Impact of Covid-19 on Customer Buying Behavior

Grocery business has been under immense pressure during the past six weeks. As the COVID-19 crisis hit
in early March, grocery shop have been facing supply chain issues, panic buying and safety issues on
essential items. Because of the panic issue, grocery shopping is seeing a fall in overall shopping visits as
well as a sudden digital shift. With the coronavirus outbreak, e-commerce platforms are going through
dramatic speed in sales, which is basically for the new customers trying online grocery shopping. The
government has taken precautionary measures such as store closure and social distancing are some of
the major factors driving the e-commerce market growth. Many more consumers are changing their
buying habits in response to the COVID-19 outbreak. When comparing channel shopping behaviors,
many shoppers reported going to shop less frequently, especially mass merchandisers.

Keeping inventory is becoming more commonplace. More shoppers indicated purchasing essential food
items in addition to sanitizing products. About half of Bangladeshi shoppers said they made an
additional stock-up grocery trip in the past week.maximum shoppers experienced out-of-stocks, and of
those shoppers, then found a alternate for half or more of their unavailable items.

The current picture of food shopping has shifted, and grocery stores have stepped up to make item
availability, health, and safety a priority for customers. With new information being released every day,
consumer preferences are changing by time. There are few trends that is identified in grocery shopper
behavior and a few tips have been given to help stores remain agile:

Grocery pickup orders have increased:

In recent years, e-commerce has made the shopping experience easier for customers. The grocery
industry is no difference to this movement—many stores have been started out grocery pickup and
delivery either internally or through an external partner like pathao . While shoppers have been slow to
take advantage of these services, COVID-19 has pushed up their interest. No matter how shoppers are
getting their groceries, their health and safety should be top-of-mind for brands.

Customers doing bulk shopping

coronavirus outbreak is driving customers to stock-up and buy in bulk. customers were used to buy
anything whenever they needed within a day or two. However, the situation is not the same anymore.
Major online stores like chaldal,priyo shop etc are facing difficulties to take new grocery orders for now
as they are facing exceptionally high demand for delivery slots. As a result, the trend of making large
orders seems to be on the rise. Demand for groceries has rised to such a huge amount that e-commerce
giants are unable to fulfill customer needs and requirements.

Satisfaction level have shifted

In the week after March 11, grocery traffic was higher than usual because of the panic-shopping. During
this rush, Cleanliness became top priorities ahead of Speed of Checkout, Availability of Assistance, and
Ease of Moving through Store. Shoppers were more concerned about sanitation than checking in and
out quickly. But this changed again starting March 22—almost two weeks after the outbreak was
became a pandemic. Store traffic suddenly became normal. During this time frame, Speed of Checkout
became top-of-mind and changed ahead of where it was before the pandemic, and Cleanliness returned
to the near-bottom of the list. The checkout process has slowed down for many because of enhanced
sanitization practices like social distancing, wearing gloves, and discontinuing the use of personal
reusable bags. And again because of the more staff focusing on the cleanliness of the store and product
availability, there are fewer employees left who are manning the checkout lines.

Demand for canned food item other than fresh one:

There are sudden rise of packaged or canned food products instead of fresh and exotic food. because
customers are not willing to take the risks of having items that may have travelled long distances and
exchanged many hands with little or no prove of maintaining their hygiene..

How Business Can Respond to Changing Customer Buying Behavior

1.Quality and trust are the top priority for customer: As the covid-19 pandemic outbreak worldwide
customer buying behavior is shifting from a cost-saving nature. Today, customers give more attention to
the quality and safety of the products. To cope up with this change businesses need to communicate
their safety measures clearly to customers. These strategic initiatives can help businesses to build the
trust and rising sales.

2. be the new supplier:

there are many online store those are in need of supply of grocery item. If the owner of any grocery can
feel that his business is not running properly then he can be connected to different online shop that are
already delivering different product to the customer because they already have a platform to sell. If they
get more supplies from the shopkeeper then it will be a win win situation for both of them.

2 communicate about the origin of the product

Today, shoppers want to know complete transparency from farm to factory to distribution and details of
procedures followed to assure product safety. here, promoting a product’s local origin can help the
shoppers to believe them and which in return rise the sale.

3. Shifting towards technology

With digital connectivity business person can easily promote their product online, take order and also
provide home delivery smoothly. Since mane shoppers are too scared to go outside for groceries it will
be really convenient for them if the businessman can go online to sell. Also By keeping a continuous
track on customer buying behavior, businesses can better plan and act smartly.

