THUONG MAI UNIVERSITY

FACULTY OF HOSPITALITY AND TOURISM

-------------------------------

DISCUSSTION

TOPIC: AN ANALYSIS OF THE F&B INDUSTRY

DURING AND AFTER COVID 19 PADAMIC

Teacher : Dam Thi Hong Nhung

Subject : Professional English 1
Class : ENTI1011
Group :6
 GROUP DISCUSSION
Presentation assessment: List of students

Students
NAME Position Task Mark
code

Pham Xuan Lam 21D110117 Member 4. Solutions

3. How F&B industry

Nguyen Phuong Linh 21D110010 Leader
recover after COVID 19?

Nguyen Thi Linh 21D110119 Member Powerpoint

Word + Introduction +
To Khanh Linh 21D110276 Member
Conclusion
1. What is food and
Phan Van Loc 21D110239 Member
beverage industry?
2. How F&B industry
Tran Quang Minh 21D110123 Member was affected by
COVID 19?
 Table of Contents

I. INTRODUCTION ........................................................................................ 1
II. BODY ........................................................................................................... 2
1. WHAT IS FOOD AND BEVERAGE INDUSTRY? ............................ 2
2. HOW F&B INDUSTRY WAS AFFECTED BY COVID 19? ............. 2
3. HOW F&B INDUSTRY RECOVER AFTER COVID 19? ..................3
4. SOLUTIONS .......................................................................................... 4
III. CONCLUSION .......................................................................................... 7
I. INTRODUCTION
The COVID-19 pandemic has had a profound impact on the food and beverage
(F&B) industry worldwide. With lockdown measures, restrictions on dine-in services,
and changing consumer behavior, many businesses in the F&B sector have been
forced to adapt quickly to survive.
In this analysis, we will explore the challenges that the F&B industry faced
during the pandemic, including decreased foot traffic, supply chain disruptions, and
increased costs due to safety measures. We will also examine the strategies that
businesses have implemented to stay afloat, such as offering delivery and takeout
services, investing in online platforms, and creating innovative menu options.
Furthermore, we will discuss the long-term effects of the pandemic on the F&B
industry and how businesses are positioning themselves for recovery. This includes
changes in consumer preferences, shifts in dining trends, and the potential for
continued reliance on digital technologies.
By examining the impact of COVID-19 on the F&B industry, we can gain
insights into the resilience and adaptability of businesses in this sector, as well as the
opportunities and challenges that lie ahead.

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II. BODY
1. WHAT IS FOOD AND BEVERAGE INDUSTRY?
The food and beverage industry encompasses businesses involved in the
production, processing, distribution, and sale of food and drinks to consumers. This
sector is incredibly diverse and includes a wide range of businesses, from large
multinational corporations to small, local producers and retailers.
The food and beverage industry is essential for providing consumers with a
wide variety of food and drink options while also contributing significantly to the
global economy. It is a dynamic and ever-evolving sector that is influenced by factors
such as consumer preferences, technological advancements, sustainability concerns,
and regulatory changes.
What is COVID 19 pandemic? The COVID-19 pandemic refers to the global
outbreak of a novel coronavirus known as SARS-CoV-2, which emerged in late 2019
in Wuhan, China. The virus causes a respiratory illness known as COVID-19
(Coronavirus Disease 2019). The World Health Organization (WHO) declared
COVID-19 a Public Health Emergency of International Concern on January 30, 2020,
and later characterized it as a pandemic on March 11, 2020.
The virus quickly spread to other countries and continents, leading to
widespread transmission and significant public health, social, and economic impacts
worldwide. The COVID-19 pandemic has resulted in millions of confirmed cases and
deaths globally, overwhelming healthcare systems in some regions and causing
disruptions to daily life on an unprecedented scale.
Overall, the COVID-19 pandemic has had far-reaching consequences for
individuals, communities, and societies worldwide, highlighting the importance of
global cooperation, scientific research, and public health preparedness in addressing
emerging infectious diseases.

2. HOW F&B INDUSTRY WAS AFFECTED BY COVID 19?

Revenue decreased seriously: Customers are the biggest source of revenue for
businesses. In the context of social distancing due to the pandemic, stores, restaurants,
and bars are extremely empty, causing total industry revenue to decline seriously.
Many bookings from the beginning of the year to June were canceled, causing
significant losses for service businesses

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 Countless restaurants had to close and transfer: Due to the severe decline in
customer numbers, businesses still have to pay fixed costs such as premises, staff, raw
materials, etc., so the cost pressure is huge, so businesses have to closing or worse,
transferring the store. TOKYO Deli chain stores announced the closure of nearly half
of their stores in Hanoi, TOKYO Deli's competitors also closed half of their
establishments in Hanoi, SoYa Garden closed 40 out of 50 establishments due to a loss
of 170 million VND one day. For Golden Gate brands, the Gogi House chain
temporarily stopped operating 5 stores in Hanoi, similarly, the Kichi-Kichi brand also
announced the closure of 7 restaurants.
Many employees are unemployed because restaurants and hotels cut staff to
reduce costs: The number of customers has decreased sharply compared to usual due
to social distancing, but all costs to maintain the store still have to be paid such as raw
materials, machinery, equipment, and staff wages every day. Many restaurants, hotels,
and cafes have had to give employees unpaid leave or reduce working hours and
receive basic salary... to overcome the dire economic situation during this time. This
leads to many people having no income, greatly affecting their lives.
The epidemic makes importing and exporting raw materials extremely
difficult: Due to trade closure policies, import and export is extremely difficult, this
directly affects restaurants, bars, etc. due to the need to ensure the quality of
ingredients and preservation of ingredients. It is also extremely difficult when the
number of customers decreases so they cannot consume, especially the ingredients
used during the day.

