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

"The pandemic forced the restaurant industry to evolve – or disappear. It wasn’t just about survival; it was about reinvention. Adaptability became non-negotiable as takeout, delivery, and digital ordering shifted from secondary revenue streams to essential lifelines."

As we mark the fifth anniversary, MRM magazine surveyed restaurant insiders about the pandemic’s lasting impact on their businesses and the industry. For the first part of this series, click here. For the third part, click here. 

The past five years have reinforced the critical intersection of digital and hospitality in the restaurant industry. When the pandemic shifted consumer behavior overnight, off-premise became mission-critical, and at Olo, we were grateful to support restaurants as they navigated unprecedented challenges.

The industry’s resilience has been inspiring, and as we look ahead, the lesson is clear: a strong digital foundation is key to thriving in an ever-changing landscape.

The industry’s resilience has been inspiring, and as we look ahead, the lesson is clear: a strong digital foundation is key to thriving in an ever-changing landscape. Digital not only powers seamless experiences but also unlocks guest data that can elevate hospitality across all touchpoints, both digital and in-person.

– Noah Glass, Founder & CEO of Olo 

The pandemic was a transformative period for the restaurant industry, leading to significant changes in how both restaurants and consumers operate. One of the most impactful changes – and the stickiest – is contactless payment.

While the pandemic forced consumers to leverage contactless payment, such as tap-to-pay, out of pure health and safety concerns, it’s quickly become the normal course of business for restaurants aiming to streamline operations and maximize convenience.

According to Mastercard Contactless Consumer Polling, more than half of Americans are now using some form of contactless payment, and several sources state that adoption rate is accelerating amongst younger consumers. At Ansa, we’re at the forefront of this dramatic shift to contactless payments, providing restaurants with a leading white-labeled digital wallet solution to simplify POS-agnostic contactless payments and meet the next generation of guests where they are.  

– Sophia Goldberg, Founder and CEO, Ansa

The big lesson I learned is that I've had to continue to adapt my pricing, because people are still watching their spending. That's why we instituted lower-priced lunch specials and made other adjustments. The customer's needs always come first, even though my prices continue to rise.

The pandemic also made me realize I have to give to my community any way that I can, because we all depend on one another.

The pandemic also made me realize I have to give to my community any way that I can, because we all depend on one another. During the shutdown I made more than 10,000 meals to give away. Now that need is less, so I'm finding other ways to help my neighbors, who have been so good to me all these years. That's never going to change.

– Ilson Goncalves, Chef/Owner, Samba Montclair

Two ways the pandemic changed the restaurant industry are around employees and technology.

So many jobs were lost in the hospitality industry due to closures during the pandemic. Restaurant employees had to pivot and consider looking at other industries for employment, so when restaurants opened back up, some of those employees didn’t return to the restaurant industry. That led to an employee shortage, especially for high-quality and experienced management positions.

Labor shortages necessitate a strategic business shift to focus on holistic employee satisfaction and well-being, including the expansion of employee benefits.

Labor shortages necessitate a strategic business shift to focus on holistic employee satisfaction and well-being, including the expansion of employee benefits. What used to be a basic employee benefit plan for only full-time workers has since changed to personalized benefits such as daycare assistance and mental health programs for both full-and part-time employees. This gives everyone working at the restaurant the ability to have some form of medical care.

Technology continues to transform restaurant operations. Self-ordering kiosks, QR codes, mobile apps and loyalty reward cards have created more personalized experiences, which increase the likelihood customers will return. People appreciate contactless service and it has become the new norm to order differently than at the front counter of a restaurant with an employee at a cash register.

People appreciate the chance to place their own order without the hassle of miscommunication, hard-to-hear drive-through speakers or human error. Technology has become a solution in staffing as well. A restaurant currently understaffed can utilize tools to make the ordering and transaction process run smoothly and efficiently with a lower number of employees each shift. 

– Kim Gore, National Practice Leader of HUB International’s Hospitality Specialty Practice.

The pandemic forced the restaurant industry to evolve – or disappear. It wasn’t just about survival; it was about reinvention. Adaptability became non-negotiable as takeout, delivery, and digital ordering shifted from secondary revenue streams to essential lifelines. Supply chain disruptions and labor shortages required operators to rethink everything – leaner menus, smarter kitchens, and more efficient operations became the new standard.

