Trends Discussion in the Restaurant Industry

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Nov 24, 2024

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Running head: TRENDS DISCUSSION IN THE RESTAURANT INDUSTRY 1 Trends Discussion in the Restaurant Industry Student’s Name Institutional Affiliation
TRENDS DISCUSSION IN THE RESTAURANT INDUSTRY 2 Trends Discussion in the Restaurant Industry Article Summary The article titled "Building Restaurant Loyalty in the 'New Normal'" by Hutchinson (2021) and published in the QSR Magazine highlights the efforts that restaurants have established to establish customer loyalty due to the Covid-19 pandemic. Specifically, the author believes that restaurants must implement new programs that register higher effectiveness in fostering customer loyalty. Some of these programs may include giving surprises in gifts, personalized rewards, collaborative partner rewards, unique experiences, and points-fueled journeys. Each of these approaches can empower restaurants to develop a broader customer base and appeal to existing customers to increase the levels of loyalty. In the case of experiences, restaurants need to understand customers' expectations in line with the Covid-19 protocols and high levels of hygiene. Many customers expect minimal contact as they enjoy their dining experiences, which will compel restaurants to develop innovative solutions to transform customer experiences irrespective of the pandemic. Analysis Hutchinson (2021) highlights the latest trends in the restaurant industry because of Covid-19. Restaurants experienced multiple adverse effects because of the pandemic. Most of them remained closed during the first months of the pandemic. However, restaurant owners adopted new approaches to meeting customer needs after many states eased the lockdown situation. Currently, restaurants face a critical challenge in fostering customer loyalty as many customers are yet to return to normalcy in the case of their consumer behaviors when it comes to restaurant dining (Mehrolia, Alagarsamy, & Solaikutty, 2021). Hutchinson (2021) provides timely approaches that the restaurant industry can utilize to meet customer needs while increasing revenue during an economically difficult period. The article is of great relevance to the restaurant industry because it provides timely solutions and offers the right approach to enhancing customer loyalty. Hutchinson (2021) categorically highlights the need for restaurants to implement new strategies after the transformations that have taken place in the past year. Many restaurants implemented new business models through innovative approaches to remain operational, protect the wellbeing of customers and employees, and register a measure of profitability. As a result, restaurants are operating under a new set of rules and priorities due to the Covid-19 pandemic. If restaurants are to survive and operate beyond the pandemic, they need to implement innovative ways of enhancing customer loyalty. Particularly, the efforts to foster customer loyalty after massive transformations may prove difficult for restaurants. Customer satisfaction is only possible if restaurants can guarantee hygienic experiences, fast transactions, and minimal contact (Gursoy & Chi, 2020). Moreover, customers expect restaurants to reinforce their online operations and make it easier to order products and receive deliveries promptly. Providing these experiences is one of the most effective ways of enhancing customer loyalty in the current difficult period. The article is relevant to my career area of interest because I would like to play an active role in the restaurant industry. I conceive that the industry needs to develop resilience and innovative ways of responding to customer needs, irrespective of the changes in the business environment. Covid-19 has been one of the unfortunate events that have challenged the existence of the restaurant industry. For this reason, Hutchinson (2021) offers reliable solutions for restaurants that are seeking to increase the level of customer loyalty by offering outstanding experiences and other attractive programs. Many restaurants can relate to the realities highlighted in this article regarding the massive transformations that have taken place over the last year in response to a global pandemic.
TRENDS DISCUSSION IN THE RESTAURANT INDUSTRY 3 References Gursoy, D., & Chi, C. G. (2020, July 3). Effects of COVID-19 pandemic on hospitality industry: review of the current situations and a research agenda. Journal of Hospitality Marketing and Management , Vol. 29, pp. 527–529. Routledge. https://doi.org/10.1080/19368623.2020.1788231 Hutchinson, J. (2021). Building Restaurant Loyalty in the ‘New Normal’ . Retrieved June 18, 2021, from QSR magazine website: https://www.qsrmagazine.com/outside- insights/building-restaurant-loyalty-new-normal Mehrolia, S., Alagarsamy, S., & Solaikutty, V. M. (2021). Customers response to online food delivery services during COVID-19 outbreak using binary logistic regression. International Journal of Consumer Studies , 45 (3), 396–408. https://doi.org/10.1111/ijcs.12630
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