
Source: Livemint
