Impact of the COVID-19 Pandemic on the Food Industry

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09 Sep 2022

4 Min Read

Bridget Fong (Guest Contributor), Ailyn Low (Editor)

IN THIS ARTICLE

We share how the food industry can recover from the many disruptions caused by COVID-19.

The food and beverage (F&B) industry has been facing manpower shortages of about 40-50% since the start of the year. Despite many F&B owners offering more pay and flexible hours post-COVID pandemic, the problem still persists. 

 

We all saw how COVID disrupted different industries. While we saw a boom in food delivery services, many eateries had to close leading to the letting go of staff to reduce losses. This caused the lack of a stable income and job security. Additionally, as more restaurants close, relevant sectors and industries, like vegetable, fruit, and livestock farmers, inevitably suffer as well. 

 

But as businesses started to pick up again at the start of 2022, F&B business owners are still struggling with the lack of staffing.

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The Great Resignation and How COVID-19 Pandemic Changed the Way We Work Forever

With foreign workers returning home and local workers pivoting to accessible online jobs, many strayed from traditional brick-and-mortar jobs when they could no longer offer a stable income.

 

With the flexibility of arranging your own time and managing your own business, many people have opted to not go back to working for others, especially in F&B outlets. You probably have heard of the term ‘The Great Resignation’. Many have come to realise how much working has consumed their lives, in which they forgo their personal time and needs to socialise and would now rather spend more time with family and friends. Those in the food industry are definitely no exception to the phenomenon.

COVID-19 led to one of the biggest changes in the work field: The great resignation

With foreign workers returning home and local workers pivoting to accessible online jobs, many strayed from traditional brick-and-mortar jobs when they could no longer offer a stable income.

 

With the flexibility of arranging your own time and managing your own business, many people have opted to not go back to working for others, especially in F&B outlets. You probably have heard of the term ‘The Great Resignation’. Many have come to realise how much working has consumed their lives, in which they forgo their personal time and needs to socialise and would now rather spend more time with family and friends. Those in the food industry are definitely no exception to the phenomenon. 

 

This realisation has played a large role in the shift of mindset when it comes to the way we work. From working long hours with a low salary but a high workload to working for a fixed income and hours in other industries. Sounds like a better trade-off right?

The Perspective of Business Owners in the Food Industry on Staff Shortages

While employees are looking at their own well-being, business owners are struggling to keep their businesses afloat while seeking ways to attract more workers. To encourage people to work for them, some owners have adjusted operation hours, offer higher salaries, make better working environments, and even prepare a place to stay.

 

Nonetheless, these methods haven’t been very successful. With shorter operating hours, businesses are sacrificing 15-20% of daily revenue which, in turn, leads to an increment in their food prices. The owner of a local restaurant, Table & Apron, shared how they’re hoping to attract youngsters by collaborating with educational institutes to provide internships that will lead to management positions in the future. Tackling the understaffing issue with a different approach, Kanna Curry House also offered free iPhone SEs following certain requirements to entice more workers.

 

But with the added extra income out of the business owners’ pockets and more financial risks taken, is this really a sustainable solution to an ever-growing problem?

A Need for Innovative Government Solutions to Assist the Food Industry

The increment of the minimum wage from RM 1,500 to RM 1,800 encourages workers as it retains and regains interest and stability in comparison to a volatile income in the current economy. Employers were also encouraged to provide better working conditions as more employees are more determined to obtain a working condition that’s favourable to them. But is that enough?

 

Over 2,000 mamaks and restaurants have been closed down since 2020 due to a lack of staffing, yet there are still over 30,000 positions to be filled in the mamak scenes. Even though businesses have increased salaries and working environments, local Malaysians are still not keen to work in this industry. Why? 

 

There’s a stereotype of looking down on ‘dirty’ jobs, wages are still deemed too low, and it isn’t worth it to deal with rude customers daily. While the opening of borders in the first quarter of 2022 allowed the Ministry of Human Resources to open applications for foreign workers, we need to evaluate if this is the most sustainable way forward. We need to evaluate if there's a need for a shift in mindset and perspectives amongst locals. 

A light bulb indicating the need for ideas

Similarly, Singapore has also been inflicted with the same problems. To improve the situation in the service sector, government agencies worked closely with organisations to promote good jobs, encouraged local hiring, and eased up entry requirements into Singapore. To further stimulate career growth, training programmes have also been made available to the locals to upskill and encourage technological advancements like automated cleaning appliances. 

 

Perhaps it’s up to our government and the F&B scene to follow in their footsteps and to find means to educate Malaysians on the importance of the F&B industry.

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The Future of the Food and Beverage Industry Post-COVID

As F&B business owners are trying to keep up with the new normal, these challenges prove difficult to overcome. Between surviving with the bare resources, seeking new hires, and awaiting news and support from the government regarding foreign worker applications, it can be difficult. So what can we do?

 

Let's be more understanding of the difficulties small business owners in the food industry are going through. Let's be more compassionate to those facing staffing shortages that might influence the service and quality of these types of businesses. Let's continue spreading awareness about these struggles, in hopes to change the outlook of working in F&B industries in Malaysia.

A food court with many tables in Malaysia

Bridget Fong is currently studying Master of Architecture and spends her free time freelancing in graphic design and also painting concept art.

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