Food service industry encompasses all of the activities, services and business
functions, by any establishment, involved in preparing and serving meals and snacks
to people for immediate consumption on site. This includes restaurants, carryout
operations, cafeterias, university dining halls, catering and vending companies,
hotels and inns, and rehab and retirement centers.
This industry is divided into two groups: Those that prepare and serve food
and those that produce and distribute food, equipment, and services needed by food
providers. The first group usually involve front of the house people and back of the
house people. The former includes bartenders, wait staff, hosts and busboys. The
latter includes chefs, cooks, managers and dishwashers. The second group includes
producers and distributors of food, equipment, and services, include equipment
suppliers and food and beverage suppliers.
It has been a part of one’s life to have a meal from these industries. It’s either
to celebrate an occasion, or a family just want to try food different from home-made
ones, or for an after-school meal, or because it’s enticing. There are a lot of reasons
as to why these establishments exist. In America, increasing hectic lifestyles make
cooking at home a challenge, so the restaurant and food industry enjoys steady
growth. The National Restaurant Association also expects industry sales of more
than $899 billion for 2020. These numbers suggest steady employment for workers.
As COVID 19 has emerged and affected every life around the globe, this
specific industry suffered from the pandemic. The coronavirus pandemic has
disrupted current growth in the industry due to the forced closing of restaurants and
subsequent loss of sales and jobs. Since restaurants, pubs, fast food chains and
others within the same industry has stopped from accepting customers to enter their
establishments during the start of this pandemic, they have had difficulty to continue
to operate.
However, to those who were able to offer delivery and pick-up, this situation
has been to their advantage. There were increase in order volumes as this mode
was more convenient for the consumers. Thus, to some who weren’t able to adapt,
they were forced to liquidate and go out of business. It should also be noted that the
food industry is tied to the economy. When the economy drops, people tend to cut
back what the perceive as luxuries, which can include dining out.
For a company to continue as a going concern, there shall be management. If
in case a management doesn’t cease trading or has no intention to liquidate, but has
no choice but to do so, then the going concern concept stops there. Therefore, in
order for the company to remain in the industry, they need to adapt new ways of
marketing and rendering services to customers.