As governments worldwide responded to the initial wave of the Covid-19 pandemic in early 2020 with virtually complete economic shutdowns, the restaurant industry was one of the worst hit. And some of the impacts still linger today.
In the U.S., roughly 14% of restaurants closed for good during the first year of the pandemic, and more than a third of Peru’s 200,000 restaurants shut down.
The trying times amid the devastating spread of the illness didn’t spare Acurio Restaurantes, but they failed to upend the business.
Instead, the company muscled through the challenges, extracted key lessons, and emerged with a renewed approach to expanding the reach of Peruvian cuisine across the globe.
As the pandemic swept across the globe in early 2020, governments primarily responded by halting all face-to-face commerce.
For example, within days of the World Health Organization’s official pandemic declaration on March 11, 2020, the Peruvian government declared a nationwide state of emergency, which prohibited people from gathering in groups, including restaurants. The U.S. federal government also declared a nationwide emergency and state governments followed with orders that nonessential businesses, including restaurants, must close.
Although officials started to lift complete bans three to six months later, limited capacity was the norm through much of 2021. For example, in Peru, full restrictions were eased in July 2020, but eateries were only allowed to serve a fraction of their pre-pandemic capacity.
Those allowances gradually increased, but follow-on waves of the virus also diminished business levels into 2022.
Meanwhile, the restrictions on dine-in activities and subsequent fallout led to a decline of customer footfall in restaurants that managed to stay open. This also led to shifts in consumer behavior, which is always tough to regain.
To adjust to the impacts of the pandemic, Acurio Restaurantes swiftly pivoted its operations in each of its markets.
Embracing digital technologies, each restaurant expanded its online ordering and delivery services to reach customers who preferred to remain in the safety of their homes.
Within each location, stringent safety measures were implemented to ensure the well-being of both staff and customers during any limited dine-in services that were permitted.
More broadly, a goal to emerge from the pandemic stronger involved a strategic focus on innovation. Acurio Restaurantes explored creative solutions such as introducing new menu items, optimizing the use of outdoor dining spaces, and enhancing the overall customer experience. Collaborations with food delivery platforms and the use of technology for contactless transactions became integral parts of the revamped business model.
Chef Gaston Acurio
Reflecting the company’s broader vision, community engagement also played a crucial role in the recovery process for Acurio Restaurantes.
Employees throughout the company fostered a sense of unity by supporting local initiatives, participating in community outreach, and emphasizing the importance of shared experiences around food.
For example, company founder Gastón Acurio worked with students at Cocina de Pachacútec, the culinary arm of the Fundación Pachacútec that he helped establish, to prepare 350 meals a day for health care workers at the Daniel Alcides Carrión National Hospital.
As the pandemic first hit and evolved, the ability of Acurio Restaurantes to adapt, innovate, and engage with their community contributed to its resilience and contributed to its success at drawing patrons back into its sites after in-store dining was re-introduced and expanded.
As the crisis phase subsided, new challenges to the restaurant industry arose, including inflationary pressures on ingredients and other costs as well as a stretched labor pool. The latter resulted in part from a reluctance among some front-line employees deciding on a different career path after the pandemic turmoil.
Knowing that success does not follow a straight line, Acurio Restaurantes responded to the cost challenge with an approach shaped by Gastón, who took a pragmatic look at how the pandemic affected broader society’s perception of haute cuisine. At a post-pandemic industry event, he predicted that haute cuisine would move past the resistance stage that the crisis brought about and emerge with a more pragmatic mindset.
Specifically, he explained that priorities had shifted and it was fair to question the value of certain ingredients, which may only add to the cost of dishes. A translated quote from his appearance said fine cuisine should be “more affordable economically, socially, culturally, and environmentally.”
Think of the authentic and approachable philosophy of the Jarana restaurants.
As for the workforce challenges, Acurio Restaurantes has long considered some of its most valuable assets its people. Therefore, it continues to provide viable career paths and pay in the upper tiers of local wages.
Acurio Restaurantes’ efforts to outlast the worst of the pandemic and emerge stronger involved not just overcoming immediate challenges, but strategically positioning each of the company’s restaurants for long-term success in a transformed industry landscape.
The lessons learned during this period are likely to shape the future of the company, helping ensure that Acurio Restaurantes and its leadership remain agile and responsive to the ever-changing dynamics of the culinary world.
For more information on investing in one of the world’s most durable restaurant companies, contact OTG Asset Management at peinfo@otgam.net today.