Special Section — COVID-19: Innovation, Technology, ManagementNo Access

How COVID-19 Accelerates Business Model Innovation and Digital Technological Transformation in the Hospitality Industry: A Focus on Restaurants in Baden–Wuerttemberg

Department of Business Administration, Heilbronn University of Applied Sciences, Max-Planck-Strasse 39, Heilbronn 74081, Germany

E-mail Address: daniela.ludin@hs-heilbronn.de

Corresponding author.

Search for more papers by this author

Markus Holler

Researcher, International Institute for Empirical Social Economy (INIFES), Stadtbergen/Leitershofen, Germany

Search for more papers by this author

Wanja Wellbrock

Department of Business Administration, Heilbronn University of Applied Sciences, Max-Planck-Strasse 39, Heilbronn 74081, Germany

Search for more papers by this author

, and

Erika Mueller

Department of Business Administration, Heilbronn University of Applied Sciences, Max-Planck-Strasse 39, Heilbronn 74081, Germany

Search for more papers by this author

https://doi.org/10.1142/S0219877022420020Cited by:7 (Source: Crossref)

Abstract

The gastronomy sector was one of the industries most fundamentally affected by the COVID-19 pandemic restrictions and the subsequent disruption of demand. Entrepreneurs were challenged to secure their survival. This study aims to analyze how COVID-19 has accelerated digital technologies in the hospitality industry. The study assumes that due to lockdowns successful restaurants in Baden–Wuerttemberg have developed new digital business models. Data for the quantitative study were collected through a survey among randomly selected restaurants carried out between December 2020 and February 2021. A cluster analysis is used to identify different types of restaurants concerning their propensity to innovate and their success. Results of the study show that the level of digitization is one important factor regarding the range of entrepreneurial success.

Keywords:

