Hospitality Businesses Continue With Change

Hospitality Businesses Continue With Change

After such a long period of economic stress, establishments must rethink their operations to become as profitable as possible. Here is how that will likely happen.


In some areas, cities closed portions of streets so restaurants and bars could expand into the road. If this trend continues, it could lead to entire city portions dedicated to hospitality businesses. Outdoor dining experiences would reach new heights, helping to meet reopening guidelines while attracting new customers.

One study found that 43% of Americans over age 13 plan to spend more time outside amid social distancing regulations. Restaurants that expand their outdoor seating can capitalize on this growing consumer segment.


Full-service restaurants, as the public knows them today, may fade. With limited seating and increased pressure to maximize profits, the traditional model may prove insufficient. Many reopening restaurants will change their business model, at least temporarily, as a result.

One of the most likely trends to take off is the “ghost kitchen,” also called virtual or cloud kitchens. These businesses, which only offer delivery or takeout, are rising in popularity already as a means to withstand pandemic-related losses. Since ghost kitchens are cheaper to set up and can meet higher order volumes, they may prove more profitable.

Virtual kitchens also feature no dining area, so they already comply with reopening restrictions. Similar solutions are also likely to rise, like food trucks or pop-up restaurants. These business models don’t need dining spaces to succeed and can reach a broader audience, increasing revenue.


Reopening restaurants need to become as profitable as possible, as quickly as they can. Months of sustained losses have left the industry in dire need of cash flow, so recovery needs to come quickly. As a result, many restaurants will likely streamline their menu to reduce costs and maximize revenue.

Restaurants can cut out items with smaller profit margins to focus on more cost-effective offerings. As this strategy starts to bring in revenue, businesses can consider expanding their menu once again. Recovery is typically a long process, though, so menus will likely remain relatively lean for some time.


Full-service restaurants face another challenging period as lockdown restrictions begin to ease. Recovery won’t come immediately, and they’ll likely have to make some considerable changes for it to happen at all. Those that adapt the quickest and most effectively will see the greatest success in the coming year or two.

Flexibility has always been essential in the restaurant industry, as it deals with a fickle public. Amid the pandemic, years of change seem to be happening all at once. Restaurants have to adapt faster than they ever have, whether it be accommodating guests with outdoor food service or making individuals comfortable when dining in. But if they can do that, they’ll emerge from the pandemic stronger than ever.

About the Author: Cora's passion is to inspire others to live a happy, healthful, and mindful life through her words on Revivalist – wholeheartedly convincing them that everyday moments are worth celebrating. Cora has spent 5+ years writing for numerous lifestyle sites - hence her sincere love for both life and the beauty of style in all things. Keep up with Cora on Twitter, Pinterest and Facebook.