Restaurant industry's response to Covid-19 - Lund University ...
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Restaurant industry’s
response to Covid-19
By Nikoleta Mircheva, Barbara
Plompen and Milan Wynants
Restaurant industry’s response to Covid-19
Nikoleta Mircheva, Barbara Plompen & Milan Wynants
Abstract
Purpose – The key objective of this research is to discuss different restaurant strategies that
emerged in Belgium, Bulgaria, Denmark and Sweden in response to the Covid-19 pandemic
and relate the respective restaurant activities to brand trust and reputation. Therefore, the
restaurant industry is analysed with respect to the pandemic and findings are put into context
by explaining the countries’ severity of lockdown. The current research contributes to literature
on the restaurant industry during the Covid-19 pandemic and encompasses important theoretical
and practical implications for restaurant strategies regarding customer trust and relationship.
Design/Methodology/Approach – Literature review on restaurant industry during Covid-19 in
connection with brand trust and reputation followed by case studies of four restaurants in
different countries to draw conclusions about undertaken strategies in reaction to the pandemic.
Findings – The analysed Covid-19 restaurant strategies distinguish themselves in level of
change and communication. Findings are depicted in a 2 by 2 model. Existing brand trust,
reputation and strong customer relationship prove to be of high value regarding the restaurants’
organizational performance while facing the challenges of the Covid-19 health crisis.
Research limitations/implication – Lack of literature, longitudinal studies and empirical data
due to the recency of the Covid-19 pandemic. Due to a small sample size the findings are not
statistically significant. Future research on restaurant strategies during and after the health crisis
focusing on brand perception have high potential to create valuable theoretical and managerial
implications.
Practical implications – Fostering brand trust and brand preference in the customer’s mind is
crucial in order to face unprecedented challenges such as the Covid-19 pandemic.
Originality/value – The current paper is the first research that focuses on comparing restaurant
strategies in four different European countries that emerged from the specific country’s severity
of lockdown and provides important general and contextual managerial recommendations.
Paper type - Research paper
Keywords: Strategic Brand Management, Restaurant Industry, Brand Trust, Brand Reputation,
Customer Relationship, CSR, Covid-19 Pandemic, International Dimensions
restaurant activities regarding brand
reputation and trust.
1. Introduction
How do restaurants adapt their business
strategies to the ongoing Covid-19 2.1 Covid-19 and restaurant industry
pandemic and how does this affect their The pandemic has a severe negative impact
brand? Through the analysis of four specific on the food serving industry (Ou, Wong, &
European restaurants located in Belgium, Huang, 2021, p. 1). Due to various
Bulgaria, Denmark and Sweden and the safeguard measures imposed by
development of two models, the restaurant governmental authorities against Covid-19
strategy model and the country lockdown such as safety protocols, stay-at-home
model, this paper aims to find a coherent orders, social distancing or lockdowns of
answer to the aforementioned question communities, restaurants all over the world
while taking into account the different have been experiencing a significant
situation each country finds itself in with decrease in volume of customers (Statista
regard to Covid-19. The interconnection 2020). Bartik et al. (2020, p. 14) state that
between the restaurants’ strategies, brand the chances for restaurants to survive the
trust and brand reputation is going to be health crisis radically decreases the longer
investigated as the restaurant sector is one the crisis lasts (e.g. 72% chance of survival
of the economy’s main sectors that is being after one month, 15% chance of survival
affected heavily by the ongoing pandemic. after six months). However, authorities
The analysis is based on a scientific started to slowly introduce easing of certain
approach by considering the restrictions and restrictions that, amongst others, also are
measures that are put into place by the local directed at the restaurant industry. In most
governments and how these affect the countries, operating restaurants have to
restaurants’ business strategies as well as integrate several safety measures and
customers’ assessment of branding protocols into their organisational models
concepts. and practices. For instance, they are only
allowed to accommodate a limited number
of guests while simultaneously following
2. Theoretical background
solid social distancing and hygiene rules
The availability of literature concerning (Gursoy & Chi, 2020, p. 527).
restaurants during the Covid-19 pandemic
Hu et al. (2020) investigate how
is still relatively scarce given the recency of
organisations in the hospitality industry can
the crisis. Furthermore, literature provides
facilitate employee compliance with said
only little theoretical insight on response
Covid-19 safety requirements. The authors
strategies of organisations to a global
argue that in the pursuit of strengthening
pandemic (Hu, Yan, Casey, & Wu, 2020, p.
employees’ commitment to safety it is
2). Gursoy & Chi (2020, p. 527-528)
important that management responds to
suggest that the Covid-19 crisis creates new
environmental threats that concern
research opportunities in hospitality
employees (e.g. the organization’s viability
marketing and management literature
and job security) and thus positions the
regarding the newly generated insights
organisation internally as a ‘safe haven’.
about the industry and how changed
This creates a basis for a cooperative
customer needs and values influence the
relationship between management and
industry’s operations. The following will
employees from which employee
provide an overview over already existing
compliance with the Covid-19 safety
research on the pandemic and its influence
measures can evolve. Deep compliance
on the restaurant industry focusing on
stems from health and risk awareness (e.g.
perceived risk of Covid-19), perceived
utility of the imposed safety measurements on the supply chains of many restaurants.
