Pandemic Reflections: What Lessons Has the Restaurant Industry Learned?, Part Three

"As awful as it was, the pandemic pushed restaurants to completely rethink their operations in order to survive, and some of the changes they made during the pandemic have continued to be beneficial to those restaurants and industry at large."

As we mark the fifth anniversary, MRM magazine surveyed restaurant insiders about the pandemic’s lasting impact on their businesses and the industry.  To read the first article in this series, click here. To read the second part, click here. 

From a legal perspective,

• Insurance: the pandemic highlighted the limitations of insurance policies. Even though local and state orders prohibiting or severely restricting restaurants’ ability to serve customers and generate and revenue, standard business liability policies did not provide coverage, and many policies had a pandemic exclusion. Several high-profile restaurant groups brought litigation against insurance companies for their coverage position, but were ultimately unsuccessful. Many restaurant owners had believed they would be covered in the event of something like the pandemic, and found themselves without a safety net.

Overall, the pandemic highlighted the vulnerabilities, margin issues, and lack of safety net to restaurants in a way the industry is still recovering from.

• Landlord/Tenant Disputes: in my practice, I have seen a huge increase in lease disputes. Restaurant owners negotiated payment plans with their landlords, many of which had prolonged forgiveness dates, but were often not able to pay back rent. 

• Workforce: COVID fundamentally changed the labor market. Restaurants had difficulty hiring and retaining staff, which led to more interest in automating processes. 

• Delivery/Takeout: COVID created a shift from in-person dining to takeout and delivery options, increasing reliance on third party delivery services, and on attractive takeout options. Restaurants that did not have this infrastructure had to build it quickly, particularly with takeout of alcohol orders.

Overall, the pandemic highlighted the vulnerabilities, margin issues, and lack of safety net to restaurants in a way the industry is still recovering from.

– Pooja S. Nair, Partner, Ervin Cohen & Jessup LLP

The biggest lesson I’ve taken away from the past five years is that consistency and brand identity matter more than ever. While the pandemic forced the restaurant industry to adapt rapidly, it also reinforced the value of staying true to who you are while making strategic improvements. At Taco John’s, we’ve doubled down on what makes us unique – bold flavors, quality ingredients, and the value-driven experience our guests love -while integrating operational efficiencies that enhance convenience.

The pandemic made speed, accuracy, and seamless ordering non-negotiable.

 One of the biggest shifts we’ve seen is the evolution of the drive-thru and mobile ordering experiences. The pandemic made speed, accuracy, and seamless ordering non-negotiable. We’ve reimagined our drive-thru model, introduced new kitchen technology to improve throughput, and strengthened our loyalty program to keep customers engaged.

But beyond technology, the key takeaway is that guests want familiarity and reliability, a brand they trust to deliver the same great experience and quality, whether they’re dining in, ordering ahead, utilizing third-party delivery, or grabbing their favorite meal on the go.

– Heather Neary, CEO of Taco John’s

The COVID-19 pandemic dramatically accelerated the restaurant industry's digital transformation. Consumer behavior shifted rapidly towards online ordering and contactless payments, making these technologies essential for survival. This surge in off-premise orders forced restaurants to optimize their operational workflows, from kitchen management and packaging to delivery logistics. The need for efficient data analysis became paramount, enabling businesses to identify bottlenecks, improve order flow, and adapt to the fluctuating demands of the pandemic era.

The need for efficient data analysis became paramount, enabling businesses to identify bottlenecks, improve order flow, and adapt to the fluctuating demands of the pandemic era.

For restaurant operators, this digital shift necessitated the adoption of integrated technologies. Point-of-sale systems needed seamless integration with online ordering platforms and third-party delivery services, while customer relationship management tools facilitated personalized marketing and loyalty programs.

Furthermore, digital tools for inventory and labor management became crucial for navigating supply chain disruptions and staffing challenges. Ultimately, the pandemic underscored the importance of technological agility and data-driven decision-making in the restaurant industry.

– Dimitra O'Rourke, Broken Yolk Café’s VP of Tech and Franchise Support

We’ve seen lasting change in the five years since the pandemic, still feeling the impact of the behaviors and actions of that time. Most widely felt is the labor epidemic. The staffing shortage continues and has been a challenge when trying to meet the increased surge of demand that arrived once things reopened. Restaurants have had to rethink hiring, wages, and benefits to attract and retain talent.

On a positive note, people developed a deeper appreciation for social connection and the experience of dining out, making for more guests joining us in our restaurants. And outdoor dining, once more of an afterthought or a novelty, has become a more permanent and intentional part of restaurant design. These changes have challenged operators to adapt, but they’ve also reinforced the resilience and innovation that define the hospitality industry.