References

Aktaş-Polat, S. and Polat, S. (2020) A theoretical analysis of food meaning in anthropology and sociology. Tourism, 68, 3: 278–293. Crossref, Google Scholar
António, N. and Rita, P. (2021) COVID-19: The catalyst for digital transformation in the hospitality industry?. Tourism and Management Studies, 17, 2: 41–46. Crossref, Google Scholar
Backhaus, K. et al. (2000) Multivariate Analysemethoden. Springer, Berlin. Crossref, Google Scholar
Baghiu, M. C. (2020) Analysis of business model innovation in post-COVID economy: Determinants for success.. Journal of Public Administration, Finance and Law, 17: 7–24. Google Scholar
Batat, W. (2021) How Michelin-starred chefs are being transformed into social bricoleurs? An online qualitative study of luxury foodservice during the pandemic crisis. Journal of Service Management, 32, 1: 87–99. Crossref, Google Scholar
Belanche, D. et al. (2020a) Robots or frontline employees? Exploring customers’ attributions of responsibility and stability after service failure or success. Journal of Service Management, 31, 2: 267–289. Crossref, Google Scholar
Belanche, D. et al. (2020b) Frontline robots in tourism and hospitality: Service enhancement or cost reduction? Electronic Markets, 31, 477–492. Crossref, Google Scholar
Bello, J. et al. (2020). Innovating from necessity: The business-building imperative in the current crisis. McKinsey Digital. Available at https://www.mckinsey.com/business-functions/mckinsey-digital/our-insights/innovating-from-necessity-the-business-building-imperative-in-the-current-crisis [accessed on 10 Jan 2021]. Google Scholar
Breier, M. (2021) The role of business model innovation in the hospitality industry during the COVID-19 crisis. International Journal of Hospitality Management, 92: 102723. Crossref, Google Scholar
Chien, G. C. L. and Law, R. (2003) The impact of the severe acute respiratory syndrome on hotels: A case study of Hong Kong. International Journal of Hospitality Management, 22, 3: 327–332. Crossref, Google Scholar
CRIF GmbH (2022). Insolvenzrisiko in der Gastronomie deutlich erhöht. Zahl der insolvenzgefährdeten Gastronomie-Unternehmen steigt in der Corona-Pandemie um 30,8 Prozent. Available at https://www.presseportal.de/pm/22285/5142960 [accessed on 13 Mar 2022]. Google Scholar
Doğan, S. (2020) Identifying the potential effects of Coronavirus prevention (COVID-19) on the restaurants/cafes and the consumer preferences after post-epidemic in Turkey. Turkish Studies, 15, 6: 415–432. Google Scholar
Dostal, J. M. (2020) Governing under pressure: German policy making during the coronavirus crisis. The Political Quarterly, 91, 3: 542–552. Crossref, Google Scholar
Franz, M. (2020) Treffpunkt Gaststätte — warum sich Kommunen stärker um ihre Kneipen und Restaurants kümmern sollten. Standort, 44, 2: 93–98. Crossref, Google Scholar
Gajic, T. et al. (2021) Creating brand confidence to gastronomic consumers through social networks — A report from Novi Sad. Journal of Place Management and Development, 14, 1: 32–42. Crossref, Google Scholar
Gaur, L. et al. (2021a) Capitalizing on big data and revolutionary 5G technology: Extracting and visualizing ratings and reviews of global chain hotels. Computers and Electrical Engineering, 95, 107374. Crossref, Google Scholar
Gaur, L. et al. (2021b) Role of artificial intelligence and robotics to foster the touchless travel during a pandemic: A review and research agenda. International Journal of Contemporary Hospitality Management, 33, 11: 4079–4098. Crossref, Google Scholar
Ginanneschi, M. (2020) The future of food after COVID-19 through the lens of anthropology. Journal of Agriculture, Food Systems, and Community Development, 9, 4: 157–159. Google Scholar
Hair, J. F. et al. (2019) Multivariate Data Analysis. Cengage Learning, Andover. Google Scholar
Henderson, J. C. and Ng, A. (2004) Responding to crisis: Severe acute respiratory syndrome (SARS) and hotels in Singapore. International Journal of Tourism Research, 6, 6: 411–419. Crossref, Google Scholar
Hennig, Ch. et al. (eds.) (2020) Handbook of Cluster Analysis. John Wiley & Sons, New York. Google Scholar
Hennig, Ch. (2016) Clustering strategy and method selection. Handbook of Cluster Analysis, eds. Hennig Ch. et al.. CRC Press, New York, pp. 703–730. Google Scholar
Huang, T.-C. et al. (2009) Innovative e-commerce model for food tourism products. International Journal of Tourism Research, 11, 6: 595–600. Crossref, Google Scholar
Jacoub, L. and El Hajjar, S. (2021) How do hotels in developing countries manage the impact of COVID-19? The case of Lebanese hotels. International Journal of Contemporary Hospitality Management, 33, 3: 929–948. Crossref, Google Scholar
Jiang, Y. and Wen, J. (2020). Effects of COVID-19 on hotel marketing and management: A perspective article. International Journal of Contemporary Hospitality Management, 32, 8: 2563–2573. Crossref, Google Scholar
Lee, C. et al. (2019) Creativity and innovation in the restaurant sector: Supply-side processes and barriers to implementation. Tourism Management Perspectives, 31: 54–62. Crossref, Google Scholar
Lupton, D. (2020) Special section on ‘sociology and the coronavirus (COVID-19) pandemic’. Health Sociology Review, 29, 2: 111–112. Crossref, Google Scholar
Madeira, A. et al. (2020) The impact of pandemic crisis on the restaurant business. Sustainability, 13, 1: 40–53. Crossref, Google Scholar
Mariani, M. M. et al. (2019) Online reviews: Differences by submission device.. Tourism Management, 70: 295–298. Crossref, Google Scholar