3. HOW F&B INDUSTRY RECOVER AFTER COVID 19?

According to Mordor Intelligence, the F&B industry in Vietnam would expand
at 8.65% annually in 2021-2026. The compound annual growth rate from 2021 to 2025
is projected at 4.98%. Experts anticipated that the market size will reach 678 million
USD, with the predicted number of consumers being 17.1 million by 2025.
After experiencing two years of the pandemic, the F&B market has undergone
many fluctuations. After the period of social distancing, the demand for this industry
has shown a strong recovery. By 2023, the market value was expected to increase by
18% compared to 2022, reaching 720 trillion VND. After the recovery, the F&B

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market will continue to develop at a stable pace and is expected to reach a value of up
to 938.3 trillion VND by 2026.
The pandemic Covid-19 has substantially changed the landscape of F&B
towards digital transformation. Thus, the application of technology to the F&B has
helped this market in Vietnam back on track after two years of difficulties due to the
pandemic. With the support of technology, the recovery time for production and
business activities of F&B enterprises is also forecasted positively. 47% of enterprises
are estimated to recover in six months, 33% of enterprises from 7-12 months, and 13%
after more than 12 months.
Some well-known F&B companies namely Starbucks, the Coffee House, Yen
Sushi, among others, have set up their own online store to adapt to the Covid-19
situation and increase the customers’ experience. Further, F&B companies also
cooperate with ride-hiding firms such as Baemin, Grab and Shopee Food to maintain
their operation.

4. SOLUTIONS
a. What should the government do to develop the F&B industry?
The Vietnamese F&B industry has shown resilience throughout the pandemic,
but there's room for significant growth. Here's how the government can help:
Financial support: The government could provide financial assistance
packages such as tax exemptions, low-interest loans, or direct financial support to help
F&B businesses overcome financial difficulties and expand. Financial assistance helps
F&B businesses recover from the financial setbacks caused by the pandemic. It
enables them to invest in necessary upgrades, expand operations, and innovate, thus
stimulating growth and ensuring their sustainability and create new products and
services.
Infrastructure investment: The government could invest in infrastructure such
as transportation networks, storage facilities, and food processing plants. Improving
this infrastructure would enhance the efficiency of the F&B supply chain, reducing
costs associated with transportation, storage, and processing. Improved infrastructure
also attracts investors and fosters economic development in the sector.
Promotion of food tourism: The government could promote culinary tourism
by organizing promotional events, exhibitions, or supporting culinary tourism

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packages. This would increase income from tourism and create new business
opportunities for local F&B businesses, which would not only benefit local businesses
but also enhance the country's image as a culinary destination.
Technology adoption: F&B businesses could be encouraged to adopt new
technologies to optimize production processes and improve service delivery. This
includes implementing online ordering systems, delivery services, and automation in
production processes. Embracing technology streamlines operations, improves
efficiency, enhances the customer experience, and also adapts to changing consumer
preferences and market demands more effectively.
By implementing these measures, the Vietnamese government can empower the
F&B industry to not only recover but thrive in the post-pandemic world.
b. What should F&B company do to grow the F&B industry?
In the wake of the pandemic, F&B companies in Vietnam have a great
opportunity to contribute to the industry's growth. To foster their growth, F&B
companies can take several strategic:
Innovate and diversify products: Businesses should innovate their products to
meet changing consumer preferences and requirements, providing nutritious and fresh
options that satisfy consumers' growing health. Also, use eco-friendly packaging,
source ingredients responsibly, and highlight these efforts to attract environmentally
conscious customers. Product innovation helps businesses attract customer attention,
create uniqueness for the business, and adapt to changes in market preferences and
needs.
Enhance customer experience: Customer experience is an important part of
building relationships with customers so providing excellent service and creating
impressive experiences help businesses build a loyal customer base and increase
business development opportunities. Businesses need to prioritize hygiene and safety,
providing personalized service by thoughtfully training staff and responding to
individual customer needs, thereby creating a welcoming atmosphere, cleanliness, and
pleasant music to create a positive dining experience and deliver memorable dining
experiences that promote repeat visits and positive recommendations from consumers.
Collaborate and build community: Build partnerships with local suppliers and
farmers to purchase fresh, high-quality ingredients. Supporting local suppliers not only

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ensures fresh products but also contributes to the local economy and community
development. In addition, participating in festivals and culinary events to introduce
products helps create images, increase awareness among a wider audience, and
connect with other F&B businesses.
By implementing these strategies, F&B companies in Vietnam can not only
grow their own businesses but also contribute to the overall success and vibrancy of
the Vietnamese F&B industry.

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III. CONCLUSION
In conclusion, the food and beverage industry faced unprecedented challenges
during the COVID-19 pandemic, with widespread shutdowns and restrictions
significantly impacting businesses. However, the industry has also shown resilience
and adaptability, with many businesses pivoting to new models such as delivery and
takeout to survive. As the industry looks towards recovery, it will be important for
businesses to continue embracing digital innovation, prioritizing food safety and
hygiene, and staying agile in response to changing consumer preferences. While the
road ahead may still be uncertain, the F&B industry has the potential to bounce back
and thrive once again.