to protect customers’ health, behavioural Therefore, CSR was mainly directed at
adaptation of those measures and finally, farmers given their importance in the
integration of the safety measures into foodservice supply chain. Ou et al. (2021)
existing work routines. (Hu et al., 2020, p. suggest that restaurants investing in CSR
8-10) efforts to enhance the industry’s and
society’s situation during the uncertain
Creating safety compliance among
times of the Covid-19 pandemic will be able
employees is relevant for the current paper
to create competitive advantage and to stay
given that employees play a central role in
in business. (Ou et al., 2021, p. 7-8)
creating the customer’s perception of the
restaurant image and reputation (Erkmen & The insight that constantly being present in
Hancer, 2019, p. 1481). the customers’ minds (e.g. through CSR
efforts) helps restaurants to keep their
position in the market (Ou et al., 2021, p. 8)
2.2 Brand reputation, trust and restaurant can be linked to Erkmen & Hancer’s (2019)
strategies during Covid-19 finding that restaurant employees can
Ou et al. (2021) outline how restaurants contribute significantly to restaurant
could foster a positive image and reputation branding. More concisely, the more contact
during different phases of the Covid-19 and interaction there exists between
pandemic. Central to their research is CSR customer and employee (e.g. the more
as organizational crisis response from present in the guest’s mind), the higher the
restaurants to various stakeholders. opportunity that employees can be the
Therefore, they introduced a three-stage restaurant’s source of differentiation.
model depicting the periods incubation Hence, the authors emphasise the potential
(stage one), acceleration (stage two) and of internal branding to create a unique
peak (stage three) of the crisis. In the first customer experience and thus, an increased
stage, work performance within the brand image of the restaurant. (Erkmen &
restaurants declined because of the Hancer, 2019, p. 1481)
pandemic’s impact on the economy. Thus, Branding plays a crucial role for restaurants
corporate communication focusing on to stand apart from the fierce competition in
social initiatives was primarily addressed to the foodservice industry (Erkmen &
internal stakeholders (e.g. employees). In Hancer, 2019, p. 1469). Erkmen & Hancer
stage two, the severity of the pandemic has (2019) show that the brand image of
substantially increased. The pandemic not restaurants is significantly influenced by
only impacts organisations but also affects service quality and the experiences of other
society in general leading to a significant customers. The latter is considered to be a
decrease in volume of restaurant guests. tangible cue of the restaurant’s brand
According to Gursoy & Chi (2020, p. 527) personality and thus is able to increase
only around 25% of individuals have guests’ preference for the brand. Another
already eaten out in a restaurant while over factor that enhances brand preference is the
50% of individuals do not feel safe to dine congruence of brand personality and the
in a restaurant during this phase of the customer’s self-concept. Furthermore, it is
pandemic. Hence, recognising the people’s argued that brand image has a positive
needs and wants, CSR efforts were focused effect on brand trust. This especially holds
mainly on enhancing the local community’s true for fine dining restaurants (Erkmen &
lives and situations (e.g. donations of food Hancer, 2019, p. 1479-1480). These
and money to those in need). The economic findings are valuable indications to
stagnancy that characterises stage three formulate strategies in response to the
challenged the existence of several small pandemic. In other words, being aware of
businesses which also had a negative impact
the customer segment’s needs and possibly 3. Restaurant strategy model
changed values due to the Covid-19
situation, and implementing those values in Since the pandemic was a worldwide
business practices, could contribute to phenomenon it is of utmost importance to
higher brand preference and trust. research various examples in multiple
settings. Nevertheless, the paper will
Given the current lack of literature on constrain its research to the borders of
strategies restaurants formulated in Europe due to the additional factors which
response to the Covid-19 pandemic, the immensely affect the differences in habits,
next section introduces a two by two matrix culture, behaviour and crisis management
depicting four different strategies that approaches. The following section will
emerged due to the crisis respectively in concentrate on the responses of the four
Belgium, Bulgaria, Denmark and Sweden. chosen restaurants to the covid-19
Hereby, the country specific safety Covid- pandemic by discussing their branding,
19 measures are taken into account as they positioning, communication and reaction to
set the framework for possible strategy the crisis and a model will be developed to
formulations. The matrix is subject to an put the findings into a common platform.
underlying model that discusses how
restaurant strategies, brand trust and
reputation interconnect (see Figure 1). 3.1 Introduction to the four restaurants
Frantzén in Sweden
Frantzén is a three Michelin star restaurant
based on a philosophy of casual elegance in
the central parts of Stockholm. The
restaurant serves modern Nordic cuisine
with influences from Japan in three floors of
a townhouse. In 2010 Frantzén was
awarded with two Michelin stars and the
restaurant gained its third star in 2018. In
2019 the chef Björn Frantzén won the Best
Chef Top100 Award based on the chef’s
experience, talent and potential as well as
his personality. (Frantzén Group, 2020)
Figure 1
Frantzén is part of the Frantzén Group
which owns several award-winning
restaurants and bars in different Swedish
The interconnection between currently
cities, Hong Kong and Singapore.
undertaken restaurant activities regarding
Furthermore, the Frantzén Group promotes
brand trust, CSR as well as brand reputation
projects to support quality assurance in
and image reinforce the customers’
Sweden’s food industry. The Frantzén
perception of and closeness to the brand.
Group establishes high quality standards in
The unprecedented safety measures
terms of service and food and it also aspires
stemming from the pandemic and the virus
to integrate its values and identity to offer
itself impact existing perceptions of
its guests a unique dining experience in
individuals and societies. From this change
every of its restaurants. (Frantzén Group,
in perception, new values are created in the
2020) (see Appendices 8.1 for visual
customer’s mind which restaurants need to
representation)
consider in their future behaviour and
business practices. Fine dining restaurants strongly depend on
international guests (Abend, 2020) which
poses a potential risk for premium Hof van Cleve in Belgium
restaurants as many countries have Hof van Cleve is a high-end cuisine
introduced travel bans in response to the restaurant located in the small village of
Covid-19 pandemic. Kruishoutem, Belgium. Since 2005, the
The following briefly outlines Sweden’s restaurant has been awarded three stars in
covid-19 strategy to give an overview about the Michelin Guide and is even recognised
the general situation in Sweden and as the best restaurant in the world by
implications for restaurants. Sweden’s wbpstars which has led to the restaurant
strategy in response to covid-19 has the being considered Belgium’s most
overarching objective to protect people’s prestigious. The main aim of the restaurant
health and life as well as to ensure health is to give its customers a total experience.
