Startups Helping Restaurants to Get Back To Business
Today we are going to talk about an interesting article on how startups are helping restaurants to get back to business that we came across in crunchbase news.
There are certain industries which were mainly hit due to the Corona pandemic and restaurant industry is one of them. At this time, startups' response to their challenges has made it a much better situation for them to reopen. As per a survey with a dozen people in the restaurant app scene, including startup founders and venture capitalists, to see how they are helping restaurants add technology.
There has been a significant decline in the number of footfalls at restaurants since the pandemic has hit. There was only a 2% rise in the number in the beginning of the year, as compared to last year and then a significant fall of 60-70% when all the countries came under lockdown situation. Now only the places who were ready to adopt some technological advancement for their restaurants to have an edge, like on line delivery portals , got a chance of survival after this. Technical creativity came into play.
The startups who design restaurant apps helped a great deal with this. There were some places who had dine in along with take away services, that stuck to just the take away services later and in the middle of Covid. The places who did not have such services either caved into it or had to switch to it. So these startup apps showed a huge potential and attracted a lot of investors. As investors could see that online delivery is going to be the next big hit in restaurant business. As per the data , $800 million was invested in 49 deals in 2020, as of Sept. 22, when compared to the $1.6 billion invested in 2019, it seems the funding amounts are on par in 2020. The largest deal among the 49 this year belonged to restaurant management startup Toast, which announced $400 million in new funding in February, boosting its valuation to $4.9 billion.
Now one needs to understand the role of these apps. The restaurants get a large number of calls and they miss a lot of them because they are too busy to attend each and every call. Now when they use any such applications, they can easily leave the call attending at their end and just care about preparing the orders and satisfying the customer base. One such example is NUMA, a text answering service and virtual receptionist platform. Numa saw a large number of increase in restaurant approach to them for taking their calls. Virtual Kitchen, which builds delivery-optimized kitchens, and curbFlow, a platform that partners with on-demand delivery companies such as DoorDash, helped restaurants quickly get up-and-running with delivery.
So this is the future now, whether restaurant owners are ready for it or not. Startup owners must find and seize the opportunity here. “Everyone is going to have to change, regardless, because consumer habits are going to change. Delivery and takeout operating modes will be important for the next year.”- Alan Hayman, president of Hayman Consulting Group.