Impact of COVID-19 on the Food Services Sector

The global pandemic has changed the map of the hospitality industry. The food service sector, being an important part of the hospitality industry is hit badly. It was a fastest growing sectors of the country which was estimated to grow at a CAGR of over 12 percent through 2020. But with the pandemic, the situation turned upside down and by May 2020 India’s organized dine-in restaurants experienced 40 -50% cut in their revenue. Many key growth drivers for the sector like youth employment, women employment and growth of tours and travel are badly hit by COVID-19, consequently keeping demand for the sector suppressed. The supply is not picking up for following the government guidelines to maintain social distancing norm. Most of the player, small or large are struggling to meet with working capital requirement, winning over consumers confidence and retaining their employees. The industry’s associations are approaching government at different level to work out some support that can help them to sail through. The associations are leaving no stone unturned in negotiating with allied activities to join hands in minimizing the burden. Many players, in individual capacity are adapting to the new models of business to face the world in the changed scenario