After the initial shock of lockdowns at the start of the COVID-19 pandemic last spring, operators and their suppliers regrouped.
It became clear that takeout and delivery were the way forward.
Some operators were good to go, but others realized they weren’t set up for the volume and had too few workers or delivery drivers in place. Many restaurants also realized not everything on their menu was compatible with takeout.
“Steakhouses and fine dining had a harder time with takeout,” says Joe Lavoie, general manager of Richmond, BC-based Neptune Fresh Produce Inc. BB #:334248
“Pizza operators have pretty much always done their own deliveries, but 80 to 90 percent of other concepts rely on third-party apps such as Uber Eats, Grubhub, and DoorDash. An issue is the apps add on a fee that’s a high percentage of sales. Then there’s a risk that delivery apps could open a ghost kitchen, and independent restaurants could lose control of their brand.”
Emily Kohlhas, director of marketing for wholesaler John Vena, Inc. BB #:104221 in Philadelphia, says, “We found the transition to carryout and delivery led many restaurants to reduce the size and/or scope of their menus and focus on sturdy ingredients that can be used across menu items. Chefs just haven’t been able to risk bringing in high-value, highly perishable items when the environment has been so unpredictable. Luckily, things are improving.”
“As consumers continue to long for restaurant-quality experiences at home, restaurants and ghost kitchens are going to feature foods that transport well both in quality and appearance,” explains Natalie Shmulik, CEO of The Hatchery, a food business incubator and service provider in Chicago.
“Smaller, more specialized menus have increased in popularity to better support carryout and delivery performance.”
New York foodservice distributor Baldor BB #:121770 successfully pivoted from traditional restaurant customers to takeout services and home cooks. Explains president Michael Muzyk, “By launching home delivery to consumers, we adjusted down from foodservice sizes.
“For example, we contacted our carrot suppliers and arranged so half our orders were for the usual 50-pound bags, the other half 3-pound bags. For our foodservice business, takeout became the saving grace. Initially, it was only two percent of restaurant sales—an afterthought—but now it’s essential.”
This is an excerpt from the cover story of the July/August 2021 issue of Produce Blueprints Magazine. Click here to read the whole issue.