The workforce also experienced a major reset. Staffing challenges exposed deep flaws in industry norms, forcing a long-overdue reckoning. Better wages, benefits, and workplace culture are no longer optional – they’re critical to retention. Hospitality is no longer seen as just a job; it’s a profession that demands investment in people.

Technology has redefined service models, but great hospitality remains irreplaceable.

At the same time, guest expectations have shifted. Dining is no longer centered around convenience; it’s about experience, connection, and authenticity. Consumers are looking for more than meals to consume. They seek brands they believe in. Restaurants that tell a compelling story, offer meaningful engagement, and create purpose-driven experiences earn lasting loyalty.

Technology has redefined service models, but great hospitality remains irreplaceable. The restaurants that thrive today are those that balance innovation with human connection. Looking ahead, the industry’s future is clear: be adaptable, invest in people, and never take guests for granted. The world changed, and so did restaurants. But at their core, they will always be about community, culture, and comfort.

– Joe Haubenhofer, Plaid Penguin founder 

The Power of Team Service

A strong team culture enhances employee experience and performance. Investing in teamwork, internal training, and career development—such as structured in-house wine education—creates a sense of belonging and shared growth. 

The Double-Edged Sword of Social Media 

Social media has reshaped how restaurants connect with guests, offering instant access to specials, menu highlights, and community events. While powerful, it also demands a thoughtful strategy to maintain brand reputation and engagement. 

– Stephanie Jaeger, President of Les Dames d'Escoffier International

Nearly five years after the pandemic began, the restaurant industry looks entirely different. At ZealFood, we’ve adapted to a changing landscape where technology, evolving business models, and heightened expectations for employee well-being have reshaped how we operate. We've learned that attracting and retaining great talent means going beyond competitive pay—it’s about offering real opportunities for growth.

Providing benefits like career development and on-the-job training is critical, especially as we continue our mission of serving thoughtful food that supports healthier, more sustainable living. By leveraging programs like Escoffier Global’s Work & Learn and offering pathways such as registered apprenticeships, we’re investing in our team’s futures and building a culture where everyone can thrive in an industry we love. 

– Wayde Jester, Owner ZealFood

The restaurant industry has learned many lessons since the pandemic, with adaptability being one of the most critical. Whether it's adjusting to shifting customer demands, offering multiple ordering channels, or managing disruptions in supply chains and staffing, technology has become more important than ever. Leveraging the right tech stack remains essential to operators' peace-of-mind and ability to pivot effectively.

Leveraging the right tech stack remains essential to operators' peace-of-mind and ability to pivot effectively.

With a growing number of technology providers entering the market in recent years, restaurant operators have also become more discerning as they manage already tight budgets. Cloud-based solutions that integrate with both new and existing hardware have become an increasingly attractive option.

At TRAY, we're seeing more operators turn to flexible systems that offer the adaptability they need, enabling them to stay nimble while avoiding the costly overhauls that often come with new tech investments.

– Peter Kellis, CEO of TRAY

Since the pandemic, it has been complicated managing through government issues, supply chain issues, manufacturing shortages of restaurant equipment and, of course, hardest of all the loss of great staff and managers who were forced to leave the hospitality industry. 

COVID has also forced the industry to rethink how we treat our entire team.

The cost of labor is still the single biggest impact stemming from the pandemic. Labor costs and minimum wage have skyrocketed in the past five years. In California, for example, there is no longer a tipped minimum for servers, and minimum wage has jumped 33 percent from $11 per hour to $16.50. In addition, the state carved out a special 45 percent increase to $20 per hour for fast-food employees. This has driven up all wages because a cook being paid $16.50 in a full-service restaurant will jump to a fast-food operation for the $3.50 per hour difference. 

COVID has also forced the industry to rethink how we treat our entire team. Most restaurants are offering more flexible time for managers as well as shorter hours. Hourly staff is getting more vacation time as well as schedules that fit their lifestyle. While many companies still don’t offer health insurance, I have a number of clients offering health care through online medical services, such as. These are changes that were long overdue, and COVID drove us in that direction.

– Izzy Kharasch, President and Founder of Hospitality Works, Inc.