4.Wear personal protective equipment (PPE): For customer-facing employees, this is especially
important to make to shoppers feel relief about but from the shop. Shoppers will feel much safer
receiving their order from someone wearing gloves and a face mask.

Coronavirus has brought on a new set of circumstances for everyone. Grocers can embrace the traction
that curbside pickup is getting—and by enhancing the process now, customers will be more apt to
return to it in the future.

Restaurant Behavior Insights

Maximum diners are extremely worried about getting infected if they would go to the restaurant. After
the lockdown happened the food order via online became double instead of physically being there and
enjoy the meal. Besides people are now extra conscious about spending money for a meal outside since
it will cost more than five thousand for a family dining in any renowned restaurant. There is no doubt
that the hospitality industry has been among the hardest affected by COVID-19. With customer
expectations changing rapidly, consumers are preferring restaurants that offer safety, convenience,
value and most of all a service they can trust. The brands that are put more effort to build trust with
consumers today will be rewarded with more loyal customers tomorrow.

1. More than 3 out of 4 buyers are worried about their wellbeing with an immediate connection with
age and level of concern—while just few of them in percent are not in any way concerned. That is to be
expected during a pandemic, however it's significant for brands to see how to screen, monitor and
follow up on quickly advancing buyer conduct.

2. Drive-through is the most favored approach to get food to the customers. drive-through has
developed as the most famous approach to get food from restaurants, with more than 66% of buyers
over all age considering it as an convenient channel. Carry-out and to-go orders are the second most
favored choices, with millennial and Gen Z shoppers inclining toward it more than older consumers.
While behaviors change across ages, the key for brands is to have the option to convey a seamless
dining experience that shoppers can trust.

3. Delivery usage is on the increase. Since coronavirus was declared an endemic on March eleven, a
huge number of customers report a rise in delivery usage—with the biggest increase in usage returning
from shoppers age 25–34 . another portion of these customers says they use delivery less, and that’s
true across age groups. Basically there are numerous factors potentially plays role—including
preparedness and budget consciousness—it’s clear restaurants can’t rely solely on delivery when it
comes to providing a seamless and contactless experience.

4. cleanliness play highest priority to the customers and they’re reforming their impression about the
restaurant since coronavirus was declared an endemic, there has been a shift in key drivers of overall
satisfaction across owners of restaurants, with cleanliness rising most quickly.

how restaurant habits have changed during the pandemic.

Focus more on Quality Dining Experience and Sanitation

Even though people are ordering online but at the same time they are very much willing to go the
restaurant to have a fine dining experience after the withdrawal of the lockdown. But they are very
much conscious about themselves as well. They won’t pay any visit till they find out that it is safe for
them to go there. To make them comfortable and safe the owner have to emphasize on quality dinning
experience. They need to make it transparent about all their effort about customers safety to make the
customer feel home.

Renovating interior:

Restaurants might consider using automatic doors, or having a host or hostess open doors for the guest
entering the restaurant or restrooms. Constant, visible cleaning will also be likely a must. even when
counters and other surfaces are already clean. Also they can make an open kitchen with taking proper
safety so that customer can see that they are taken care of things properly.

Waiters wearing medical mask

Bottom line: it is likely that consumers will put a greater overall weight towards choosing establishments
that emphasize cleanliness in their marketing, in addition to those that offer a higher quality of service.

Preference for Locally-Sourced Foods

With international trade severely disrupted and traditional food processing facilities and markets
closing, local food companies have had to meet the overwhelming demand and innovate how they get
products to their customers. For suppliers, sourcing locally makes perfect business sense at this time
because reliance on local companies can reduce the pressure of international supply chain shocks.

Turn out to takeout deliveries

There are a huge number of restaurants who has never done take out as they are very posh restaurants
believe in giving the customers a super cozy and posh experience while dinning. These restaurants never
believe in giving any home deliveries as its impossible to justify them with just the food whereas they
put so much effort to whole interior and the environment of the restaurant to give it a elegant,
fashionable a posh experience to them which they believe not possible to make it with just the food
with home delivery. They give the customers a package experience food is just the part of them. But to
beat the covid and to survive in this pandemic they all are shifting towards take out to earn a bit.

For that they can have up to five people in the restaurant at a time to pick up orders. Use disposable
gloves to hand over the food. sanitize or change gloves between each orderAdd a bottle of hand
sanitizer and paper towels with a sign encouraging your customers to use it.Some downtown areas are
creating centralized pickup zones for takeout food.

