Operations

11 ways the pandemic has permanently marked the industry

Nick Vojnovic, president of Little Greek Fresh Grill, shares 11 long-term ways the pandemic has changed the industry.

Nick Vojnovic, president of Little Greek Fresh Grill, shares 11 long-term ways the pandemic has changed the industry. Provided

December 4, 2020

By Nick Vojnovic, CEO Little Greek Fresh Grill

What will our industry footprint be after COVID-19? It's obvious it will be a different landscape for all of us.

This pandemic has turned our industry world upside down and twice again. Not to sound like a cliche, but we now have a new reality.
Following is a list of 11 predictions that I believe we need to recognize, whether we like them or not.

1. Unfortunately, delivery is here to stay. Our delivery sales have doubled from 16 to 31% of sales since March. Uber Eats seems to be winning. The customer is driving this current and future trend.
2. Catering has tanked from 10% to 2% of sales. Slowly coming back but may not with the current way. We are social people and look forward to gathering to gain that sense of interaction. Time will tell here.
3. Closures are up 10%, not as bad as I predicted. It seems like other than larger full-service locations, there is demand for smaller spaces. We shall see how this plays out.
4. Landlords seem a little more flexible and willing to deal. There are some amazing second-generation (closed restaurants) coming up. It never hurts to ask. Don't be afraid to negotiate.
5. Unfortunately, our general contractors are not in the same boat and are still fairly pricey. If the pandemic continues for much longer, could this change?
6. Apparently, construction supplies are going up as well. For 2021, consider this in your store budgeting.
7. Food costs seem to be stable after quite a few jumps in the spring. Let's hope this continues for the near future.
8. Go small. I think dining rooms need to shrink. At Little Greek, we are going for 1,200-1,500 square feet. Better to fill a smaller space than having a larger one go empty.
9. 9. Menus should shrink as well. Go with the items that travel well and move. Once things return to "normal," the surviving locations should be quite busy with pent up demand and fewer seats.
10. Chains should consider spreading locations further apart as delivery fills the gaps. This should add some efficiency to your bottom line.
11. I'm not sold on ghost kitchens, but then I once thought Amazon would not make it. It might work for you.

This impact from this pandemic is far from over. I believe 2021 will bring our industry challenges as well as opportunities — some are ahead that we don't see yet. With some fortitude and perseverance and luck, we might even come out stronger than ever. Good luck and best wishes for a new year…stay safe

Nick Vojnovic is president of Tampa.-based Little Greek Fresh Grill. with multiple locations in Arkansas, Florida, Illinois, Kentucky, Ohio and Texas). Vojnovic is also a partner in Green Market Cafe Franchising.