care capacity by mitigating the spread of the Chef Peter Goossens and his staff combine
virus. At the same time, the Swedish high quality local products with a limited
Government emphasises the importance of amount of imported international
keeping in mind which effects the measures ingredients to add that special touch. He
against covid-19 might have on overall believes all five senses have to be
public health and society. The Swedish stimulated during a visit and therefore
Government invokes its people to take everything is put into practise to deliver an
individual responsibility and it is expected experience of the highest quality. Attention
that individuals act accordingly to protect to detail is very important both in the food
themselves and others. Hence, the Swedish as well as in the design of the restaurant
Corona strategy is mostly based on advice where a local artist is put on display every
and recommendations of the government year. (Hof van Cleve, 2020). (see
rather than restrictions and prohibitions. Appendices 8.2 for visual representation)
(Krisinformation, 2020) With regard to covid-19 in Belgium we can
Existing bans such as temporary travel detect certain important dates that affect the
restrictions into Sweden have an impact on operations within the restaurant industry.
the restaurant industry. However, the On 17 March 2020, the Belgian National
exempt of restaurants, cafés and pubs of the Security Council decided to close all non-
public gathering limit has given Swedish essential shops in an attempt to stop the
restaurants the opportunity to stay open rapid spread of the coronavirus (Belgium,
during the pandemic (Krisinformation, 2020). As a result, all restaurants were
2020). Nevertheless, premises serving food forced to shut down including Hof van
have to follow specific rules including Cleve. After a period of almost three
implementing measures to ensure the guests months restaurants were again allowed to be
are able to keep enough distance from each reopened on 8 June 2020 provided that they
other (at least one meter), only providing take into account certain measures imposed
table service and providing guests with by the government such as there are: a
means to take care of their hand hygiene. maximum of 10 people per table, 1.5 meter
(Government.se, 2020; Krisinformation, distance between restaurant staff and
2020) customers, obligatory use of a facemask
unless seated at a table, etc. A more in-depth
Accordingly, Frantzén has stayed open
analysis and discussion of the measures and
throughout the pandemic. The restaurant
restrictions will be done later in the paper.
did not change its strategy and the pandemic
(Vlaanderen, 2020; FOD Economie, 2020)
is not mentioned in the restaurant’s
communication.
Happy in Bulgaria The company marketed the change through
the slogan: “still delivering the happy
Happy is a daily restaurant chain that owns
experience”. The campaign was called “Eat
multiple restaurants in Bulgaria. Before the
at home” and included communications
pandemic, Happy reported a revenue of
such as “You can't come? Then eat at home”
$14.63 million, had 103 employees as well
and had its own hashtag on Facebook
as 26 subsidiaries and seven branches
#HappyВкъщи (Happy at home) (Forbes
(Dun&Bradstreet, 2019). Happy already
България, 2020). The manager of Happy
offered online delivery and also had a strong
Delivery, Ivelin Iliev, states that there has
established identity prior to the pandemic
been a 10% growth in delivery sales and
outbreak.
attributes these results to the trust of the
During the pandemic, the company did not customers (Forbes България, 2020).
change its business model even though the According to him, the main advantage of
measures introduced by the Bulgarian the company is that it offers food made only
government were severe and a lockdown inside Happy’s own premises and that this
was announced almost immediately after provides good conditions to fully manage
the first confirmed covid-19 cases which the whole process of preparing and
meant only grocery stores and delivery delivering the food (Forbes България,
services were allowed to be operational 2020). (see Appendices 8.3 for visual
(Coronavirus.bg, 2020). Happy maintained representation)
their usual brand promise and solely relied
on their delivery services while the
restaurants were forced to be closed. Noma in Denmark
When restaurants were again allowed to be Noma is a Danish two-star Michelin Guide
opened, the manager of Happy, Teodora restaurant located in Copenhagen and it is
Popova, came out with a statement considered one of the best restaurants in the
concerning the issue: world. It offers a new way of cuisine due to
“Every day, more than 50,000 people visit us its innovative genre of cooking. For four
and we are responsible for protecting them. We years it was named The World’s best
have introduced hygiene measures, in restaurant (2010, 2011, 2012, 2014) and it
compliance with the Ministry of Health and the has earned the Highest New Entry Award
European standards […]. We do our best to with its debut (UI - 50B - Restaurants -
provide maximum protection for customers GLOBAL, 2020).
[…]. For 25 years we have been practising a
responsible business culture, so we monitor the The fine dining restaurant offers three
situation hourly [...].” [11th of March 2020] menus per year based on the seasonal
(offnews.bg, 2020). ingredients and each menu includes twenty
courses (UI - 50B - Restaurants - GLOBAL,
The measures imposed by the government 2020). The restaurant also has made its own
include cleaning surfaces at all times, publications with The Noma Guide to
employees were to wear gloves and masks Fermentation which includes special
and the employees’ temperature was recipes and has become a New York Times
mearured (offnews.bg, 2020). Additional Best Seller (UI - 50B - Restaurants -
measures taken by the restaurant chain GLOBAL, 2020).
