First step to business survival during COVID-19
- June 2, 2020
- Food News
The coronavirus has hit hospitality hard. The first step to surviving this global challenge is to know where you stand — after all, there’s no point in making future plans if you don’t know where you’re starting from and what you have to work with.
Here’s what you need to know about looking at your business’s core assets and strengths, before you can pivot and adapt your business.
WHAT’S YOUR KITCHEN’S CAPACITY?
It’s no surprise that the bigger your kitchen’s capacity, the more money you can potentially make in food during COVID-19. So it’s important to know the maximum capacity your food operation can produce per day.
Even with the possibility of opening up seated dining areas in cafes and restaurants, many hospitality businesses aren’t sure it’s worth it. But what’s clear is people want convenience now more than ever, including meal deliveries and takeaways. It makes sense to know where you stand in regards to your total kitchen’s capacity for food service, with or without giving your customers a dine-in experience right away.
ARE YOU GETTING THE MOST OUT OF YOUR PHYSICAL ASSETS?
Assets can either save you money, make you money, or worse, cost you money. It’s important to know where you stand when it comes to your business’s physical assets so you can utilise them to their maximum potential. Some good questions to ask yourself include:
- Do you have big freezer storage? If so, how much?
- What’s your dry storage capacity?
- Do you have any specialised equipment, like a wood fire pizza oven?
- Are any of these assets suitable for the instant asset write-off scheme?
- Do you need the asset right now, or could you sell it or hire it out?
- How can you make this asset work harder for you?
WHAT CAN YOUR TEAM BRING TO THE TABLE?
Staff loyalty is just as important as customer loyalty, especially when it comes to getting through a crisis. You’re nothing without your team and they are one of your biggest assets right now.
How many staff are on your books currently? If you’ve managed to keep staff employed, now is a great time to know exactly what skills they have — not just the ones they use as part of their core duties, but what skills do they have outside of their role — think laterally and you may be able to leverage your people in other areas of your business.
Have you had to let some people go? Keep them in the loop with what’s happening, and consider how they could play a role in returning to work if that’s an option. You may need them back sooner than you think.
ARE YOU ACROSS YOUR KITCHEN’S IP?
If you haven’t already, now is the perfect time to audit your kitchen operations and to get a clear picture of where your kitchen really stands.
- What menu items are fully costed?
- Which items are your big-ticket money earners?
- Have you sourced every single ingredient on all your recipes?
- Have you got complete pantry lists in place?
- When was your last stocktake done and what stock do you have that needs to be used?
When you know exactly how much things cost, how much money things make, and what you have to work with, you’re in a great position to make empowered changes to reduce waste, streamline your menus, and boost profit margins.
HOW WOULD YOUR CUSTOMERS DESCRIBE YOUR BRAND?
Your brand is how your customers remember and experience your business. What makes your business unique? What do your regular patrons know you for? Is it a signature dish or a regular experience, like Tuesday quiz night?
Are you happy with what your customers think about your business? Or are there areas you want to work on? Now is a great time to start that process, as your brand perception will need to shift and evolve along with your business.
DO YOU HAVE A GOOD UNDERSTANDING ABOUT YOUR CUSTOMERS?
Customer loyalty is a powerful business asset. Who are your regular customers? What do they love about your venue and your food? What do they want to be buying right now?
Maintaining customer loyalty, especially during a crisis, will see your business survive during the challenging times and thrive again in the future. So it’s important to keep them top of mind as you pivot your business, and ensure what you do next is going to appeal to them.
WHO ARE YOUR PARTNERS AND CHAMPIONS?
Don’t discount the goodwill you’ve built over the years. Your promotional partners and business champions are an important asset. Who do you normally partner or collaborate with? Are they still operating? Can you still support each other?
Also think too about other businesses in the local community that are still operating, and how a new partnership could benefit you both.
This is an unprecedented crisis for the hospitality industry. Understanding where your business stands with IP, staff, customers, partners, brand and goodwill will put you in a powerful position to then work through how you pivot your business, and maximise revenue opportunities from all the assets you have at hand.
WE’RE HERE TO HELP
Our Foodie team are here to serve. Whether that’s sourcing new products, helping to re-cost your recipes to reduce your COGs or planning a whole, profitable condensed menu to reduce food wastage and boost your bottom line. Get in touch