–  Steve Palmer, The Indigo Road Hospitality Group's founder and chief vision officer

Over the past five years, the restaurant industry has demonstrated remarkable resilience, adapting to immense challenges with innovation and agility. Core indicators, like employees working and hours worked, have been bouncing back to pre-pandemic levels. Wages have risen roughly 13 percent since early 2023, leveling out at $13.62 as of December 2024, according to Homebase payroll data.

As a result of the pandemic, restaurants have found new ways to support their workforce by automating and simplifying tasks like scheduling and payroll, and embracing technology like digital ordering and contactless payments, allowing them to emerge stronger and more adaptable than ever.

– Rushi Patel is the CRO & Co-Founder of Homebase

In January of 2020, my company launched. We had been in development for several months and it was finally go-time. We were a sourcing and hiring platform for restaurants. In Nashville, TN staffing shortages in hospitality were at an all time high as a result of the meteoric growth of the city and its tourism. We’re officially the bachelorette capital of the country.

Restaurants were posting ads on craigslist three to five times a day for the same position just so that it would remain at the top. Five times a day! Stories from some hospitality groups recount waiting outside the bail bondsman’s office to pick up a dishwasher or two. Hiring for restaurants was a challenge to say the least. And these challenges were not limited to just Nashville. From San Francisco to Dallas to New York, restaurant staffers were jumping from one concept to another for as little as $0.25 more an hour. Very little brand loyalty or company allegiance existed; it was without a doubt a sellers market and whoever could pay the most per hour was winning.

The pandemic taught restaurants that perfection is the enemy of progress.

 All of a sudden, in October of 2020 we doubled our revenue. Restaurants needed to pay for hiring solutions. Hooray! We’re back in business. What unfolded over the next six months was the stark realization that the employees whom restaurant operators thought were dying to get back to work were no longer there. They had left the industry in pursuit of their dreams elsewhere and left a wake of disbelief and shock among hiring managers. This was now a race to place any person with a pulse into a role, hoping that you could train them up quickly while you capitalized on the pent up demand from diners to enjoy their favorite restaurants again. For hiring platforms like foh&boh, the name of the game was volume, volume, volume. If your platform couldn’t produce hundreds of applications per role per week, then you were cancelled. 

This trend continued through 2022 during which time corporate, specifically offices of Employee Training, jumped into high gear designing better onboarding workflows, job training, flexible schedules and personal development, all as an answer to combat the frenzy of turnover and increase retention. In short, restaurants had to adapt in order to meet the new work-life balance requirements the workforce had come to demand. 

From a vendor perspective, watching how quickly restaurants mobilized in 2020 to roll out efficient online ordering, deploy to-go experiences where none had existed previously and introduce contactless payments revealed a hidden agility many operators didn’t know they possessed. When survival was at stake, corporate executives discovered that decisions once left languishing on desks for weeks could be made in days or even hours. Gone was the habit of kicking a new idea down the road to the next quarter. The pandemic taught restaurants that perfection is the enemy of progress. The excuse of “we’ve always done it this way” – long used to resist  avoiding embracing technology- vanished for those that wanted to survive. Innovate or die was the new mantra.

Running a successful restaurant isn’t measured solely by what’s on the menu anymore.

So once the immediate pandemic pressures eased, revamping the employee side of operations as a survival tactic against labor shortages and high turnover became the next crisis. Corporate leadership approached this issue with the same urgency. Their decision making muscles, now well- conditioned, embraced these changes as the new standard rather than an exception.

Today, the lifecycle of the hourly workforce from jobseeker to employee at your restaurant differs in all phases from that of 2020. Acquisition sources have shifted dramatically–mobile-first platforms like Jobget now proactively meet jobseekers where they are at the right time with the right opportunity, replacing the passive job board model. Instant interviews using AI technology like Paradox replace phone tag between applicants and hiring managers, reducing time-to-hire from weeks to days. 

Once onboarded, Immersive training videos show new hires the precise expectations of a day-on-the-job rather than long form manuals. Feedback loops have evolved from annual reviews to real-time systems strengthening team cohesion. Restaurants have woven their brand values throughout the employee experience, creating authentic communities that extend from the BOH to the customer. Running a successful restaurant isn’t measured solely by what’s on the menu anymore. Rather, how thoroughly the team embodies the culture set at the top ultimately determines whether you’re turning tables all night or staring at empty seats.

– Mary Pillow Thompson, founder of foh&boh

Five years after the pandemic, Tom's Watch Bar has gained valuable perspective on what drives people to gather. Beyond our innovative viewing technology and diverse sports programming, we've found that guests primarily seek meaningful shared experiences. The months of isolation heightened everyone's appreciation for watching games together—whether it's high-fiving strangers after a game-winning play or debating calls with newfound friends at the next table.