involved packaging of food and drinks in
hermetically closed plastic bags and During the pandemic Noma kept its doors
carrying out deliveries “Without personal open by changing its business model
contact” (Forbes България, 2020). The drastically and relying on its reputation and
delivery boxes are also being kept in heated established trust and relationships. The
spaces to reduce the risk of infection Danish authorities introduced a lockdown
(Forbes България, 2020). and limited restaurant activity because it
involved close interaction between service 3.2 Introduction of the restaurant
providers and customers (Politi.dk, 2020). strategy model
As to accommodate the measures Noma After briefly examining the four restaurants
Figure 2:
Restaurant
strategy model
changed its menu, moved its venue within their respective country environment
outdoors and reopened its doors as a it is evident that the restaurants experienced
“Burger bar”. differentiating levels of change and need of
adaptation. The pandemic had very specific
effects in each of the cases and this can be
The reputation of the restaurant served as a attributed to the approach each respective
guarantee for the burgers’ high quality. The country took to the crisis as well as the local
product itself was relatively simple but on mindset of the consumers. The idea that the
opening day Noma sold 1,300 burgers in covid-19 measures had an impact on the
only four hours. The previous business reaction of each restaurant will be further
model included fine-dining and a feeling of discussed in the country specific analysis
exclusivity but the new one was inclusive section of the paper.
and invited everyone on the streets (Insider,
In order to put the findings into an
2020).
expressible format a two by two matrix is
Previously a meal would cost around $500 developed, see Figure 2. On the horizontal
but the burgers served were sold for axis, the level of radical change that
between $19 and $23. Some of the occurred in restaurants’ operations is shown
customers were attracted to the “Burger and on the vertical axis the amount of action
bar” for the relatively lower prices while taken by each of them is illustrated.
others wanted to feel the new experience.
The customers were firm that they would • Horizontal axis: “No change” to
visit the bar again, although the feeling of “Radical change”
exclusivity was still present when Noma This includes how much the business
announced that the burger bar would close model, communication and actions of the
on the 21st of June (Insider, 2020). Noma’s respective restaurant changed. Relevant
changes were communicated online and considerations for the assessment of this
interviews were done with both employees axis were for instance if the restaurant
and customers. (see Appendices 8.4 for changed venues, started offering home
visual representation) delivery options or kept the same business
model but added something extra to express
safety.
• Vertical axis: Level of action more specifically, the Government
undertaken in communication Stringency Index (Our World in Data,
2020). This tool was developed by
This measure expresses the level of action
researchers at the Blavatnik School of
taken by the restaurants. Relevant questions
Government at the University of Oxford
Figure 3
Source: Our World
in Data, 2020
for the no action/action axis include, for (Our World in Data, 2020). The data from
instance, if the restaurant emphasised the research is translated into tables
communication differently or even available on the Our World in Data website
completely changed it, if restaurants were (Our World in Data, 2020).
able to attract more attention from
Following are the main criteria for country
customers, and if they had to instil comparison measured through the GSI
additional trust in their customers or if they which form the final coefficients displayed
could rely on their previously achieved in the graphs:
brand reputation.
• school closures;
• workplace closures;
4. Discussion
In this section, the measures taken during • cancellation of public events;
the pandemic will be discussed and data will • restrictions on public gatherings;
be presented explaining the differences in
severity of the lockdown and the impact on • closures of public transport;
the restaurant industry in order to put the • stay-at-home requirements;
four restaurant cases into context. After
which a new two by two matrix (e.g. • public information campaigns;
country lockdown model) will be presented • restrictions on internal movements;
that positions the four countries on a
dimensional platform. • international travel controls.
(Our World in Data, 2020)
For the purposes of this paper the Oxford
Coronavirus Government Response
Tracker (OxCGRT) will be utilised, and4.1 Severity of Covid-19 measures in In contrast, Bulgaria’s first case was
Belgium, Bulgaria, Denmark and identified between March 1st and 15th and
Sweden with a fast pace, between March 15th and
April 1st, the country subsequently
The comparison provides data from 21
proceeded from National
January 2020 to 10 October 2020. The chart
Recommendations to Localised lockdown
is dynamic and updated regularly and thus
and finally established a National lockdown
for the purposes of this paper only the
(BBC News, 2020). Bulgaria is the only
previously stated time period will be
country of the four to have used the
discussed. An additional resource are the
Localised lockdown strategy. According to
BBC News charts focussing on the global
the GSI, the country introduced strict and
crisis which define four possible strategies
swift measures but their implementation
for action such as there are localised
had high fluctuations after the initial period
recommendations, localised lockdown,
between March 11th and April 30th. The
national recommendations and finally,
growing public discomfort, which pushed
national lockdown (BBC News, 2020).
the government to indecisiveness, proved to
According to the GSI comparison, the four be the reason for the fluctuations in decision
countries have a varying approach to the making (Coronavirus.bg, 2020). As of
pandemic. They will be discussed October 10th, Bulgaria achieved a score of
separately to explain the progression of the 35.19 which is the lowest amongst the four
measures and the actions that have been countries - Denmark (50.93), Belgium
undertaken. See the graphical (45.37) and Sweden (37.04) (Our World in
representation of the comparison of the four Data, 2020).
countries in Figure 3.
Denmark had a more stable approach. The
In January 2020, Belgium introduced country had its first registered case a few
measures at a stable pace. The country days before the 1st of March but swiftly
reached the highest amount of measures introduced National recommendations
throughout the whole period with a score of followed by National lockdown measures
81.48 compared to Bulgaria (73.15), between March 15th and April 1st (BBC
Denmark (72.22) and Sweden (46.30) (Our News, 2020). The country was also most
World in Data, 2020). After the first three stable in its policy towards the regulations
months the government alleviated the during this first period of the pandemic. As
measures at an irregular pace until October of 10 October, Denmark has the strongest
10th. Hence, Belgium became the second measures with a score of 50.93. The
strictest country of the four with a score of lockdown began early and was at its peak in
43.52 (Our World in Data, 2020). March with a score of 77.22 after which the
According to the BBC News charts on the measures were alleviated at a moderate pace
global lockdown, Belgium only introduced reaching their current level (Our World in
two strategies - National Recommendations Data, 2020).