Martínez-Navalón, J.-G. (2021) How digitalisation is influencing traditional food restaurants in the management of their marketing strategies. Advanced Digital Marketing Strategies in a Data-Driven Era. Business Science Reference, India, pp. 211–225. Crossref, Google Scholar
Meneguel, C. R. D. A. et al. (2019) The role of a high-quality restaurant in stimulating the creation and development of gastronomy tourism.. International Journal of Hospitality Management, 83: 220–228. Crossref, Google Scholar
Moro, S. et al. (2019) Can we trace back hotel online reviews’ characteristics using gamification features?. International Journal of Information Management, 44: 88–95. Crossref, Google Scholar
Morrone, D. et al. (2021) Digitalisation in the hospitality industry: Motivations, effects and role of COVID-19. International Journal of Digital Culture and Electronic Tourism 33, 4: 257–270. Crossref, Google Scholar
Neisse, T. et al. (2021) Rapid responding to the COVID-19 crisis: Assessing the resilience in the German restaurant and bar industry. International Journal of Hospitality Management, 96: 102960. Crossref, Google Scholar
Okumus, O. et al. (2018) Food and gastronomy research in tourism and hospitality: A bibliometric analysis. International Journal of Hospitality Management, 73, 7: 64–74. Crossref, Google Scholar
Pillai, S. G. et al. (2021) COVID-19 and hospitality 5.0: Redefining hospitality operations. International Journal of Hospitality Management, 94: 102869. Crossref, Google Scholar
Priyono, A. et al. (2020) Identifying digital transformation paths in the business model of SMEs during the COVID-19 pandemic. Journal of Open Innovation: Technology, Market, and Complexity, 6, 4, 104. Crossref, Google Scholar
Reddy, V. (2020) More eyes on COVID-19: Perspectives from sociology, the social life of a virus. South African Journal of Science, 116, 7/8: 15. Crossref, Google Scholar
Richards, G. (2021) Evolving research perspectives on food and gastronomic experiences in tourism. International Journal of Contemporary Hospitality Management, 33, 3: 1037–1058. Crossref, Google Scholar
Rusu, M. (2020) Social distancing in the context of the COVID-19 pandemic. International Conference Knowledge-Based Organization, 26, 2: 333–341. Crossref, Google Scholar
Schaarschmidt, M. and Höber, B. (2017) Digital booking services: Comparing online with phone reservation services. Journal of Services Marketing, 31, 7: 704–719. Crossref, Google Scholar
Sokal, R. R. and Michenener, Ch. D. (1958) A statistical method for evaluating systematic relationships. University of Kansas Science Bulletin, 38-II, 22: 1409–1438. Google Scholar
Schumpeter, J. A. (1934) The Theory of Economic Development: An Inquiry Into Profits, Capital, Credit, Interest, and the Business Cycle. Harvard University Press, New Jersey. Google Scholar
Sharma, S. et al. (2020) Digital Health Innovation: Exploring Adoption of COVID-19 Digital Contact Tracing Apps. IEEE Transactions on Engineering Management, New York. Google Scholar
Sonuç, N. and İşçen, M. (2022) Digitalization in the tourism and hospitality industry: Perspectives of the supply and demand sides. Optimizing Digital Solutions for Hyper-Personalization in Tourism and Hospitality, IGI Global, Pennsylvania, pp. 40–63. Crossref, Google Scholar
Statistisches Bundesamt (2020). Corona-Krise trifft Gastronomie hart: Umsätze von März bis August 2020 sanken um 40,5% gegenüber Vorjahreszeitraum, Pressemitteilung Nr. N 067 vom 26. Oktober 2020, Wiesbaden. Available at https://www.destatis.de/DE/Presse/Pressemitteilungen/2021/03/PD21_N020_45213.html [accessed on 10 Jan 2021]. Google Scholar
Statistisches Bundesamt (2021). Gastgewerbe in der Corona-Krise: Umsätze seit Ausbruch der Pandemie um fast die Hälfte zurückgegangen, Pressemitteilung Nr. N 020 vom 22. März 2021, Wiesbaden. Available at https://www.destatis.de/DE/Presse/Pressemitteilungen/2020/10/PD20_N067_45.html [accessed on 15 May 2021]. Google Scholar
Tan, P. N. et al. (2019) Introduction to Data Mining. Pearson Education Limited, Harlow. Google Scholar
Toubes, D. et al. (2021) Changes in consumption patterns and tourist promotion after the COVID-19 pandemic. Journal of Theoretical and Applied Electronic Commerce Research, 16, 5: 1332–1352. Crossref, Google Scholar
Van Oorschot, S. (2021) Digitalisation and temporary agencies: Impact on the business model and internal organization. Research in Hospitality Management, 11, 3: 241–248. Crossref, Google Scholar
de Vasconcelos, R. B. et al. (2018) What’s the recipe to innovate? An analysis of the determinants of the degree of innovation in the gastronomy segment. International Journal of Innovation Management, 24, 1: 2050005. Link, Google Scholar
Wilkesmann, U. and Wilkesmann, M. (2020). (Spitzen-)Gastronomie in der Corona-Krise, Discussion papers des Zentrums für HochschulBildung Technische Universität Dortmund 01–2020. Available at http://zhb.tu-dortmund.de/Medien/Publikation/Wilkesmann/dp_2020_01_Wilkesmann_Wilkesmann.pdf [accessed on 13 March 2022]. Google Scholar
Wintermann, O. (2020) Perspektivische Auswirkungen der Corona-Pandemie auf die Wirtschaft und die Art des Arbeitens. Wirtschaftsdienst: Zeitschrift für Wirtschaftspolitik, 100, 9: 657–661. Crossref, Google Scholar
World Economic Forum (Ed.) (2018) The Global Competitiveness Report. Cologny, Geneva. Google Scholar
World Economic Forum (2020). Here’s what travelling could be like after COVID-19. Available at https://www.weforum.org/agenda/2020/05/this-is-what-travelling-will-be-like-after-COVID-19/ [accessed on 15 March 2022]. Google Scholar
Xiang, S. et al. (2021) The effect of COVID-19 pandemic on service sector sustainability and growth. Frontiers in Psychology, 12: 633597. Crossref, Google Scholar