Read this in The Manila Times digital edition.
WHILE the Philippines' Food and Beverage sector is steeped in tradition, its recovery is being fueled by innovation in technology across several different segments.The Covid-19 pandemic has had a profound impact on the Philippines' food service industry, forcing many businesses to close or significantly reduce their operations. The industry has been hard hit by quarantine restrictions, supply chain disruptions and reduced consumer demand.However, the food service industry in the Philippines is gradually bouncing back, showing improved sales in the last quarter of 2022. Based on the trends seen in the past few months, the country's foodservice sales are expected to increase by 12 percent year on year this year to a three-year high of $9.3 billion. In fact, the Department of Trade and Industry (DTI) reported that business registrations hit a 10-year-high in 2022, with restaurants and mobile food services activities coming in as the second-highest number of new business registrations last year.But despite the clear signs of recovery, the food service industry isn't out of the woods just yet. The same study conducted by the USDA-FAS office in Manila cited that the country's foodservice sales is still far below pre-pandemic levels. Given that the industry is one of the pillars of the economy, contributing 32 percent of GDP, a lot of sectors are coming out to support business owners engaged in food service.One example in the public sector is the filing of the "Restaurant Industry Revival Act of 2022" by Sen. Loren Legarda under Senate Bill 499. Legarda said the purpose of this bill is to strengthen the restaurant industry and provide a much-needed boost to the economy.In the private sector, tech-based solutions are being developed to help solve the pain points of food business, such as logistics, marketing, cost-control and operations. As the industry recovers, technology solutions are playing an increasingly important role in helping the industry bounce back.
Tech in the food service industry One of the most significant technological solutions that have helped the food service industry during the pandemic is online ordering and delivery platforms. With many consumers still wary of dining in at restaurants, online ordering and delivery platforms have allowed businesses to continue serving customers while complying with quarantine restrictions. Revenue from online food delivery in Southeast Asia is expected to grow annually at a rate of 17.54 percent from 2023 to 2027. While growth has slowed in the past year due to the easing of restrictions and the return of dine-in services, a study from Momentum Works shows that Food Delivery Gross Merchandise Value (GMV) is still four times more than what it was pre-pandemic.In addition to online ordering and delivery, contactless payment systems have also become more prevalent in the food service industry. Contactless payment methods such as mobile payments, QR codes and NFC technology allow customers to pay for their orders without physically handing over cash or credit cards, reducing the risk of transmitting Covid. This technology also benefits businesses by reducing the need for cash handling and providing a more streamlined payment process.Restaurant management systems are another technological solution that has helped the food service industry during the pandemic. With many businesses forced to reduce their staff or change their operating hours, restaurant management software has helped businesses manage their operations more efficiently. Features like inventory tracking, order management and data analytics have allowed businesses to optimize their operations, reduce waste and maintain a high level of service.Finally, digital marketing tools have also become more important for the food service industry during the pandemic. With more consumers shopping and dining online, businesses have had to adapt their marketing strategies to reach customers where they are. Digital marketing tools like social media, email marketing and search engine optimization have allowed businesses to reach more customers and drive more traffic to their online ordering and delivery platforms.
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