and National Lockdown (BBC News,
2020). The first case of COVID-19 was
identified between February 1st to 15th but The last country to introduce any kind of
the National recommendations only grew recommendations was Sweden. Around
into National lockdown measures between March 11th, the country scored 11.11 on the
March 1st to 15th with a sizable gap GSI. Until June 19th, Sweden achieved a
between them (BBC News, 2020). score of 46.30 after which the value fell
again at a very slow and steady pace (Our
World in Data, 2020). Even though the first
registered case of covid-19 in Sweden wasa few days before February 1st, the infection among workers and guests (Rzi-
measures were introduced almost a month vt.bg, 2020).
and a half later - between March 1st and
15th (BBC News, 2020). The only strategy
the country applied was National The Danish measures in the beginning of
recommendations (BBC News, 2020) since the crisis were swift. People could not
they chose to approach the global crisis in gather and many free trade professions were
an entirely different way compared to most mandatorily closed down (Politi.dk, 2020).
other European countries namely, a strategy Most of them included premises at which
of social responsibility where citizens were clients are offered services involving close
expected to follow the recommendations physical contact such as restaurants and
without additional government interference nightlife, retail shops, social activities and
(Folkhalsomyndigheten.se, 2020). private parties (Politi.dk, 2020). No more
than fifty people were allowed to gather in
one venue and because of the growing
4.2 Impact on the restaurant industry by infection rate among the young population
country restaurant work hours were reduced, all
guests were required to wear face masks
The Belgian National Security Council
closed all non-essential establishments on except for when they were already seated, a
maximum number of customers sitting
17 March 2020. Citizens were required to
together was put in place and citizens were
stay in their homes (Belgium.be, 2020). The
advised to use online applications to order.
then Prime Minister Sophie Wilmès
A voluntary contact data gathering
announced that on 8 June 2020 restaurants
measurement was introduced in case a
and bars were allowed to reopen, but a
customer was infected (Politi.dk, 2020).
distance of 1.5 meters had to be maintained
between tables. Bars were expected to close
at 1 AM, mass gatherings were not allowed Sweden only proposed recommendations,
and people were only allowed to meet up to which included providing information for
10 other people within a single week staff and customers, marking the
(Martuscelli, C. and Moens, B., 2020). On 8 appropriate distance between people on
October 2020, a decision was taken for bars floors, rearranging venues so that there is no
to be closed again for a monthly period, as clustering of people, washing hands often,
the Federal Health Minister, Frank avoiding gatherings and using alternative
Vandenbroucke described bars as “real means of transport
infection hotspots”, but restaurants were (Folkhalsomyndigheten.se, 2020). Personal
kept operational for now responsibility was taken into consideration
(Brusselstimes.com, 2020). in limiting the spread of infection
(Folkhalsomyndigheten.se, 2020). After
In the beginning of the pandemic, Bulgaria
July 1st, a new act was established for the
put in place a lockdown which allowed only
restaurant industry which is valid until 31
grocery shops to be opened as well as all
December 2020 and dictates that restaurants
kinds of home delivery services
are responsible for taking measures to
(Coronavirus.bg, 2020). Visits to bars,
prevent the spread of the virus
restaurants and other establishments were
(Riksdagsförvaltningen, 2020).
suspended with a state order
(Coronavirus.bg, 2020). Later on, the
government allowed the restaurant industry 4.3 Country lockdown model
to resume business activities with some
conditions: ensuring the safety of workers In this section, a two by two matrix will be
and restaurant guests and establishing developed according to the information
procedures under the presumption of an presented above which aims to express boththe level and severity of the lockdown service and needed only reassurance due to
measures (estimated by Normal or High) the lack of stability of action, high
Figure 4: Country
lockdown model
and the amount of fluctuation in the fluctuation of decision-making and the
decision-making process (estimated by Low severity of the measures implemented in the
or High), see Figure 4. country (see Appendices 8.3 for visual
representation). Belgium introduced severe
• Horizontal axis: Severity of
measures and did not allow for much
lockdown measures
movement outside of these constraints and
This measurement includes how many thus the reaction of Hof van Cleve is
regulations were implemented according to rational and compelling (see Appendices
the Government Stringency Index as of 10 8.2 for visual representation).
October and what impact they had on the
different actors in the specific setting.
• Vertical axis: Stability of action 4.4 Analysis of brand trust and reputation
Through this measurement we aim to after restaurants adapted their strategies
estimate the level of fluctuations in the To analyse the interconnection between
chosen strategies and the pace of their restaurant strategies, brand trust and brand
implementation and, later on, alleviation as reputation we use the following model
of the whole period until October 10th. (See which was briefly introduced previously
Figure 4) (e.g. Figure 1).
Through usage of the matrix the adapted
strategies of the four restaurants become
clearer. In Sweden, which kept a similar
position throughout the crisis there was no
need for change or action from Frantzen’s
point of view (see Appendices 8.1 for visual
representation), while in Denmark the
environment dictated a radical change of
business model in order for Noma to sustain
its market position (see Appendices 8.4 for
visual representation). In Happy’s case, the
market was already well versed with the
Figure 1After taking a closer look at the different since the restaurant is still very much
strategies implemented by the restaurants respected, but this can be attributed to the
while taking into account their country cutback of tables served as well as guests
specific covid-19 approach, it is possible to allowed within the establishment. The
evaluate the concepts of brand trust and surviving popularity of the restaurant is
brand reputation and how they relate to said visible in the fact that it is fully booked up
changes. Are we able to identify certain until the end of year (Hof van Cleve). The
changes with regard to brand trust and/or customers’ perception of the brand has not
brand reputation within our four chosen changed and it is still considered Belgium’s
restaurants? number one restaurant. They expect, and
receive, the quality that Hof van Cleve
First of all, after analysing the case of
stands for and the new covid-19 strategy has
Frantzén (Sweden) it is noticeable that the
not made an evident adjustment to that.