The pandemic acted as a catalyst for accelerating the restaurant industry’s digital transformation, with solutions that were once nice-to-haves instantly becoming critical components of a restaurant’s ability to operate. In the five years since, challenges like labor shortages, higher operating costs driven by inflation, and increasingly discerning consumers have reinforced the necessity of the shift towards digital time and time again.

The pandemic acted as a catalyst for accelerating the restaurant industry’s digital transformation.

As a leader in ordering and payment solutions and the pioneer of pay-at-the-table with nearly 1B guests engaged across the U.S., Ziosk is helping restaurants navigate this ever-evolving landscape. Whether that’s easing the burden on thinly staffed teams to prevent burnout and improve retention, or arming brands with differentiators that improve the guest experience and keep value-minded customers coming back for more, we are proud to stand by the restaurant industry through one of its most challenging periods.

As we look ahead, we are focused on delivering innovative solutions that not only address challenges we foresee, but propel this industry to new heights.

 – Rhonda Levene, CEO of Ziosk  

Five years after the pandemic turned the restaurant industry upside down, one undeniable truth remains: adversity breeds resilience, and the industry has emerged stronger, smarter, and more adaptable than ever. While the immediate impact of COVID-19 was devastating, the silver lining is that it forced operators, leaders, and HR professionals to rethink how they work, lead, and grow.

The pandemic was a shared hardship, but it was also a collective masterclass in resilience.

The biggest shift? Efficiency and strategic outsourcing. Many restaurant groups realized they don’t have to do everything in-house—outsourcing HR, payroll, marketing, accounting, and more has helped them streamline operations, cut costs, and focus on what matters most: their people and their profits. At the same time, the shift to remote work proved that teams can be just as productive (if not more) from anywhere, improving efficiency and responsiveness across the board.

Beyond logistics, the biggest transformation has been in leadership. When faced with unprecedented challenges, restaurant leaders were forced to strengthen their soft skills—becoming more empathetic, adaptable, and solutions-driven. They learned to navigate uncertainty, build stronger teams, and lead with clarity. Today, these skills aren’t just ‘nice to have’—they’re essential for long-term success.

The pandemic was a shared hardship, but it was also a collective masterclass in resilience. The restaurant industry didn’t just survive—it evolved. And that evolution is fueling a more innovative, efficient, and people-first future.

– Carrie Luxem, CEO of Restaurant HR Group

Five years post-pandemic, one thing is clear across many industries, especially restaurants: adaptability isn’t optional, it’s essential. The businesses that have weathered challenges and thrived are the ones that moved quickly, embracing change as a constant.

From the way food is packaged to out-of-the-box service, every single touchpoint matters.

What was once considered a potential fad, such as delivery and carryout, has cemented itself as a core part of the dining experience. Hospitality matters more than ever and has evolved beyond the four walls of a restaurant. From the way food is packaged to out-of-the-box service, every single touchpoint matters. The true lessons, now and always, are to stay nimble, meet guests where they are and never underestimate the power of a great experience, whether it’s across the counter or at their front door.

– Gregg Majewski, Founder and CEO of Craveworthy Brands

At Wing Snob, we’ve learned that agility is the key to survival. The pandemic accelerated digital adoption, and those who embraced technology—not just for efficiency, but to enhance the guest experience—came out ahead. Investing in first-party ordering, streamlined kitchen operations, and strategic brand partnerships has allowed us to maintain consistency while scaling. More than ever, convenience and quality have to go hand in hand.

Building loyalty isn’t just about promotions; it’s about delivering an experience that people want to return to.

Another major lesson is the power of brand identity and community connection. With rising costs and increased competition, simply serving great food isn’t enough—you need to create a brand that resonates. Consumers are drawn to authenticity, and we’ve focused on maintaining a bold, fun identity that keeps customers engaged both online and in-store. Building loyalty isn’t just about promotions; it’s about delivering an experience that people want to return to. The restaurants that will thrive in the next five years are those that can balance innovation with the fundamentals: great food, great service, and a clear brand voice.

– Jack Mashini, Co Founder of Wing Snob

According to the U.S. Department of Labor, the leisure and hospitality sector is set to add nearly 800,000 new jobs between 2023 and 2033—about 1 in 8 of all new jobs during this period. The bulk of these roles will come from the food services, including positions like restaurant cooks and fast-food workers. This growth highlights the sector’s resilience and vital role in the U.S. economy.

