DIGITALIZATION OF BUSINESS DIGITALIZATION OF BUSINESS

PROCESSES IN ADAPTATION OF PROCESSES IN ADAPTATION OF

CATERING INDUSTRY TO NEW CATERING INDUSTRY TO NEW
REALITIES REALITIES
(COVID-19 PANDEMIC) (COVID-19 PANDEMIC)
DIGITALIZATION OF BUSINESS PROCESSES IN
ADAPTATION OF
CATERING INDUSTRY TO NEW REALITIES
(COVID-19 PANDEMIC)

Project/Final Exam:
DISCUSSION PAPER |
Review of Emerging Technologies

Submitted by;

Jezalyn Sol. Malacas

BSIS-3A

December 16, 2022

Abstract
During the crisis caused by the
coronavirus in Russia and
throughout the world, restrictions on
business and social activities are make it
necessary to adapt the business processes
of catering companies to the new situation.  examine the trends of digital transformation
The aim of this paper is to study the trends
of business process digital transformation.
Due to the need to adjust those effects of
the pandemic and to determine their viability
in terms of continued operation after the
coronavirus crisis, public catering
businesses in southern Russia were
studied. The authors were used content
analysis of scientific sources from
databases Scopus and Web of Science that
discussed the growth of public catering
businesses during the coronavirus crisis to
carry out their study. It was discovered
through the analysis of local and global
experience that the group of solutions
addressing the digitalization of business
processes was. A decrease in perceived
health risks was the focus of this movement,
which was reflected in both the services that
they offered and the way they were offered.
In the Russian food service industry, the
study identified the following key trends in
the digitalization of business processes. The
characteristics of these trends are provided
considering their long-term viability. There
are some common issues with using digital
tools and technologies in businesses. Since
modern consumers favor a variety of
technological innovations due to their speed
and relative ease of use, as well as the
increased availability of, the authors
concluded that the digitalization of business
processes in Russia will continue after a
return to traditional forms of service.
Reduced health risks are made possible by
mobile technologies that offer search,
payment, and other features.
Introduction
The focused of the article is to
of business processes of public catering
companies due to the need to adapt to the
factors caused by the pandemic, and to
analyze their viability in terms of possibility
of using the experience acquired after the
end of the pandemic.
The use of technology and digital
tools by businesses in their work has
become an obvious solution to the issues
associated with adapting to the new reality.
Accordingly, businesses that engage in
direct offline consumer contact, like catering
companies, have been particularly impacted
by the need to digitalized business
processes. In order to resolve their pressing
issues of regional strategic planning, it is
vital to study the development of public
catering in the context of the new reality.
On the other hand, the issue of
maintaining customer relationships within a
self-isolation regime was linked to anti-crisis
scenarios for the growth of public catering
businesses. As a result of the pandemic's
challenges, numerous changes have also
turned out to be opportunities for future
growth after the coronavirus crisis has
passed.
The authors used content analysis of
scientific sources from the Scopus and Web
of Science databases to carry out their
study. Their sources covering those cases
of how public catering businesses
developed during the coronavirus crisis. In
the selected publications, the topic of the
transformation of catering businesses in
nations and regions with a high level of this
industry's development was discussed.
Based on the article, during the coronavirus
crisis, digitalization served as the foundation
for the transformation and modernization of
almost all sectors of the economy, as well
as the emergence and development of new
business models and new formats of
interaction tailored to the new realities.
Digitalization trends of business
processes in public catering
According to the article more than
25% of restaurants closed within almost a
month, and 25% were unable to resume
operations at their pre-pandemic levels in
the 2021. However, around 20% of cafes
and restaurants in Russia were closed,
according to the Federal Service for State
Statistics, and the turnover of the catering
sector fell by 21%. In addition, experts point
out that the crisis caused about 40% of
catering businesses to change ownership
and some business owners invited partners
and made them co-owners, while others
sold their companies to pay off debts.
Servitization of business processes with
a variety of delivery options and
satisfaction of new types of needs.
Therefore, by implementing an
online ordering system in catering using web
crawler tools has become a way out for
many catering businesses. The food
delivery market in Russia has experienced
great growth during the pandemic, which
resulting in the turnover of the food
technology industry increasing to 12.4 billion
rubles in 2020, which is 41% more than in
2019.. According to Mail.ru Group report
the delivery club service was expanded its
geographic reach from 24 to 200 cities in the
Russian Federation. As matter as fact
similar trends are observed around the
world, for example, in the USA, during the
suspension, the four leaders of the ready-
made food delivery market in Door Dash,
UberEATS, Grub hub, Postmates are
increased their profits from $ 2.5 billion in
the year 2019 to $ 5.5 billion in the year
2020 based on Gorodilov.
On the online platform, consumers
can choose and order from a wide range of
cafes, restaurants, and their products. The
unit again sends the consumer's request to
a specific company and selects a courier to
deliver the order to the customer. Therefore,
the main advantage for catering companies
of using food aggregators is that they solve
logistical problems and provide an additional
distribution channel. At the same time, it is
possible to expand the customer base and
create additional marketing platforms. As a
result, many restaurants have turned to
online food delivery platforms to maintain
brand loyalty and provide a competitive
advantage. That is why many catering
businesses are developing their own
delivery services in this regard.
Development of contactless payment
Methods
The main factors limiting the use of
contactless payment systems are the low
level of digital literacy of certain population
groups such elderly people, rural residents,
etc. which need to develop appropriate
support infrastructure in the region.
However, according to (Maksimova et al.,