restaurant did not make any changes to its
regular, every day, operations. Although a Furthermore, Happy (Bulgaria) kept their
big part of the restaurant’s clientele consists brand image, promise and quality delivery
of international guests it has not been service while mainly relying on their
possible to detect a specific loss in trust or reputation to keep attracting customers
reputation. The brand’s reputation has been during the pandemic. The cornerstone of
a key aspect in maintaining its loyal their strategy is offering the usual service
customer base. Today, it is still necessary to while putting extra emphasis on
make reservations on the first day of each communicating the adjustments they made
month if you want to make sure you have with regard to covid-19. This was done in
your place secured and there is no evidence an attempt to increase brand trust in which
that indicates customers are more reluctant they definitely succeeded. Sales saw an
than they were before about visiting the increase of ten percent, according to
establishment. Customers are still willing to manager Iliev, and this was directly
pay the initial price since the service quality attributed to the trust consumers had in
and the experiences, as discussed by Happy due to the fact that meals were
Erkmen & Hancer (2019), remain the same. entirely prepared inside the restaurants
Frantzén persists in keeping its core values (Forbes България, 2020).
and aims to deliver the same service as prior The reputation of the brand did not decrease
to the pandemic. When taking a look at due to their efficient communication and
customer reviews from the start of the implementation of the government
pandemic on European soil (March 2020) regulations. CSR also played an important
until today using designated websites, such role in doing this. By showing that the
as there are TripAdvisor, we are able to restaurant cares for its customers and
identify the continuation of the same employees they kept their customer base
positive trend (TripAdvisor, 2020). and the trust of the people. Even though
After that, we concluded that Hof van Cleve their decision to use plastic bags as
(Belgium) had to make several radical additional protection cannot be considered
changes to their strategy to comply with the as environmentally friendly, they were able
covid-19 regulations put into force by the to communicate their prioritisation of
Belgian government. Similar to Frantzén, public health as a much more pressing issue.
the restaurant heavily relied on its brand Finally, Noma (Denmark) changed their
reputation to attract customers although in brand image largely from a two-star
the case of Hof van Cleve we can observe a Michelin ranked restaurant when they
decline in the number of customers. This decided to sell hamburgers outside the
reduction, however, has nothing to do with establishment as a burger bar. However, the
a decline in brand reputation or brand trust, restaurant’s reputation and previouslyestablished trust and relationships made it covid-19 imposed travel restrictions in
possible to turn it into an instant success. many countries, fine dining restaurants
Customers were willing to pay between $19 were expected to be impacted severely by
and $23 per burger due to the quality the pandemic. However, according to the
guarantee that comes with the positive findings of the present research, fine dining
associations made with the Noma brand restaurants were able to maintain their
regarding trust and reputation. The customer base during the unprecedented
exclusivity that is normally associated with measures that were introduced due to the
the restaurant was also kept as they virus. This could be achieved through the
communicated that the burgers would only customers’ already existing brand trust and
be sold until the end of June 2020 (Insider, reputation which proves to be particularly
2020). Noma satisfied their customers’ high for fine dining restaurants. It is
wants in a unique way due to Noma’s high important to note that this holds true for all
flexibility and ability to adapt quickly to the three countries despite their different
changing environment. The radical and approaches to reduce the spread of the virus.
successful change in strategy indicates that These insights highlight the paramount role
Noma has a deep understanding about their for managers to lay an emphasis in
customers and simultaneously implies marketing strategy formulation and
strong customer relationship. implementation on fostering brand trust and
making meaningful CSR efforts for a
positive reputation among customers.
5. General and contextual
Happy has managed to implement a
implications marketing strategy that provided customers
The current research provides general and with stability in a highly uncertain and
contextual managerial implications. In unprecedented situation. Happy has become
general, due to the high relevance of an actor in supporting the emotional
employee compliance with situational stability of citizens and customers feeling
requirements in the restaurant industry, the pressured by external circumstances that
paper reflects on how to strengthen resulted from the covid-19 health crisis. In
employee commitment and involvement to other words, Happy’s awareness of new
compliance. These insights go hand in hand customer demands and values and the
with creating a meaningful customer importance of actively responding to those
relationship and promoting a positive changed customer wants has strengthened
customer perception of the restaurant image customer relationships.
and reputation. Moreover, following the Given the recency of this topic, there is a
paper’s findings, it is recommended that lack of literature and empirical data on
restaurant managers are sensitive to cultural restaurant strategies during the times of the
settings and external circumstances in their pandemic. Once the pandemic reaches a
CSR strategy formulation. Finally, findings more progressive state, more data such as
state the need for restaurant brand managers there is impact on profit, organisational
to align brand personality with the performance and customer feedback of the
customer’s self-image. In uncertain times, respective restaurant strategies will emerge.
such as during the Covid-19 pandemic, this These insights can then be utilised to
implies for managers to be adaptable to and expand research in form of, for instance,
aware of changing customer values. statistically significant quantitative studies
Contextual implications can be drawn from that analyse more restaurants and countries
the cases of Frantzén, Noma and Hof van or through usage of empirical data on
Cleve. Given that fine dining restaurants different or additional customer values that
heavily rely on international guests but evolved from the crisis and how restaurantsneed to adapt to those new customer wants what-swedens-restaurants-learned-staying-
and needs. Moreover, this can be linked to open-in-pandemic [Accessed 6 October
the relevance of deepened research about 2020]
the role of restaurants’ peripheral and core Bartik, A., Bertrand, M., Cullen, Z.,
values when adapting to changed external Glaeser, E. L., Luca, M., & Stanton, C.
circumstances. (2020). How are Small Businesses
Finally, future research evaluating post Adjusting to COVID-19? Early Evidence
covid-19 restaurant strategies in different from a Survey. SSRN Electronic Journal.
countries and cultural settings may lead to https://doi.org/10.2139/ssrn.3574741
valuable theoretical and managerial BBC News. (2020). The World In
implications depending on if the covid-19 Lockdown In Maps And Charts. [online]
pandemic lastingly changed the restaurant Available at:
industry. [Accessed 12 October 2020].
