COVID helped create ‘a relationship with the restaurant’ via online orders

A tough year for the food court is ending as it started: with waves of new COVID-19 infections threatening the outlook as vaccination mandates, labor shortages and inflation render the tough jobs in the service sector even more difficult.

Yet Krystle Mobayeni, CEO and founder of BentoBox restaurant site platform, told Yahoo Finance that the Omicron wave had not deterred the struggling industry. Restaurants continue to “get creative” to fight the tide, she insisted, and use the pandemic to deepen their connection with customers.

The executive cited a recent example of a restaurant that was forced to close due to a case of exposure to COVID-19. But instead of sitting idle, the restaurant turned to creating Christmas meal kits to generate additional income.

It’s a sign of the times as restaurants continue to learn from pandemic hurdles – with many transfers to digital channels and online orders to stay afloat.

Mobayeni noted that BentoBox customers have seen a 10% increase in online order size week-over-week, with hard-hit states like New York and Illinois seeing order volumes increase by up to at 15%.

Overall, online direct order volume jumped 54% year over year as customers wary of COVID rely more on takeout and delivery.

Based on data from BentoBox, restaurants saved $ 38.5 million in commission fees by switching to direct ordering online, rather than relying on third-party delivery apps like Grubhub, Doordash (DASH) and Uber Eats (UBER ).

“I think there is a change in consumer behavior,” Mobayeni said, explaining that consumers now want to have “a relationship with the restaurant” even if they don’t dine inside.

“Diners are starting to go directly to restaurant channels and contact the restaurant directly. This direct relationship becomes a much more permanent one because it’s just something consumers want,” she added.

Small restaurant chains that may not have the brand recognition or exposure to compete with big name delivery apps, have used automation tools such as social media and promotional campaigns by e-mail to build better relationships with consumers.

The story continues

Other creative initiatives include the rise of ghost kitchens – operations without servers, dining rooms, and parking. The new concept (up 100% on the BentoBox platform) helps restaurants meet demand with less overhead as prices continue to rise and supply chain issues persist.

“This has become much more prevalent in conjunction with rising operating costs, so restaurants [were] forced to find new efficiencies, ”Mobayeni said, assuming the concept will continue to be popular in 2022.

Labor shortages persist

Yet labor shortages continue to pose the greatest challenge to besieged restaurants.

Jobs in the restaurant industry have increased, but have yet to reach pre-pandemic levels, according to the latest BLS report. Currently, the industry is short of more than 750,000 jobs compared to March 2020.

Mobayeni warned that the labor shortage is “here to stay”, and noted that restaurants have had to pay more to attract new hires and retain staff, with labor costs rising by 80 % to 85%, she said.

Still, automation continues to be key with more and more restaurants allowing technology to handle operational tasks – “a trend we’re going to see progress in 2022,” the CEO added.

Alexandra is a producer and entertainment correspondent at Yahoo Finance. Follow her on twitter @ alliecanal8193

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