How will corona virus affect food industry?

Covid- 19 is hitting everyone, but food industry is going to be the one of most hard hit industry because, other manufacturing companies can cope with the loss made after this pandemic ends. But, in the case of non manufacturing companies it’s a matter of time always, once it’s lost it’s lost. Also another reason for food industry to less likely revive from some time now is because of threat in people’s mind of getting affected

As per an article in economic time, one of the sectors worst affected by Covid-19 will be food services, estimated at Rs 4,23,865 crore in India and employing more than 700,000 people, according to the National Restaurant Association of India.


 There are other numerous reasons as to why food industry is most likely to get suffered:


  • People will prefer to eat less likely from food stall:

According to experts corona might spread from food that is there in low temperature. Which means this virus stays in food with low temperature for a long period of time.

Second factor is obviously the hygiene of the road side stalls. Third is even if road side stalls manage to maintain hygiene but people will always be susceptible about it because of the fear of not getting affected with it.

  • End of social dining culture:

Social dining has always been one the oldest practices in India. Sitting together in large groups and having meal is very common practice in India or over the world. Be it in the form of gala dinner or be it religious feast in India various times. Again the reason would be the impact in people’s mind because of COVID – 19, issue of hygienity and people will always be ambiguous about their safety while social dining.  As this threat will remain intact in the mind of people for a very long time now.

  • Less online food deliveries:

Although it’s been said that corona will increase online deliveries of food. But according to me corona virus will reduce the amount of online deliveries in India.  Reason being ambiguous minds about where is the delivery boy coming from and what is basic hygiene maintained by the restaurant while cooking and delivering the food. Recently a video got viral in India, wherein a person who parcels food was caught eating the food midway.

Suspicious mindset is a very big factor in India and this incident hiked suspicion more. Although there was no effect seen after that incident on the sale as the online food delivery market was emerging. But people always tend to jot down the entire factor while coming to a conclusion.

  • Covid 19 will hit startups who were striving in many ways:

It is very evident that people who were struggling to step their foot in the market are more likely to get hit in many ways. Be it they don’t have gained trusted customers till now who can trust their service and quality and come to eat their

Also according to an article, which says domestic startups that were in talks with Asian investors, primarily China-based ones, have put them on hold as a direct impact of the pandemic, Therefore its quite evident that many startups are going to struggle with funds..

  • Employees are more likely to lose their jobs:

Foods outlets will remain shut for some time now and the outlet sales are likely to get lower for some time now. Which already have made food services in loss therefore to make sure that the outlet does not get in more loss there will definitely be a cut in employees to maintain the profit.

Although expert says that, this won’t be a good step to take as now every other mode and tourism is on a hold. But, as soon as this gets over people who are starving to go out will do that and this might increase the customers industry starts getting. As food industry needs some trained employee, you just cannot keep anyone in the service as hygiene and quality will be the most important factor customers are going to notice from now, at least at the places they are paying. So to be in the market they will have to do that.

  • Food prices are likely to go up:

In the name of healthy and more quality food, food prices at the restaurant are very likely to skyrocket. Biggest reason being earlier there were restaurants or food stalls who used basic products for cooking but now the situation demands more healthy and quality food.

Another factor will be again supply and demand. Although it’s been said by the government that prices of commodities such as vegetables etc won’t go up but practical picture gives a different image.

  • Non vegetarian food outlets are more likely to suffer:

With rumors still sticking that corona virus spreads especially through non-vegetarian food like eggs, chicken, mutton and seafood. Although government and other bodies such as World Organization for Animal Health (OIE) as well as the Indian food safety regulator FSSAI have stated that there is not a single evidence to prove transmission of corona virus from animals to human and asked people not to pay attention to them.

But again the fear of what if will surely hit their sales for at least some time from now.

  • Catering industry is going to get slow for some time:

As per my research and prediction about catering industry they are going to slow for some time now again the reason being people will be less likely interested in having a big function, the function are going to be small for some time now which will slow the market of catering industry. The price of commodities is going to get high because of this.

  • Slow down of transportation (flights, and other mode of transportation):

Curb on transportation will not allow tourism in India which is going to be a very big factor for slowing down of sale. And also their will be less tourism in the corona hit countries in the near future. Therefore this is going to be another reason why food outlets sale might go down.


What could be done to allay the repercussions from covid- 19


  • People have started using up selling techniques to keep business afloat. A restaurant in gurgaon has been giving people movie tickets along with their meal in order to catch eye of their customers which probably is one of the good things to retain in the business.
  • With people having hygiene as a most important factor for not going out to eat or using any outlet services. It’s the time to use hyper hygiene methods and at the same time it’s very important to make customers believe that everything is being done to make customers not suffer.

Hyper hygiene steps involve:

  1. Using sanitizer every often by every individual who is the part of outlet.
  2. Sanitizing every other thing on frequent intervals including the outlet and places nearby,
  3. Reminding people not share cutlery, plates etc while they are a part of some family meal.
  4. Videos always running down in big screen reminding people about important steps to be taken.
  5. A big projector screen which specially should be formulated to see if everyone is following hygiene checklist.
  6. Supply of proper masks and gloves to the staffs specially the kitchen staff and service people.

7. Body temperature to be checked before anyone enters the zone.

8. Biometric system that every other company uses shouldn’t be used to lessen the chances of people getting affected because of that.

  • Big name in the market can explore other business channel to cope up their sales and to utilize everything to the maximum. This also might be the time where they can experiment with new things they wanted to do in the past.

Let us know in the comment section what do you think might alleviate or aggravate the impact in the food industry?

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