While technology remains important, it serves a deeper purpose: facilitating connections rather than replacing them.

Our most successful innovations aren't just the 360-degree screens or comprehensive sports coverage, but the environments we've created where diverse fans connect authentically. While technology remains important, it serves a deeper purpose: facilitating connections rather than replacing them. As sports viewership continues fragmenting across platforms, physical spaces that unite fans have become increasingly valuable—not just for our business, but for communities rediscovering the simple pleasure of experiencing moments together.

– Brooks Schaden, co-CEO of Tom’s Watch Bar

The pandemic certainly put food safety on the map as consumers prioritized their personal health and wellness above all. Five years later, it’s still a massive issue that isn’t going away, further demonstrated by the recent influx in high-profile foodborne illness outbreaks from major enterprise brands making headlines across the industry. In fact, more than 1,400 people became ill from contaminated food in 2024, doubling hospitalization rates compared to 2023, according to the U.S. PIRG Education Fund.

While restaurants responded well to the pandemic by placing greater emphasis on their health and safety protocols, the industry can do a lot more to protect public health. Through real-time monitoring of hand hygiene, temperature and expiration management, PathSpot is designed to help restaurants detect traces of contamination before reaching the consumer, ultimately reducing the preventable spread of foodborne disease.

– Christine Schindler, PathSpot CoFounder & CEO

We may be beyond the days of takeout-only and outdoor ‘bubbles,’ but the pandemic left an indelible mark on the restaurant industry, especially when it comes to digital transformation. The touchless ordering technologies and other pandemic-era adaptations that kept businesses running helped to lay the groundwork for the increasingly personalized and tech-forward experiences diners are having today.

Perhaps most importantly, the pandemic kickstarted a renewed focus on the employee experience; the same tools that have made ordering safer and easier for customers have also reduced the burden on restaurant employees, so they can focus more on engaging with customers. Restaurants are also harnessing the latest advancements in AI to give workers the schedule flexibility that will keep them engaged and satisfied, leading to a better dining experience.

–  Michael Spataro, Chief Customer Officer at Legion

As a technology partner powering over 30,000 restaurant sites globally with our broad portfolio, NCR Voyix worked alongside our restaurant partners through their most transformative lesson: success requires unifying physical and digital experiences, not treating them as separate channels. To do so, quick service and table service restaurants had to prioritize multi-channel ordering and payment capabilities.

Today, the industry better understands that guests expect seamless experiences whether dining in-store, ordering online, or using mobile devices—and crucially, these channels must work together as one unified system to deliver an exceptional guest experience that is expected.

Pre-pandemic, many restaurants viewed digital ordering as just an add-on service. When dining rooms closed, restaurants quickly had to adopt disparate solutions—from online ordering and contactless payments to integration with third-party delivery platforms like DoorDash, Uber Eats, and Grubhub. 

Today, the industry better understands that guests expect seamless experiences whether dining in-store, ordering online, or using mobile devices—and crucially, these channels must work together as one unified system to deliver an exceptional guest experience that is expected.

Through our POS and Commerce Platform, we've uniquely addressed these challenges with our solutions. The pandemic didn't just accelerate digital adoption—it changed how restaurants should invest in future-proofing solutions for operational agility. Those who learned to turn technological complexity into competitive advantage are now best positioned to adapt and grow, no matter what changes come next.

– Benny Tadele, Executive Vice President and President of Restaurants at NCR Voyix

Outdoor dining saved New York City by keeping the restaurants and bars open. However it came with a lot of problems. People were literally building houses in the road. These things were made out of cheap materials and so they began to rapidly decay after a couple years and become infested with rats. Some of them didn’t even have traffic safety barriers.

The new DiningOut NYC program addresses a variety of public health and safety concerns by regulating outdoor dining. Although these new rules make outdoor dining safer and cleaner, it does so at the expense of the space available to businesses to install and operate outdoor dining.. We engineered an alternate traffic barrier system that takes up less space than water barrier systems, meaning more space for seats.

– Ryan Taylor, Co-Founder, StreetSeats

When COVID hit, there was a huge spike in off-premises dining. In response to this trend, most restaurants pivoted their systems and processes to focus nearly 100 percent of their efforts on enhancing their off-premises dining options and strategy.

Restaurants sought to create smooth and convenient transactions while offering the same quality of food by leveraging different packing techniques to ensure it traveled well and the presentation was on point. For example, instead of boxing a Caesar salad tossed in dressing and topped with hot chicken, which would have made it soggy and wilted, the chicken was packed separately, and the dressing was put in a container on the side. Staffing changed during this time as well to cater to the off-premises customer experience.