Make it easy to place and pay for an order with the restaurant — in person, on the phone and online. If
you do not have your POS system set up to take online orders, now is the time. Older generations are
discovering what millennials have known for years — it is very easy and convenient to order your dinner
online, pick it up and enjoy it from the comfort of your own home. This is going to be your new normal.
Even after the crisis is over, your clients are going to want the convenience of takeout and delivery.
Making the change now will not only help you survive in the short term, it will help you thrive in the long
term.

Communicate, communicate, communicateAs the COVID-19 pandemic continues, your customers are
going to be even more scared, stressed and isolated. Don’t rely only on social media to communicate
with your best customers. Reach out to them with personal letters, emails, calls, and texts. Let them
know you’re open, that you have safe practices and that their business means more to you now than
ever. Be positive, helpful and informative. Here are some suggestions:

Record a short video outlining the safety practices in your restaurant and put it on social media. Assure
your customers that the food they get from you is safe, as well as delicious.

Don’t assume everyone knows you are open. Post daily updates with hours and specials.

Send email blasts to your customers — everyone is stuck inside right now, so your emails are more likely
to be read. Make them as welcoming, reassuring and as appetizing as possible.

Be positive in your messaging — we are all in this together.

This is a difficult time for you, your business and your customers. However, as a restaurateur, you know
that your restaurant can be a source of positive influence in your community. You do more than serve
food. You support employees, you provide comfort and a friendly smile and, of course, you feed your
patrons. Use this slowdown as a time to sharpen your skills, refine your processes and put out the very
best product you can. Your customers want you to succeed, and so do we.

Right now, we are dealing with forced closures of services and even borders, public health advice to
keep distance socially, and considerable consumer health concerns. This is highly likely to be followed by
low consumer confidence, less disposable income and continued health concerns - not to mention the
potential societal changes that may result in long term reductions in travel as companies have been
forced to manage in (low-cost) remote working modes.

During this time we will be fighting for every sale, but what can be done to keep the money coming in?

Reassure you customers that you are taking the risks seriously through your processes and procedures.
Look to spread out tables more than usual. Communicate the actions you are taking in store and online.
Reassure your guests that you take disinfection of surfaces seriously.

Take even better care of the guests that come. Give them the best experience you can with extra special
touches - this will help you drive more repeat business, but also reinforce good old word of mouth and
online reviews.

Make more from each guest. Alongside taking care of each guest, remember that people are likely to be
eating or drinking out less often right now, so they may be more willing to spend more when they are.
So be sure to upsell those sides, bottles of wine and desserts.

Look to delivery & collection.Like the old proverb says "if the mountain won't come to Muhammad, then
Muhammad must go to the mountain." While people may not come out to your restaurant, they still
must eat, so consider how you can maximise the delivery business. If you offer your own delivery, offer
to do no-contact drop off or even popping food out to people's cars if they drive to collect. Promote it
out to your databases and on social media with keywords such as safe at home and reinforce the actions
you are taking in reducing contamination.

Recipe boxes.A step further on from the delivery and collection opportunity, you could look to offer
recipe boxes with the items needed to cook guests' favourite items on your menu.

Encourage people to buy gift vouchers. Many restaurants have turned to encourage customers to buy
gift vouchers for future visits or gifts, which is a great idea. This will bring cash in the short term, and
ensure that you will have guests in the restaurant in the future.

Create low key reasons to visit. With major events being cancelled and potential health concerns
aroundbig gatherings, you could look to put on low key seated events on a local level - keeping numbers
manageable and distance between the tables.

Convert more guests. Think about what incentives you can give to the team to help them drive the local
marketing on their site. If you are within a hotel, consider incentivising the reception team. Each time
make the team ask if they can book the table, not if they would like to, but "Can I book you a table for
tonight?", language matters.

Home Thoughts How the Food Service Industry Can Survive the Coronavirus Pandemic
As the coronavirus continues to spread worldwide, restaurants and food services companies are
affected in various ways. With major countries having declared a state of emergency, closure of non-
essential businesses, and social distancing, the food service industry sales are down by around 80%.
While few restaurants are able to maintain normal revenues by providing meals via takeout and delivery
options, others are still confused on whether to choose to remain open or close temporarily. For
restaurants to survive during the coronavirus crisis, they will need to find creative solutions and adapt to
customers’ plight. As customers are more budget-conscious these days, one strategy for restaurant
owners to consider is creating new discounted entrees. Also, adding healthy food items on the menu
can help attract new customers.

