Discusstiontopic an analysis of thefbindustryduring and after covid19 padamic

INTRODUCTIONThe COVID-19 pandemic has had a profound impact on the food and beverage F&B industry worldwide.. With lockdown measures, restrictions on dine-in services, and changing consu

THUONG MAI UNIVERSITY FACULTY OF HOSPITALITY AND TOURISM

-DISCUSSTION

TOPIC: AN ANALYSIS OF THE F&B INDUSTRY DURING AND AFTER COVID 19 PADAMIC

Teacher : Dam Thi Hong Nhung Subject : Professional English 1 Class : ENTI1011

GROUP DISCUSSION Presentation assessment: List of students

Pham Xuan Lam 21D110117 Member 4.Solutions

Nguyen Phuong Linh 21D110010 Leader 3. How F&B industry

recover after COVID 19?

Nguyen Thi Linh 21D110119 Member Powerpoint

To Khanh Linh 21D110276 Member Word + Introduction +

Conclusion

Phan Van Loc 21D110239 Member 1 What is food and

beverage industry?

Tran Quang Minh 21D110123 Member

2 How F&B industry

COVID 19?

Table of Contents

I INTRODUCTION 1

II BODY 2

1 WHAT IS FOOD AND BEVERAGE INDUSTRY? 2

2 HOW F&B INDUSTRY WAS AFFECTED BY COVID 19? 2

3 HOW F&B INDUSTRY RECOVER AFTER COVID 19? 3

4 SOLUTIONS 4

III CONCLUSION 7

I INTRODUCTION

The COVID-19 pandemic has had a profound impact on the food and beverage (F&B) industry worldwide With lockdown measures, restrictions on dine-in services, and changing consumer behavior, many businesses in the F&B sector have been forced to adapt quickly to survive

In this analysis, we will explore the challenges that the F&B industry faced during the pandemic, including decreased foot traffic, supply chain disruptions, and increased costs due to safety measures We will also examine the strategies that businesses have implemented to stay afloat, such as offering delivery and takeout services, investing in online platforms, and creating innovative menu options

Furthermore, we will discuss the long-term effects of the pandemic on the F&B industry and how businesses are positioning themselves for recovery This includes changes in consumer preferences, shifts in dining trends, and the potential for continued reliance on digital technologies

By examining the impact of COVID-19 on the F&B industry, we can gain insights into the resilience and adaptability of businesses in this sector, as well as the opportunities and challenges that lie ahead

II BODY

1 WHAT IS FOOD AND BEVERAGE INDUSTRY?

The food and beverage industry encompasses businesses involved in the production, processing, distribution, and sale of food and drinks to consumers This sector is incredibly diverse and includes a wide range of businesses, from large multinational corporations to small, local producers and retailers

The food and beverage industry is essential for providing consumers with a wide variety of food and drink options while also contributing significantly to the global economy It is a dynamic and ever-evolving sector that is influenced by factors such as consumer preferences, technological advancements, sustainability concerns, and regulatory changes

What is COVID 19 pandemic? The COVID-19 pandemic refers to the global

outbreak of a novel coronavirus known as SARS-CoV-2, which emerged in late 2019

in Wuhan, China The virus causes a respiratory illness known as COVID-19 (Coronavirus Disease 2019) The World Health Organization (WHO) declared COVID-19 a Public Health Emergency of International Concern on January 30, 2020, and later characterized it as a pandemic on March 11, 2020

The virus quickly spread to other countries and continents, leading to widespread transmission and significant public health, social, and economic impacts worldwide The COVID-19 pandemic has resulted in millions of confirmed cases and deaths globally, overwhelming healthcare systems in some regions and causing disruptions to daily life on an unprecedented scale

Overall, the COVID-19 pandemic has had far-reaching consequences for individuals, communities, and societies worldwide, highlighting the importance of global cooperation, scientific research, and public health preparedness in addressing emerging infectious diseases

2 HOW F&B INDUSTRY WAS AFFECTED BY COVID 19?

Revenue decreased seriously: Customers are the biggest source of revenue for

businesses In the context of social distancing due to the pandemic, stores, restaurants, and bars are extremely empty, causing total industry revenue to decline seriously Many bookings from the beginning of the year to June were canceled, causing significant losses for service businesses

Countless restaurants had to close and transfer: Due to the severe decline in

customer numbers, businesses still have to pay fixed costs such as premises, staff, raw materials, etc., so the cost pressure is huge, so businesses have to closing or worse, transferring the store TOKYO Deli chain stores announced the closure of nearly half

of their stores in Hanoi, TOKYO Deli's competitors also closed half of their establishments in Hanoi, SoYa Garden closed 40 out of 50 establishments due to a loss

of 170 million VND one day For Golden Gate brands, the Gogi House chain temporarily stopped operating 5 stores in Hanoi, similarly, the Kichi-Kichi brand also announced the closure of 7 restaurants

Many employees are unemployed because restaurants and hotels cut staff to reduce costs: The number of customers has decreased sharply compared to usual due

to social distancing, but all costs to maintain the store still have to be paid such as raw materials, machinery, equipment, and staff wages every day Many restaurants, hotels, and cafes have had to give employees unpaid leave or reduce working hours and receive basic salary to overcome the dire economic situation during this time This leads to many people having no income, greatly affecting their lives