2021) the restaurant industry has the largest
share of contactless payments, accounting
for 77.1% of all contactless money transfers.
Use of a variety of software products
dealing with customer service.
In Russia, online booking of tables in
the pre-pandemic period was available
using the food aggregator “Afisha.
Restaurants.” In fact, the pandemic
contributed to the development of this
technology, for example, in 2020 Sberbank
launched the SberFood booking application
with the Marketing Cloud loyalty program.
The SberFood service allows you to track
the activity of guests, attract new customers
through various marketing campaigns bonus
programs, geo targeting, pre-orders, paid
coupons, and loyalty cards, and so on.
Moreover, an area of business
process automation in the restaurant
industry related to customer service is the
use of electronic tipping services. By
switching to account pay, the number of
"dips" by waiters was reduced, which
reduced the motivation of employees to
improve customer service. The electronic
notification service is available in the
Sberbank software. Other electronic
notification services are also available. The
main advantage of their services is that they
make paying with QR codes very convenient
for both parties from both customers and
waiter.
Additionally, is a technology that
minimized face-to-face interactions was the
virtual menu. Due to the fact, amidst of
pandemic a lot of eateries and coffee shops
created their own applications with hosted
menus or provided them on portable devices
with an antibacterial cover. This innovation
was justified by the fact that the
conventional menu is handled by numerous
people, posing a health risk despite
stringent cleaning procedures. This issue is
completely resolved when using virtual
menus.
Use of order visualization systems
(Kitchen Display Systems – KDS
technology).
Based on the published article it is
rarely used in Russia, KDS technology has
a lot of potential and has been successfully
used in other countries. Their kitchen
display system is a digital whiteboard, in
short, a digital system that combines the hall
and the kitchen into one automated system
to provide effective and accelerated work
between the two. Meaning KDS technology
gives businesses substantial competitive
advantages by cutting down on the time
needed to move orders from the lobby to the
kitchen, organizing food preparation and
takeout in accordance with customer
preferences, lowering the risk of customers
having to wait a long time for food, lowering
the risk of orders losing in whole or in part,
and forth.
Automation of inventory management
Processes
The results of this analysis are
important to understand that each type of
conversion allows you to create an own set
of parameters that can give to their business
a long-term competitive advantage. Clearly,
each transformation trend offers certain
competitive advantages as well as certain
disadvantages. Therefore, there are two
main tools in the delivery organization the
working with a food aggregator and the
organizing own delivery system. The use of
digital products in the catering industry
typically necessitates sizable financial
outlays, but in addition to pricy technologies
for stock management or visualizing orders,
there are also tools that are both cost e
effective and of the highest caliber.
Additionally, there are instances were using
sophisticated automation products and other
times when using highly specialized
technologies will be appropriate. In the
catering industry, the general trend in the
digitalization of business models is to go
beyond understanding the traditional
restaurant business, expand the range of
services offered, while maintaining a high
degree of customer focus and feedback.
Today, the company's positioning in
the informational sphere is also very
important. Social media and the online
environment have emerged as vital
channels for luring customers. As a result of
the decline in direct consumer interactions,
friendly content is receiving a lot of attention.
One example is showing customers the
restaurants or an internal kitchen because it
makes their social media pages more
appealing and fosters brand loyalty.
The following are typical issues that
arise when using digital tools and
technologies in enterprise business models.
First off, these are resource limitations
brought on by the fact that several solutions
require sizable software investments and
facility updates to be implemented.
Furthermore, the use of digital technologies
assumes that the staff members possess a
certain set of skills. However, a lot of small-
and medium-sized food service employees
lack basic computer skills. Second, is that
digital tools and technologies requires a
certain level of client digital literacy, whereas
some consumer groups are simply unaware
of the existence of certain technologies or
their capabilities. Thirdly, the formation of
the value of homegrown entrepreneurs is
not based on cooperative interactions to
maintain sustainable development based on
obtaining environmental and economic
effects. As a result of the pandemic, many
catering businesses followed the adage
every man for himself putting more of an
emphasis on internal environment changes
than on strategically altering the food
ecosystem.
Conclusion
It concluded that from an analysis of
the potential applications of technologies
and digital tools in the operations of catering
businesses that contemporary consumers
are drawn to a range of technological
advancements because of their speed and
relative simplicity use. The increased
accessibility of search engines, payment
options, and other features could lower
health risks. Therefore, even after the shift
back to traditional forms of service, the
digitization of business processes will
probably continue. The following issues can
be distinguished as factors and conditions
that generally affect whether digital business
transformations are viable. These include
the requirement for regional information
infrastructure development, population
digital literacy development, and business
content contributions to food aggregator
websites. Based on the regional authorities’
institutional decisions have a big impact on
how likely it is that these problems will be
solved. Along with this, the most important
task is increasing the digital proficiency of
public catering industry employees in line
with the emergence of new tasks and roles
connected with the administration of support
for virtual interactions.

Cited; Mitrofanova, I.V., Chernova, O.A., &

Batmanova, V.V. (2022). Digitalization of
business processes in adaptation of catering
industry to new realities: Covid-19
pandemic. Serbian Journal of Management.