How to survive a downturn in the restaurant business

How to survive a downturn in the restaurant business

The rapid spread of COVID-19 has thrown the hospitality industry, especially cafes, restaurants and bars, into a storm it most fears. Social distancing, restricted movement orders as well as lock-downs are keeping people home. With food delivery services eating into the margins of the industry, COVID-19 is the last thing it needs. For some, closure may not seem like a viable option but staying opened could have many serious consequences. If you are required to close, keep the long-term in focus to see you through. So, in this post, we’d like to share a list of things you can do to stay dry the best you can.

1. Embrace the reality

It’s here and it’ll be here for a while. The best thing you can do is to embrace this reality. When you do, it sets you free to think of creative ways to manage it with new expectations in place. When you don’t, you’ll be held ransom by the crisis as pre-crisis goals become a source of frustration than inspiration.

2. Keep reaching out to your target audience

It’s natural to immediately cut expenses in response to the crisis. There’s nothing wrong in being prudent. But you’ve got to be selective. Eliminating your marketing communication activities is not one of them. Your creativity will be put to the test as you’ve got to balance the books as well. But as a general guide, your communications should centre on showing empathy and support to the community as well as measures you’re taking to keep them safe and well.

3. Identify your best hours

Its unlikely customers will completely stay away if you’ve built a reputation for providing good food. Some will continue to patronise, albeit, there may be a change in their buying behaviour. For example, they may choose to take away or come when it’s less likely to be busy. Make note of these changes and adjust your operations accordingly. From there, you can take the necessary financial measures to manage the cost of operations.

The road ahead is bumpy. It’ll require both hands to be on the wheel. Connect with us to discuss budgeting steps you can take.