6. Conclusion Belgium. (2020). Coronavirus: Versterkte
maatregelen. Available online:
In conclusion, the current paper elaborated
https://www.belgium.be/nl/nieuws/2020/co
on the aim to review different strategies that
ronavirus_versterkte_maatregelen
restaurants developed in response to the
[Accessed 6 October 2020]
covid-19 pandemic. The four cases
examined in this research emphasise the Belgium.be. (2020) Coronavirus:
relevance for restaurants to be sensitive reinforced measures Available at:
towards all concerned actors given the high https://www.belgium.be/en/news/2020/cor
involvement of the government and the onavirus_reinforced_measures [Accessed:
customers themselves. As represented in the October 12, 2020].
findings of the presented research, the level Brusselstimes.com. (2020). Allowing
of change in strategy and the need of Covid-19 to circulate freely to reach herd
adaptation in response to external immunity “not an option”, says WHO
circumstances have significant impact on Available at:
the customer’s brand trust and the https://www.brusselstimes.com/news/worl
restaurant’s reputation. Furthermore, d-all-news/135557/allowing-covid-19-to-
meaningful CSR efforts as well as circulate-freely-to-achieve-herd-immunity-
employee commitment and loyalty are is-not-an-option-says-who-director-
essential for creating ambassadors of the general-tedros-adhanom-ghebreyesus/
brand and a positive spill over effect on [Accessed: October 12, 2020].
reputation, trust and credibility. Gaining
more precise and concrete knowledge on Erkmen, E., & Hancer, M. (2019). Building
how various restaurant strategies impact the brand relationship for restaurants: An
customers in terms of brand trust, brand examination of other customers, brand
preference and relationship would be of image, trust, and restaurant attributes.
high value regarding future implications for International Journal of Contemporary
strategic brand managers. Hospitality Management, 31(3), 1469–
1487. https://doi.org/10.1108/IJCHM-08-
2017-0516
7. References FOD Economie. (2020). Gids voor de
Abend, L. (2020). Sweden’s Restaurants horeca. Available online:
Stayed Open in the Pandemic. This Is What https://economie.fgov.be/sites/default/files/
Their Chefs Learned, Available online: Files/Publications/files/coronavirus-gids-
https://www.vanityfair.com/style/2020/05/opening-horeca.pdf [Accessed 6 October Hu, X., Yan, H., Casey, T., & Wu, C.-H.
2020] (2020). Creating a safe haven during the
crisis: How organizations can achieve deep
Folkhalsomyndigheten.se. (2020). COVID-
compliance with COVID-19 safety
19: The Swedish strategy - The Public
measures in the hospitality industry.
Health Agency of Sweden Available at:
International Journal of Hospitality
https://www.folkhalsomyndigheten.se/the-
Management, 102662.
public-health-agency-of-
https://doi.org/https://doi.org/10.1016/j.ijh
sweden/communicable-disease-
m.2020.102662
control/covid-19--the-swedish-strategy/
[Accessed: October 12, 2020]. Insider. (2020). People Can't Get Enough
Of Noma's New Burger. [online] Available
Folkhalsomyndigheten.se. (2020).
at: [Accessed 6
smitta av covid-19 m.m. (HSLF- FS
October 2020].
2020:12) Available at:
https://www.folkhalsomyndigheten.se/glob iStock. (2020). Happy waitress working at a
alassets/publicerat- restaurant, COVID - 19 Concept. She
material/foreskrifter/konsoliderade/hslf- holds... [online] Available at:
fs_2020_12.pdf (Accessed: October 12, https://www.istockphoto.com/se/foto/glad-
2020). servitris-som-arbetar-p%C3%A5-
restaurang-covid-19-concept-
Frantzén Group. (2020). Available online:
gm1227116627-361788209 [Accessed 19
https://www.frantzengroup.com/restaurants
Oct. 2020].
/restaurant-frantzen/ [Accessed 6 October
2020] JellyPages.com. (2020). Noma opens a
burger bar: 100 meter-long queues News.
Government.se. (2020). Available online:
[online] JellyPages.com. Available at:
https://www.government.se/articles/2020/0
https://www.jellypages.com/breaking/Nom
4/strategy-in-response-to-the-covid-19-
a-opens-a-burger-bar-100-meter-long-
pandemic/ [Accessed 6 October 2020]
queues-h100141.html [Accessed 19 Oct.
Gursoy, D., & Chi, C. G. (2020). Effects of 2020].
COVID-19 pandemic on hospitality
Joynstudio. (2017). Frantzén. [online]
industry: review of the current situations
Available at:
and a research agenda. Journal of
http://www.joynstudio.se/portfolio/frantze
Hospitality Marketing and Management,
n-2-0/ [Accessed 19 Oct. 2020].
29(5), 527–529.
https://doi.org/10.1080/19368623.2020.17 Krisinformation. (2020). Available online:
88231 https://www.krisinformation.se/en/hazards-
and-risks/disasters-and-
Hof van Cleve. (2020). Available online:
incidents/2020/official-information-on-the-
Hofvancleve.com [Accessed 6 October
new-coronavirus/restriktioner-och-forbud
2020]
[Accessed 6 October 2020]
Hosie, R. (2020). The former best restaurant Statista. (2020). Available online:
in the world is reopening this week as a https://www.statista.com/statistics/110392
wine and burger bar “open to everyone.” 8/coronavirus-restaurant-visitation-impact/
[online] Insider. Available at: [Accessed 6 October 2020]
https://www.insider.com/noma-reopens-
Martuscelli, C. and Moens, B. (2020).
post-lockdown-as-wine-and-burger-bar-
copenhagen-2020-5 [Accessed 19 Oct. Restaurants and bars to reopen in Belgium,
POLITICO. Available at:
2020].
https://www.politico.eu/article/restaurants-and-bars-to-reopen-in-belgium/ [Accessed: TripAdvisor. 2020. Frantzén. Available
October 12, 2020]. online:
https://www.tripadvisor.se/Restaurant_Rev
Ou, J., Wong, I. A., & Huang, G. I. (2021).
iew-g189852-d12911077-Reviews-
The coevolutionary process of restaurant
Frantzen-Stockholm.html [Accessed 8
CSR in the time of mega disruption.
