The restaurant industry, with its tight profit margins, is brutal even at the best of times.
Now COVID-19 has weakened its already fragile financial structure. Between March and the end of May, the restaurant industry had already lost $ 120 billion in sales, according to research by the National Restaurant Association.
But in addition to exposing some of the industry’s fundamental problems, the ravages caused by the coronavirus have also highlighted the critical role restaurants play in boosting other parts of the economy.
“We are banks,” says Momofuku chef and founder David Chang. “We just don’t have the money and we charge interest. We are banks that bring it in and ship it right away to a variety of things, from florists to bakers, suppliers, farmers and employees. “
Chang spoke to us for the first episode of “Reinvent,” a podcast about struggling to thrive in a world turned upside down by the coronavirus. For the inaugural episode, we take a look at how COVID is remaking the restaurant industry.
Chang is one of the most influential figures in the food world. In addition to his restaurant empire that began in 2004 with Momofuku Noodle Bar, Chang also has a podcast, a Netflix series, and a recently published memoir, Eat a Peach.
The pandemic has forced Momofuku to close two of its restaurants, but the company is also accelerating its five-year plan for 50% of its revenue to come from outside the four walls of its restaurants through efforts such as the sale of Momofuku brand consumer packaging. . . . . goods.
Basically, Chang believes that Momofuku can survive as a restaurant company if he looks beyond his restaurants. He says the company has always known that it needs to “branch out for bad times.”
I don’t know. I don’t know if we can make lemonade out of that. I need to believe we can.”
Melissa Wilson, director of industrial consultancy Technomic, shared Chang’s perspective that tough times are ahead.
She hopes restaurants will implement technology like ultraviolet portals that “knock it out” as you walk through the door.