Prioritize employee health and wellness

Today, restaurant businesses are encountering labor shortage challenges and high turnover rates,
compelling restaurant owners to focus into keeping their staff safe and healthy. In the middle of such an
escalating health crisis, food service companies will need to connect with their employees and try to
understand their needs. This can be done by implementing an EAP (employee assistance program)
process. Also, small restaurants can choose to partner with a third-party service provider and ensure
business continuity by providing home delivery options. While others can choose to offer paid sick leave
and build trust of employees. Moreover, food service companies should ramp up cleaning processes to
ensure safety of customers as well as their employees. This can be done by installing hand sanitizing
stations, installing sanitary door openers on washroom and kitchen doors, sanitizing POS system, and
man Reassure customers

As retaining customers are highly imperative for continuity of business operations, food service
companies will need to efficiently communicate with their valuable customers regarding changes they
may be making, share sanitization procedures, and encourage support. Any mode of communication
such as website, social media, customized emails, and marketing advertisements can be used for the
same. Of all these, targeted marketing campaigns can help companies in the restaurant business to
reach out to the audience with personalized messages.

Analyzing past customer data and providing valuable customers with a reward or discount can help food
service companies to retain valuable customers and increase online orders. Also, as customers are now
looking for budget-friendly meals, restaurants must scale up menu and look for new ways to reduce
operating costs. Besides, offering an all-day breakfast and brunch menu can generate more business as
most people are working from homely more.

Fastfood:
As the novel coronavirus outbreak has impacted many of the retailers
across the United States, fast-food chains are doing everything they can
to keep their customers as safe as possible. Many chains have had to
shutter their dining rooms in response to stay-at-home orders in 45
states and counting, per The New York Times, in an attempt to prevent
COVID-19 from further spreading among communities. But most are
pivoting to pick-up and delivery operations — and some are offering new
services altogether, including groceries for customers who are having
trouble securing staples at their local supermarket.

The majority of big fast food chains are planning to stay open, many with
temporary operational changes as states extend social distancing
measures. Picking up take-out is certainly an option, even if the store
doesn't have a drive-thru window. Some chains may also have
introduced new delivery options or lifted delivery fees altogether to allow
people to safely stay home. All of the 20 plus restaurants on this
list are offering free delivery for customers, including contactless
delivery, which means you can simply have your meal dropped on your
doorstep.

To be clear, the Centers for Disease Control and Prevention (CDC)

believes that the coronavirus is spread from person to person, mainly
through respiratory droplets produced when an infected person sneezes,
coughs, or speaks rapidly in close proximity to someone else. To date, the
CDC hasn't reported any cases where patients contracted COVID-19 by
eating food, and the risk associated with handling delivery materials (the
bags and boxes the food is delivered in) is much lower compared to
actually getting face-to-face with delivery personnel or the employees in
a fast-food chain. That said, it's crucial to do what feels right for you.

It's also important to note that officials in as many as 30 states

(including Illinois, Connecticut, Colorado, Iowa, Kentucky, New York,
New Jersey, Pennsylvania, Louisiana, New Hampshire, Maryland,
Michigan, Indiana, Massachusetts, Ohio, Vermont, and Washington,
among others) have temporarily shut down restaurants and bars,
allowing only takeout and delivery service, to slow the spread of the
virus. Given the rapidly changing pace of the COVID-19 outbreak, it's
best to call ahead to your fast-food store to get the most up-to-
date info on closings, hour changes, and more.
Here are some of the fast-food restaurants that are operating with changes or closing some locations:

Chick-fil-A: Restaurants nationwide will temporarily close dining room seating. Customers can still
purchase items by utilizing the restaurants’ drive-thrus, takeout, delivery, or mobile order options.

Starbucks: The coffee store chain will take away seating at all stores nationwide and close some
locations in high-social areas, such as college campuses and shopping malls. Customers can now only
order via drive-thru and delivery options. The company also said it would be temporarily closing stores
or reducing hours in select cities.

Chipotle: Chipotle has expanded its delivery offerings with the help of Uber Eats, and has adopted
tamper-proof seals on its food orders to make sure guests know their meal hasn't been touched during
the delivery process.

KFC: When you order through KFC.com, Seamless, or GrubHub, you'll get free delivery through April 26.

McDonald's: The popular chain's seating and play areas will be closed for all U.S. restaurants starting
March 17. The company declared that it would be focusing on "serving customers through drive-thru,
walk-in takeout, and McDelivery."

MOD Pizza: Beginning March 17, stores will be eliminating in-store dining and moving to takeout,
pickup, and delivery only. The pizza chain notes that you can still come into the store to order if you
wish, but you will need to take your food and exit the location once it is prepared. Online orders will be
waiting for customers near the front door at their new "Superfast Grab&Go" pickup spots. MOD is also
only accepting credit card payments on phone orders, and will temporarily be open from 11:30 a.m. -
8:30 p.m.