October 2020]
International Journal of Hospitality
Management, 92, 102684. Tripadvisor. (2020). HAPPY BAR AND
https://doi.org/https://doi.org/10.1016/j.ijh GRILL, Sofia - Oborishte - Menu, Prices &
m.2020.102684 Restaurant Reviews. [online] Available at:
https://www.tripadvisor.co.nz/Restaurant_
Our World in Data. (2020). Policy
Review-g294452-d1629787-Reviews-
Responses To The Coronavirus Pandemic -
Happy_Bar_and_Grill-
Statistics And Research. [online] Available
Sofia_Sofia_Region.html [Accessed 19
at: [Accessed 12 October
2020]. UI - 50B - Restaurants - GLOBAL. (2019).
Hof Van Cleve. [online] Available at:
Politi.dk. (2020). Outbreak Control
https://www.theworlds50best.com/the-
Measures Available at: https://politi.dk/en/-
/media/mediefiler/corona/engelsk/outbreak list/41-50/Hof-Van-Cleve.html [Accessed
19 Oct. 2020].
-control-
measures.pdf?la=en&hash=E082FB214E3 UI - 50B - Restaurants - GLOBAL. (2020).
BC7E3F56FD65411BFF68296CC2F23 Noma. [online] Available at:
[Accessed: October 12, 2020]. [Accessed 6 October
Politi.dk. (2020). Political Agreements And
2020].
Initiatives | | Danish Police. [online]
Available at: Vlaanderen. (2020). Coronacrisis - Sluiting
[Accessed 6 October 2020]. https://www.vlaanderen.be/gezondheid-en-
welzijn/gezondheid/gezondheid-en-
Riksdagsförvaltningen (2020). New act
preventie-tijdens-de-
regarding temporary communicable
coronacrisis/coronacrisis-sluiting-en-
disease control measures at venues serving
heropening-handelszaken [Accessed 6
food and drink, Riksdagen.se. Available at:
October 2020]
https://www.riksdagen.se/en/news/2020/ju
n/17/new-act-regarding-temporary- www.andyhayler.com. (2014). Review of
communicable-disease-control-measures- French Restaurant Hof van Cleve in
at-venues-serving-food-and-drink/ Belgium by Andy Hayler in September
[Accessed: October 12, 2020]. 2014. [online] Available at:
https://www.andyhayler.com/restaurant/ho
The Spaces. (2020). Noma will reopen this
f-van-cleve [Accessed 19 Oct. 2020].
week as a burger bar. [online] Available at:
https://thespaces.com/noma-will-reopen-
this-week-as-a-burger-bar/ [Accessed 19 References in Cyrillic
Oct. 2020].
Coronavirus.bg. (2020). Архив - Заповеди
Time. (2018). Noma: The World’s 100 На Министъра На Здравеопазването.
Greatest Places of 2018. [online] Available [online] Available at:
at: https://time.com/collection/worlds- [Accessed
greatest-places-2018/5359178/noma- 12 October 2020].
copenhagen-denmark/.Coronavirus.bg. (2020). Заповед № РД-01- Happy Bar & Grill. (2020). Хепи Доставка 124 За Въвеждане На със засилени мерки за безопасност. Противоепидемични Мерки В Страната [online] Available at: (Отменена Със Заповед № РД-01- https://www.youtube.com/watch?v=tM4L4 263/14.05.2020 Г.). [online] Available at: jgXVM0 [Accessed 19 Oct. 2020]. [Accessed (Translated by author) 12 October 2020]. offnews.bg. (2020). Happy с Dun&Bradstreet. (2019). HAPPY EAD безпрецедентни мерки за хигиена и Company Profile. [online] Available at: защита | Общество. [online] Available at: [Accessed 6 October 2020]. (Translated by author) 2020]. (Translated by author) Rzi-vt.bg. (2020). Указания За Forbes България. (2020). Да Боднем Функциониране На Места За Вкъщи. [online] Available at: Настаняване И Заведения За Хранене И [Accessed 6 October 2020]. (Translated by author) (Translated by author)
8. Appendices
8.1 Frantzén in Sweden – the restaurant venue
Figure 5: The venue inside (Joynstudio,2017) Figure 6: The venue outside (Joynstudio, 2017)
8.2 Hof van Cleve in Belgium – the restaurant venue
Figure 7: The venue inside (www.andyhayler.com, 2014) Figure 8: The venue outside (UI -50B- Restaurants – GLOBAL., 2019)8.3 Happy in Bulgaria – the restaurant before and after introduction of measures
Figure 10: The Happy venue and service after the begining of the pandemic
Figure 9: The Happy venue before the pandemic (TripAdvisor, 2020) (iStock, 2020)
Figure 11: Packaging of delivery orders. On picture text: Packaging and Figure 12: Dlivery of order to the customer. On picture text: The order is
closing in a bag (Happy Bar & Grill, 2020) already at your door! (Happy Bar & Grill, 2020)8.4 Noma in Denmark – the restaurant before and after introduction of measures Figure 13: Noma, before the pandemic (Time, 2018) Figure 14: Noma, after the begining of the pandemic (Hosie, R.,2020) Figure 15: Noma’s Burger bar venue (The Spaces, 2020) Figure 16: Que for the Noma Burger bar (JellyPages.com, 2020)
You can also read
