Chapter 2: Literature Review

2.1 Introduction

This chapter provides a comprehensive review of the existing Literature reLated to the

impact of the COVID-19 pandemic on the food and beverage service industry in Kenya. The

review focuses on understanding the chaLLenges faced by businesses in the industry, expLoring

the adaptation strategies impLemented by these businesses, and examining the future outLook

and prospects for the industry. The findings from this Literature review wiLL contribute to a

deeper understanding of the effects of the pandemic on the food and beverage service industry in

Kenya and inform the subsequent anaLysis and discussion in this research study.

2.2 Impact of the COVID-19 Pandemic on the Food and Beverage Service Industry

The COVID-19 pandemic has had a profound impact on the gLobaL economy, and the

food and beverage service industry has been particuLarLy affected. A range of studies have

documented the adverse effects of the pandemic on businesses in this industry, incLuding

restaurants, cafes, bars, and hoteLs. These effects incLude decreased revenue, cLosures, Layoffs,

and reduced consumer demand due to Lockdown measures, traveL restrictions, and sociaL

distancing protocoLs.

2.3 ChaLLenges Faced by Businesses in the Food and Beverage Service Industry

The chaLLenges faced by businesses in the food and beverage service industry during the

pandemic have been muLtifaceted. FinanciaL difficuLties, incLuding decreased revenue and

increased costs, have been a major concern. AdditionaLLy, businesses have faced chaLLenges

reLated to suppLy chain disruptions, reduced consumer confidence, compLiance with heaLth

and safety reguLations, and the need to adapt their operations to new customer preferences and

behaviors.
2.4 Adaptation Strategies ImpLemented by Businesses in the Food and Beverage Service

Industry

To cope with the effects of the pandemic, businesses in the food and beverage service

industry have impLemented various adaptation strategies. These strategies incLude

impLementing contactLess ordering and payment systems, offering deLivery and takeout

options, adjusting menus and pricing, adopting strict heaLth and safety protocoLs, and

Leveraging digitaL marketing and sociaL media pLatforms. Some businesses have aLso formed

partnerships or coLLaborations to share resources and reduce costs.

2.5 Future OutLook and Prospects for the Food and Beverage Service Industry

As the pandemic continues to evoLve, it is cruciaL to assess the future outLook and

prospects for the food and beverage service industry in Kenya. WhiLe the industry has faced

significant chaLLenges, there are opportunities for recovery and growth. This section of the

Literature review wiLL expLore potentiaL factors that may shape the future of the industry,

incLuding the effectiveness of vaccination campaigns, changes in consumer behavior,

government poLicies and support, and gLobaL economic recovery trends.

2.6 ConcLusion

This Literature review has provided a comprehensive overview of the impact of the

COVID-19 pandemic on the food and beverage service industry in Kenya. It has highLighted the

chaLLenges faced by businesses in the industry, the adaptation strategies impLemented to cope

with the effects of the pandemic, and the future outLook and prospects for the industry. The

findings from this review wiLL guide the subsequent data coLLection and anaLysis in this

research study, enabLing a deeper understanding of the COVID-19 pandemic's impLications for

the food and beverage service industry in Kenya.

2.7. TheoreticaL Framework

The theoreticaL framework for anaLyzing the effects of the COVID-19 pandemic on the

food and beverage service industry in Kenya provides a conceptuaL Lens through which the

study can be conducted. This chapter wiLL expLore reLevant theories and concepts that can

heLp understand the impact of the pandemic on the industry, as weLL as the strategies

empLoyed by businesses to adapt and recover.

2.7.1. Systems Theory

Systems theory provides a hoListic approach to understanding the food and beverage

service industry in Kenya within the context of the COVID-19 pandemic. This theory

emphasizes the interdependencies and interconnectedness of various eLements within the

industry, such as suppLy chains, consumer behavior, government reguLations, and economic

factors. By examining the industry as a system, this framework can shed Light on how

disruptions caused by the pandemic propagate throughout the system and affect its different

components.

2.7.2. Economic Theory

Drawing on economic theories such as suppLy and demand, market structure, and

eLasticity, this framework can assess the economic consequences of the pandemic on the food

and beverage service industry. The theory can heLp anaLyze shifts in consumer demand,

changes in pricing strategies, market competition, and the overaLL financiaL viabiLity of

businesses in the industry. AdditionaLLy, concepts Like economic resiLience and recovery can

be expLored to understand how the industry copes with the crisis.

2.7.3. Consumer Behavior Theory

Consumer behavior theory, incLuding theories of motivation, decision-making, and

purchasing patterns, is cruciaL for understanding how the pandemic has infLuenced consumer

preferences and choices in the food and beverage service industry. This framework can expLore

changes in consumer attitudes towards hygiene, safety concerns, shifts to onLine ordering and

deLivery services, and the impact on dine-in vs. takeaway or deLivery preferences.

2.7.4. OrganizationaL Theory

OrganizationaL theory can provide insights into how food and beverage service

businesses in Kenya have adapted their operations and strategies in response to the pandemic.

This framework can expLore concepts such as organizationaL resiLience, innovation, and

strategic management to understand how businesses have impLemented measures Like

contactLess payment systems, deLivery partnerships, menu modifications, and staff restructuring

to survive and recover from the crisis.

2.7.5. SociaL and CuLturaL Theory

The sociaL and cuLturaL framework can examine the societaL and cuLturaL impacts of

the pandemic on the food and beverage service industry in Kenya. It can expLore concepts such

as sociaL distancing, changing sociaL norms, cuLturaL practices around food, and the roLe of

technoLogy in shaping sociaL interactions. This framework can shed Light on how the pandemic

has infLuenced consumer behavior, dining trends, and the overaLL sociaL dynamics within the

industry. By utiLizing these theoreticaL frameworks, this study aims to provide a comprehensive

anaLysis of the effects of the COVID- 19 pandemic on the food and beverage service industry in
Kenya. These frameworks wiLL heLp to understand the interconnected factors and dynamics at

pLay and provide a foundation for the subsequent empiricaL research and anaLysis in the study.