Moe's Southwest Grill: Restaurants will be offering free delivery on all orders of $10 or more purchased
through the Moe's app and Moes.com for the foreseeable future. The restaurants will make real-time
decisions to close dining rooms and offer pick-up services as an alternative to delivery.

Noodles & Company: Starting March 17, restaurants will close every day at 8 p.m. and the chain will
transition to delivery or carryout orders only (dining areas will not be open). Costumers can still use the
website, Noodles Rewards app, or call to place orders. At some locations, a pickup window will allow
guests to stay in their cars. Check what your restaurant is doing at Noodles.com/Locations.

Popeyes: Customers are now being offered free delivery through the Popeyes mobile app or when they
order on Popeyes.com. When inputting your delivery address, you can ask the driver to drop off the
food at your door, for a contactless delivery.

Qdoba: Effective March 19, Qdoba has made the decision to transition to limited-contact ordering. Dine-
in services across all Qdoba locations will be suspended temporarily as the restaurant chain moves
toward to-go orders only. Deliveries services in areas where offered will continue operating. Guests can
order to go in restaurants where allowed by local/state mandate, as well as online at Qdoba.com or via
the Qdoba app.
Taco Bell: Taco Bell will begin serving guests via drive-thru or delivery only "where necessary." Go to
TacoBell.com/Locations to get more info on your go-to location.

These chains are selling groceries, too:

Because many restaurant chains are not experiencing the same amount of orders they normally do,
some have pivoted to sell groceries to customers. These grocery offerings mostly consist of the raw
ingredients and kitchen staples they use to make meals every day, but it may help at-risk shoppers who
may feel adverse to entering supermarkets, or are having trouble getting groceries delivered, pick up
fresh ingredients. Panera was one of the first chains to pivot to selling groceries in addition to their
meals, according to the Associated Press.

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Panera: They've launched a new online service called Panera Grocery which provides items like milk,
eggs and more dairy, fresh produce, as well as their classic baked goods. You can order via Panera's
website or via Grubhub; it's delivered in the same way that meals are, or the groceries can be picked up
at a participating café.

Moe's Southwest Grill: The chain has introduced a Moe's Market service that allows customers to buy
meal kits to create their own versions of Mexican-inspired favorites. You can also order staple
ingredients used in Moe's dishes a la carte for delivery online.

California Pizza Kitchen: In April, the pizza chain began selling meal kits packed with ingredients that can
allow you to make their recipes at home. But the CPK Market also sells kits that are meant to just pad
your kitchen with things like produce, meats, seafood, milk, beer, and wine.

Subway: The sandwich chain is selling fresh groceries in more than 250 stores across California,
Connecticut, Oregon, Tennessee, and Washington, with potential plans to expand the service across
more states, according to the AP. You should call your local Subway to see if pantry and deli items are
available to you.

Potbelly Sandwich Shop: If you like sandwiches, you might want to check out Potbelly, which launched
Potbelly Pantry to help customers source ingredients to make subs at home. Mostly, the new pantry
sells items like sliced deli meats, cheeses, breads, and light produce and condiments.

You may be able to find groceries outside of chain retailers, too. The Associated Press reports that local
restaurants in cities across the nation have worked with providers like Sysco to modify their orders,
securing a wider array of grocery staples to sell to their patrons. Buying groceries from restaurants and
cafés may help local owners and staff as they face losses due to COVID-19 closings. Calling, emailing, or
reaching out to your favorite restaurant via social media might reveal that they, too, are offering grocery
delivery at this time.

Change up the menu

Your restaurant may be known for its gourmet food and fine-dining experience, but if you want to stay
open during this COVID-19 pandemic, you may need to change things up a little. Here are some tips:
Streamline your offerings — this is not the time for a 10-page menu. You will likely have limited kitchen
staff, so pick a few things you do well, are profitable and your customers love.

Use up inventory Create dishes that use what you have on hand. While we have not seen any issues in
the supply chain, it might be a good time to switch to canned and other shelf-stable ingredients. You can
always switch back when things are back to normal.

Create or modify offerings that stand up to travel Think of food items that are easy to pack and
transport. This has traditionally included pizza and sandwiches, but salads also do well. With people
grocery shopping less, they might appreciate some fresh salads and veggies on the menu.

Design family-style meals. Make it more economical and convenient to place a large order.