Food for Thought: The Changing Face of the F&B Industry

Food for Thought: The Changing Face of the F&B Industry

Offering minimum guaranteed orders to vendors, price protection, flexibility in worker hiring, financial support to vendors, and so on are some corrective measures that the industry should adopt.

By Sandipan Mitra, Co-founder & CEO, HungerBox

Apr 01, 2022 / 9 MIN READ

Whether one ‘eats to live’ or ‘lives to eat’, food is very often best enjoyed in the company of others – colleagues, friends, loved ones, and extended family. Cafeterias are not only places for office workers to eat, they are also a space for crucial social interaction, for colleagues to unwind and relax. ‘Community dining’ will always remain a vital component of the overall F&B experience at institutions such as offices, schools, colleges, hospitals, manufacturing facilities, food courts, and multiplexes.

Similarly, while ordering food delivery may be convenient for those who are home-bound, dining out at a restaurant has its own charm. Taking a break from home-cooked food and experimenting with new cuisines can be an exciting experience. 
 
The food industry is often called ‘recession-proof’, but thanks to the pandemic, F&B in India has seen seminal changes. The lockdowns and other disruptions have caused widespread havoc. Millions of F&B businesses have had to close. Others had to transform their operations, virtually overnight, to survive. 
 
Disruption of the Food Ecosystem 

Before the pandemic, the F&B sector was seeing unprecedented growth. Millions of F&B entrepreneurs thrived across the length and breadth of the country. However, the lockdowns, abrupt shutdown of businesses, reverse migration of workers, massive inflation in commodity prices led to significant disruptions within the sector. In our estimate, nearly 75 percent of food businesses have shut shop in the last 12-18 months. This crisis is a huge challenge for our industry, and it's imperative for everyone involved in F&B, from large institutional buyers/ clients to food consumers, to work together to restore the entire food ecosystem. Offering minimum guaranteed orders to vendors, price protection, flexibility in worker hiring, financial support to vendors, and so on are some corrective measures that the industry should adopt. If the industry does not support food vendors at this time, there's a danger of food price fluctuations and supply disruptions, especially in the institutional setting.
 
Here are three other critical developments the pandemic has triggered in the institutional F&B space:-

Accelerated Digitalization- With the promise of a pandemic-free world being ephemeral, a pragmatic acceptance that Covid is here to stay drives current thinking. The default situation isn’t one where Covid-19 has been wiped off the face of the earth; instead, it’s a scenario where the virus is part of everyday life, and yet, work and life carry on.

Interestingly, even in early-2021, institutions ranging from ITES companies, banks, manufacturing facilities, healthcare, and educational institutions, were still tentative about the roll-out of digitalization in their F&B operations. These views changed with India's second wave in April 2021, and ever since, institutions have embraced F&B digitalization at a breakneck pace.  

To enhance safety, companies have turned to technology that can minimize human contact and the risk of contamination within areas where staff are prone to contracting the virus. User flows into cafeterias are regulated to ensure decongestion and crowd management. Contactless payment options are provided to eliminate the risk of virus transmission due to cash handling. Kitchen operations based on prescribed FSSAI standards envelop raw material handling, food preparation, kitchen hygiene standards, and food transportation. Logs for sanitization, cooking temperature, cleaning checklists for premises, transport, etc., are maintained. Once the food reaches the cafeteria at an institution, stringent standards using technology are implemented across foodservice and safety, food ordering, counter hygiene, café hygiene, and café monitoring.

Beyond Safe Cafés to Safe Office Spaces and Facilities - In the context of Covid-19, a directive from the UN states: no one is safe until everyone is. Consequently, no place is secure unless every area is protected against virus transmissibility. It's not enough for COVID protocols to be in place within the café alone; the high transmissibility of new Covid variants means user behavior within a campus, mall, or facility has consequences above and beyond the F&B environment. Besides F&B digitalization, workspace safety and automation are critical. Technology that regulates the implementation of Covid-safe protocols plays a crucial role in regulating the usage of utilities such as company transportation, conference rooms, rest & recreation facilities, and food courts.

Dietary Changes - The pandemic has driven home the point that nothing should take precedence over our overall health and well-being. Nutritious food is at the heart of good health. Before the pandemic, we’ve observed a significant majority of café users consuming food that could be classified as junk. As compared to healthier alternatives, oily, spicy, fried, sugary, and food high in fat content was the order of the day. Although these foods seem satisfying, they can result in myriad health issues ranging from digestive illnesses to chronic diseases. The pandemic triggered widespread anxiety and concern about our health and immune systems. Eating habits have undergone a drastic transformation after reports suggested that boosting immunity helped build resistance and minimize the after-effects of the virus.

Immunity-boosting foods such as amla, ginger, lime, and turmeric saw a dramatic surge in demand as people began to embrace age-old, traditional diets once again. As people adopt, they have also gravitated towards healthier food choices and prefer fresh, hygienically prepared meals. F&B brands have revamped menus in office cafeterias to ensure healthy pre-packed meals prepared in hygienic environments. The presence of traditional ingredients in meals is likely to become standard practice.

The F&B sector in India employs millions of workers and generates billions in revenue. Although the industry has faced an unprecedented crisis following the pandemic, there are encouraging signs that recovery may be underway thanks to a quicker uptake of digitalization, heightened safety standards and protocols, and the adaptation to changing consumer demands. 
 

Whether one ‘eats to live’ or ‘lives to eat’, food is very often best enjoyed in the company of others – colleagues, friends, loved ones, and extended family. Cafeterias are not only places for office workers to eat, they are also a space for crucial social interaction, for colleagues to unwind and relax. ‘Community dining’ will always remain a vital component of the overall F&B experience at institutions such as offices, schools, colleges, hospitals, manufacturing facilities, food courts, and multiplexes.

Similarly, while ordering food delivery may be convenient for those who are home-bound, dining out at a restaurant has its own charm. Taking a break from home-cooked food and experimenting with new cuisines can be an exciting experience.  The food industry is often called ‘recession-proof’, but thanks to the pandemic, F&B in India has seen seminal changes. The lockdowns and other disruptions have caused widespread havoc. Millions of F&B businesses have had to close. Others had to transform their operations, virtually overnight, to survive.  Disruption of the Food Ecosystem 

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