Examining the future of the food and beverage industry

LOS ANGELES - Small businesses could soon be shuttering their doors as the result of the coronavirus pandemic, concerning entrepreneurs who are part of the fabric of our country.

Expo West is one of the largest food and beverage trade shows in the world and it’s held every March in Anaheim.

It features popular brands like Coca-Cola and Vita Coco, but it's also a chance for new businesses to show off their product. Unfortunately, Expo West was canceled due to the coronavirus

According to marketing consultant, Arthur Gallego, Expo West getting canceled was just the beginning of problems for small food and beverage businesses.

"They will not be able to stay afloat and they will have issues getting cash or funding," Gallego said "The longer we continue, the worse it gets."

He also said Disneyland's Main Street, U.S.A. will continue to suffer.

"Main Street is going to be a couple of blocks shorter. We are going to see fewer restaurants it pains me to say that," says Gallego.

He also predicts to-go orders will be a large part of their business.

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It may seem as though supermarkets are the only businesses benefiting from this pandemic. However, Gallego said that is not the case.

"Because of social distancing, grocery stores are actually doing less business overall. Traffic at Whole Foods is down 30 percent," he said.

During the pandemic, customers aren't spending time in the aisles to discover new brands.

"We are in and out of that grocery. We're not looking at shelves, exploring brands, you get what you need, you get out," Gallego explained.

The beauty industry is also taking a hit.

The mascara, the lipstick, and the face wash you love, are also being impacted.

"They are predicting that beauty sales across the board are going to be down 20 to 30 percent globally," Gallego added.

Businesses need to quickly shift to a primarily online presence. Gallego recommends creating a fan base through social media.

"For example, Flow Water. They shifted toward a heavy eCommerce push and developed a loyalty program."

Once small businesses make changes to how they sell, we as consumers have to change how we buy, if we want them to stay in business.

"If you have any chance to support a local business, do it. If you have a choice between buying your food at a big grocery store or a local grocery, go to the local grocery and give them your dollars."

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