After COVID, people were itching to get back out and craved in-person restaurant experiences. Today, we’ve reached a nice balance where half of our business wants the option of dining in and enjoying an experience, and half of our business wants the convenience and simplicity of ordering where they want and when they want, so they can enjoy the food at home or on the go.

Technology changed during this time as well. For example, during Covid many restaurants started using QR codes to share menus and other pertinent restaurant information and offers. While this was originally done to prevent the spread of germs, it is now seen as a sustainable way of cutting back on printing. Another trend that picked up during Covid and is still around today, is the rise in popularity of using social media to share promotions and unique ideas for food experiences and enjoyment. Many people were on their phones during the pandemic, because there wasn’t much else going on. Tapping into this engaged audience, restaurants saw an opportunity to get in front of new consumers and create interesting content that was shareable and fun. Today, this approach continues as we see content creators showcasing insta worthy dishes, creative restaurant menu hacks, and more.

– Austin Titus, president of Cannoli Kitchen Pizza 

As awful as it was, the pandemic pushed restaurants to completely rethink their operations in order to survive, and some of the changes they made during the pandemic have continued to be beneficial to those restaurants and industry at large.

Before 2020, most fine dining and elevated casual restaurants relied on traditional sit-down service inside the restaurant. When indoor or in-person dining paused, Tock customers quickly adapted by converting outdoor spaces into dining rooms, created meal kits that gave guests a chance to make the food from their favorite restaurants, and transformed their dining spaces into pickup locations for their takeout kits. These changes weren’t temporary shifts—they sparked significant innovations across the industry and in many ways transformed dining.

The operational challenges brought on by the pandemic, such as limited staffing and food inventory planning due to supply chain issues, made it clear that reliable reservations are essential.

Today, post-pandemic, our partners use Tock to offer both traditional reservations, and promote and sell these other guest-facing opportunities that were largely developed during the pandemic, from seasonal outdoor dining spaces to hybrid service models combining dine-in, retail, and events, like cocktail making classes, wine tastings, pop ups, and more. Many restaurants have added special programming like chef’s counters and tasting menus that turn quiet hours into profitable services, while others have introduced flexible booking options that let guests choose between standard reservations and prepaid dining experiences.

Another major shift has been how restaurants handle no-shows. Pre-pandemic, most restaurants, outside of fine dining, did not implement no-show tools like prepayments, deposits, or credit card holds. Now, restaurants across all categories recognize the importance of these tools in protecting their bottom line. The operational challenges brought on by the pandemic, such as limited staffing and food inventory planning due to supply chain issues, made it clear that reliable reservations are essential. By leveraging Tock’s suite of reservation and revenue management features, this can help restaurants with better guest commitment while maximizing their efficiency.

The industry’s resilience during the pandemic revealed new possibilities for serving guests and driving revenue. These adaptations have become permanent features of a more dynamic hospitality landscape.

– Matt Tucker, Head of Tock

Hiring Practices

One of the biggest issues post Covid is the willingness of restaurant owners to have the flexibility with scheduling requirements. During pre-Covid times, restaurant owners would have a minimum number of shifts for staff to work, basically three to four shifts a week in the front of house. The kitchen was a bit different and would work four to five shifts a week. Post-COVID there became a willingness to have more part time hires working up front. Many of these front of house staff members during this time also wanted to work less days or shifts. In doing so, the restaurant managers and operators were forced to hire additional workers to fill these gaps.

Being flexible is key for the future of restaurant stability. 

Staff must be available to serve clients and as staff members want to work less means you must hire more workers. So, restaurant operators are having to hire additional staff to fill these voids in lack of staff situations. This is due to market availability. Meaning restaurant management is having to hire more employees to do the same job as they did with less workers in the past during pre-COVID events. This is causing a change in the hiring process and making sure you hire the right people for the right positions within the restaurant. 

Alternative Food Delivery

The restaurant industry is always resilient and willing to change at a whim if anything affects it. During COVID people could not go out to eat. The family and date nights were gone. Many restaurants started shifting to delivery services to get the food out to their loyal customers. Short of fine dining you could find this through a variety of applications and even restaurant websites. The idea of sending food to the people through delivery, catering or carry-out services helped save many restaurants.

Adding these extra services provided revenue and cash flow to restaurants who were willing to accept the new normal of how people want to get their food during this time. As we have seen over the years post-COVID people are still looking for these opportunities to get their food from local restaurants delivered to their door. As a restaurant owner this is an opportunity to spread your brand and build new guest relationships. Being flexible is key for the future of restaurant stability. 

 – John Waters, Principal of Waters Business Consulting Group, LLC

-Richard Stark, Senior Business Consultant at Waters Business Consulting Group, LLC