However, keeping up with demand hinges on the industry’s ability to attract and retain talent—an ongoing challenge given the notoriously demanding work conditions and hours. One of the easiest ways to reduce hiring friction is by streamlining the application and interview process. By embracing digital-first and flexible hiring solutions, restaurant owners and managers can improve candidate experience while filling roles faster.

By embracing digital-first and flexible hiring solutions, restaurant owners and managers can improve candidate experience while filling roles faster.

Leading brands like Cracker Barrel are already using on-demand interviews and AI-driven assessments to cut down on administrative tasks for recruiters. By automating the front end of the process, recruiters can focus instead on building meaningful connections with candidates. As Marci Sigmund, VP of Talent Acquisition, explains, the right hiring technology doesn’t just benefit the restaurant, it helps uncover great candidates who might otherwise go unnoticed in a traditional process.

Ways to integrate technology across your hiring journey:

• Texting candidates: Gen Z prefers texting, and meeting them where they are is crucial. Instead of playing phone and email tag, implement text-to-apply QR codes or text codes in job ads. Use a centralized dashboard for 1:1 or mass text campaigns to quickly re-engage past employees, confirm interview details, and connect with new hires in seconds.

• Smarter skills matching: Candidates don’t always know the exact role they’re looking for. AI-powered chatbots can match candidates to jobs based on their skills rather than just job titles. For example, a candidate searching for “waiter” might not see a “server” job posting, but a conversational chatbot can recognize the overlap and present it as an option—expanding the candidate pool and improving job placement.

• On-demand interviews: Many hourly job seekers prefer interviewing outside of traditional business hours. Video interviews that can be completed anytime, anywhere remove scheduling barriers, giving both candidates and recruiters greater flexibility while accelerating hiring decisions.

• Today’s job seekers expect a digital-first hiring experience that feels as seamless as any consumer interaction. The most competitive companies are using technology to automate the process—allowing recruiters to spend their time where it matters most: engaging with top talent.

– Sibyl McCarley, Chief People Officer at HireVue

One issue we noticed during and since COVID is the amount of restaurant management teams and owners looking for ways to keep communication working efficiently between staff members. During COVID staff had to keep their distance from one another while still communicating properly to serve the clientele. This change in the way restaurants had to work made managers realize they needed easy to use and reliable ways for staff members to speak to one another.

By implementing communication devices, restaurants were able to serve the customers without any delays due to miscommunication, especially between front and back of house. Many restaurants started using two-way radio systems with earpieces so staff could communicate. This has continued because it became sort of the new normal within restaurants and overtime has shown a boost in communication amongst team members which in turn has led to better service overall. 

– Stewart McClintic, Co-Owner of HQ98.com, a two-way radio and accessory dealer

At Fogo de Chão, we’ve remained steadfast in our commitment to authenticity, discovery, and providing an exceptional guest experience despite all of the challenges and unknowns that the pandemic presented. When the pandemic hit, we focused on feeding both our team and our communities, doing our best to be sure no one was left hungry. We quickly pivoted to off-premise dining, expanding access to our nutrient-dense offerings while maintaining the quality and hospitality that define Fogo.

The pandemic has pushed the restaurant industry to adopt adaptability and resilience, lessons further highlighted by unexpected challenges like natural disasters.

Today, as we continue our steady growth, we’ve learned that agility, a relentless focus on our guests, and an unwavering dedication to our purpose are what drive long-term success in this ever-evolving industry.

– Barry McGowan, Chief Executive Officer of Fogo de Chão

The pandemic has pushed the restaurant industry to adopt adaptability and resilience, lessons further highlighted by unexpected challenges like natural disasters. For instance, our establishment was significantly impacted by Hurricane Ida, forcing us to close for five months to rebuild without flood insurance or government aid. This experience emphasized the critical importance of disaster readiness and financial planning.

Moving forward, we anticipate that restaurants will need to invest more in sustainable practices and infrastructure enhancements to withstand both economic and environmental disruptions. The key takeaway is that resilience, in both operations and finances, is essential for long-term success in an unpredictable world.

–  Berekti Mengistu, owner/operator of Mesob Ethiopian Restaurant

For the next part, click here.