The epidemic makes importing and exporting raw materials extremely difficult: Due to trade closure policies, import and export is extremely difficult, this

directly affects restaurants, bars, etc due to the need to ensure the quality of ingredients and preservation of ingredients It is also extremely difficult when the number of customers decreases so they cannot consume, especially the ingredients used during the day

3 HOW F&B INDUSTRY RECOVER AFTER COVID 19?

According to Mordor Intelligence, the F&B industry in Vietnam would expand

at 8.65% annually in 2021-2026 The compound annual growth rate from 2021 to 2025

is projected at 4.98% Experts anticipated that the market size will reach 678 million USD, with the predicted number of consumers being 17.1 million by 2025

After experiencing two years of the pandemic, the F&B market has undergone many fluctuations After the period of social distancing, the demand for this industry has shown a strong recovery By 2023, the market value was expected to increase by 18% compared to 2022, reaching 720 trillion VND After the recovery, the F&B

market will continue to develop at a stable pace and is expected to reach a value of up

to 938.3 trillion VND by 2026

The pandemic Covid-19 has substantially changed the landscape of F&B towards digital transformation Thus, the application of technology to the F&B has helped this market in Vietnam back on track after two years of difficulties due to the pandemic With the support of technology, the recovery time for production and business activities of F&B enterprises is also forecasted positively 47% of enterprises are estimated to recover in six months, 33% of enterprises from 7-12 months, and 13% after more than 12 months

Some well-known F&B companies namely Starbucks, the Coffee House, Yen Sushi, among others, have set up their own online store to adapt to the Covid-19 situation and increase the customers’ experience Further, F&B companies also cooperate with ride-hiding firms such as Baemin, Grab and Shopee Food to maintain their operation

4 SOLUTIONS

a What should the government do to develop the F&B industry?

The Vietnamese F&B industry has shown resilience throughout the pandemic, but there's room for significant growth Here's how the government can help:

Financial support: The government could provide financial assistance

packages such as tax exemptions, low-interest loans, or direct financial support to help F&B businesses overcome financial difficulties and expand Financial assistance helps F&B businesses recover from the financial setbacks caused by the pandemic It enables them to invest in necessary upgrades, expand operations, and innovate, thus stimulating growth and ensuring their sustainability and create new products and services

Infrastructure investment: The government could invest in infrastructure such

as transportation networks, storage facilities, and food processing plants Improving this infrastructure would enhance the efficiency of the F&B supply chain, reducing costs associated with transportation, storage, and processing Improved infrastructure also attracts investors and fosters economic development in the sector

Promotion of food tourism: The government could promote culinary tourism

by organizing promotional events, exhibitions, or supporting culinary tourism

packages This would increase income from tourism and create new business opportunities for local F&B businesses, which would not only benefit local businesses but also enhance the country's image as a culinary destination

Technology adoption: F&B businesses could be encouraged to adopt new

technologies to optimize production processes and improve service delivery This includes implementing online ordering systems, delivery services, and automation in production processes Embracing technology streamlines operations, improves efficiency, enhances the customer experience, and also adapts to changing consumer preferences and market demands more effectively

By implementing these measures, the Vietnamese government can empower the F&B industry to not only recover but thrive in the post-pandemic world

b What should F&B company do to grow the F&B industry?

In the wake of the pandemic, F&B companies in Vietnam have a great opportunity to contribute to the industry's growth To foster their growth, F&B companies can take several strategic:

Innovate and diversify products: Businesses should innovate their products to

meet changing consumer preferences and requirements, providing nutritious and fresh options that satisfy consumers' growing health Also, use eco-friendly packaging, source ingredients responsibly, and highlight these efforts to attract environmentally conscious customers Product innovation helps businesses attract customer attention, create uniqueness for the business, and adapt to changes in market preferences and needs

Enhance customer experience: Customer experience is an important part of

building relationships with customers so providing excellent service and creating impressive experiences help businesses build a loyal customer base and increase business development opportunities Businesses need to prioritize hygiene and safety, providing personalized service by thoughtfully training staff and responding to individual customer needs, thereby creating a welcoming atmosphere, cleanliness, and pleasant music to create a positive dining experience and deliver memorable dining experiences that promote repeat visits and positive recommendations from consumers

Collaborate and build community: Build partnerships with local suppliers and

farmers to purchase fresh, high-quality ingredients Supporting local suppliers not only

ensures fresh products but also contributes to the local economy and community development In addition, participating in festivals and culinary events to introduce products helps create images, increase awareness among a wider audience, and connect with other F&B businesses

By implementing these strategies, F&B companies in Vietnam can not only grow their own businesses but also contribute to the overall success and vibrancy of the Vietnamese F&B industry

III CONCLUSION

In conclusion, the food and beverage industry faced unprecedented challenges during the COVID-19 pandemic, with widespread shutdowns and restrictions significantly impacting businesses However, the industry has also shown resilience and adaptability, with many businesses pivoting to new models such as delivery and takeout to survive As the industry looks towards recovery, it will be important for businesses to continue embracing digital innovation, prioritizing food safety and hygiene, and staying agile in response to changing consumer preferences While the road ahead may still be uncertain, the F&B industry has the potential to bounce back and thrive once again