Importance of Food Technology for the Hospitality Industry by Dr. Himanshu Talwar

In the post-pandemic phase, where industries have had a difficult time generating revenue, the hotel industry has particularly struggled because of restrictions on travel. However, technology has been one significant factor that has provided those working in this sector with the right kinds of opportunities to reinvent themselves.

F&B Sector

The hospitality sector has been the fastest-expanding sector globally, and the food and beverage (F&B) sector continues to be the glue that holds the business together. The estimated size of the industry is around 3% of the GDP of India, which in business terms translates to 2/3 of the Indian retail market. With a projected market value in 2024 expected to reach USD 1.264 million, this sector has seen tremendous growth in the last few years. It has been estimated that the sector has grown at a CAGR of almost 14% from 2020 to 2024. Now, in order to understand the reason behind exponential growth, one must understand and evaluate the role of technology in the sector.

Open and adaptive to the tech revolution

Investments in new innovative technologies, as a way to deal with post-pandemic issues, have helped the F&B sector grow significantly, which has greatly contributed to the recovery of India’s hospitality industry. QR code-based e-menus, online billing and payment methods, integrated marketing, and customer relationship management (CRM) have been important tools in bringing about a change in the hospitality sphere. Furthermore, in order to sustain profitability over the long term and maintain a reputable client base, the hospitality sector understood the value of and how crucial it was to adopt and employ innovative technologies. And all such important decisions taken well in time have delivered exceptional results for the industry. Restaurants partnering with technology companies to improve the productivity and efficiency of their operations is a day-to-day thing to be seen and noticed. Henceforth, we are experiencing a revolution; for instance, the HoReCa sector is implementing newer innovations like contactless dining, contactless payments, and voice-controlled operations.

Kitchens and Internet

Another important factor is the rising popularity of cloud kitchens, online food delivery, and meal plans that emphasise health and wellbeing, which are contributing to the tremendous growth that India's foodtech sector is expected to experience over the next several years. Such steps, fueled by cutting-edge technologies like IoT and big data as well as the popularity of fast-service restaurants and chains, are transforming the sector and making it ready for the decades to come. With social and digital media gaining prominence, cultivating a brand identity that promotes an experience beyond food and beverages has become an important marketing strategy. Food tech startups like Rebel Foods, Box8, Fresh Menu, Daalchini, etc. have all helped accelerate revenue by encouraging people to invest in new food experiences.

Government Support

In an agreement to register a significant number of street vendors with Swiggy and Zomato, the Prime Minister's Street Vendors Self-Trust Fund and the Ministry of Urban Development shook hands with the food-tech giants. This initiative is a great opportunity to help the neighbourhood street sellers boost their sales, strengthening the foundation of the food-tech sector. And the introduction of the Open Network for Digital Commerce (ONDC) is another such unique initiative that will open doors for local street vendors to supply food and beverages to consumers without compromising on the quality of the item. Indeed, the role of organisations and departments such as Consumer Affairs, FSSAI, etc. is praiseworthy.

Outcome

To conclude, the sector is seeking opportunities to discuss and dwell upon issues such as acquisition costs, investments, and opportunities available to the company, which need to be addressed by some of the best tech experts in the world. Moreover, a platform must be created that can provide insight into the world’s newest and best assets in order to help businesses reach new heights, pushing them further in the global market. Surviving the pandemic has been a challenging task for most businesses; hence, issues like increasing the efficiency of F&B operations and boosting profit potential with the help of technology, as well as future-proofing of assets available currently, must be thoroughly studied and discussed for the betterment of the sector, the creation of more employment, and above all, keeping the good health of the people intact.