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The COVID-19 pandemic wrought havoc on various industries around the world. Some that were most affected by it were automobiles, airlines, leisure services, oil drilling, and restaurants.
Restaurants were severely affected by the pandemic. Statistics show that it cost more than 3.1 million people their jobs and led to the closure of more than 110,000 eateries permanently.
The situation was even worse for small restaurants, with their limited workforce, capital, and resources. Trade group estimates that small hotel businesses reported more than 225 billion USD in losses in 2020.
Needless to say, the road to recovery is long and fraught with challenges. Several professional financial institutions have offered advice, help, and suggestions on ways and means to bring the industry back on track.
The most worrying part about the whole thing was the already weakened state of restaurants even before the impact of the pandemic. For example, most reported minor profit margins, uninformed customers, and limited help from external agencies.
However, if you are the owner of a small business restaurant, here are some valuable tips and learn about the various challenges facing the industry.
Planning a future strategy
Most expert restaurateurs believe a solid future strategy is crucial in helping restaurants worldwide. One of these involves increasing the profit margins, as eateries are often left with little cash in the bank to withstand a service disruption extending to a few days.
The lack of a contingency plan throws small restaurants into turmoil because of the minor profit margins. Restaurants also need to persuade the public to accept the rising prices of food. It is vital to educate them about the reasons behind the price increase and how several factors cause the increase.
Providing community meals (free of charge) to frontline workers and others who need them is another factor to help restaurants improve their financial situation.
Making operations more efficient
No restaurant can hope to recover from a significant financial crisis unless they improve the efficiency of their everyday operations. That involves focusing on three factors: convenience, safety, and quality.
Convenience
Convenience refers to making the process of food ordering easier for the customer. Creating a seamless online ordering process is helpful, as it presents various options while browsing online or in an app.
You might even consider throwing in catchy phrases, such as family meals and takeout specials, instantly attracting the user's attention.
Safety
People who visit your restaurant after the pandemic are highly conscious of hygienic practices and standards. Implementing cashless payment methods will assure them that safety is your priority. If that seems unfeasible, you could try wiping their credit cards after every wipe.
Quality
It refers to the quality of your food and the customers' interactions with your business. They should be impressed by your online media presence, range of services, etc., every time they contact you, either remotely or in person.
Marketing
You need to market your business to the customer in a way that appeals to the customers. There are two ways of doing this: ensuring the stability of your delivery orders and using your social media to reach out to customers.
Some steps to encourage stability are offering delivery promotions, explaining the possible waiting time, hiring front-of-house (FOH) staff as delivery drivers, and utilizing third-party app representatives.
An effective marketing tactic is showcasing your safety measures on social media, including sanitization of surfaces, seating arrangements, availability of hand sanitizers, menu updates, and signs to enforce social distancing.
These are some tips you can use to ensure the recovery of your restaurants. The industry faces multiple challenges, from safety concerns to low-profit margins. But planning a future strategy, prioritizing quality, and efficient marketing are some ways to tackle your restaurant's financial challenges.