The world is facing a very big problem all are locked in their own house in the last 2 months. We all are aware of the crises of COVID 19 the government is assure us to open all the essential services but at the ground level, the company faces a huge challenge to follow the current manufacturing practices to help them assurance consistent quality of food commodities.
The supply chain is a big factor or challenging to the supply of food and highly perishable item like the dairy product a smooth flow.
Effect of COVID 19 on the industry:
Food and beverage face very big challenges to provide raw material to the company the transport system is collapsing due to that the raw material is not reached to the proper place at the exact price. The manufacturing company faces a very big challenge to the time of output. And we all understand the closing of bar and restaurant, there is also trickle-down effect impacting on the business associated with these establishments.
The revenue decline in the company:
The revenue of the food and beverage company is declining by 10% to 20%. The hotel and its market performance have been much worse than previously in 2003.
Some of the leading brand stores are closed for example:
- Domino’s Pizza
- Burger King
- KFC Corp.
- Subway Restaurant.
The purchasing power of the client:
After the announcement of the lockdown consumer running to the store for the panic buying, the product scarcity is increased in the market. And after the continuation of the lockdown, the company start to cut their employee salary between 30% to 40% of consumers. The behavior of consumer spending changes they only purchase on basic such as food, household supplies, and personal care item, as well as medicine.
No impact on the processing of the food expects domestic poultry industry and export like tea, rice, meat, and seafood, etc. due to the demand contraction and fake propaganda of the poultry firm (egg, chicken) is highly impacted.
Online e-commerce company food and grocery platform are heavily impacted due to the unclear policy restriction and shortage of vehicles. E-commerce app should be encouraged to help the rapid development of delivery personal to avoid buying and restrict movement in the street.