Marketing plans everywhere have been thrown out the window. As everyone struggles to adjust to our new reality, changes must be made, and plans must continue. This holds true in every industry, restaurants included.
There’s a lot to be concerned about. Much of it is going to have a long-term impact on the stability of your restaurant’s continued success. From dealing with short-term payroll to paying creditors, nearly every aspect of operations has been (and will continue to be) impacted by this crisis. Here’s a few key issues to be aware of.
- Closures concerns and maintaining profitability. Restaurants are doing everything they can to keep cash flowing in. This means re-examining every aspect of how your restaurant does business. CNN reports that some restaurants are actually retrofitting themselves into grocery stores.
- Supply chain issues. Forbes reports that coronavirus has threatened the supply chain for the entire food service industry. Your restaurant needs to be aware of how issues in the supply chain will affect menu offerings, both short-term and long-term.
- The takeout and delivery transformation. This article from the Orlando Sentinel details several accounts from restaurant owners pouring their efforts into delivery in order to survive. I highly recommend the read. (And for a little more advice, click here to read five ways to drive takeout and delivery sales.)
These are unprecedented times and they need to be navigated with care. I can’t tell you when all of this is going to be over, but I can tell you that you’re going to want to be prepared. Whether you’ve suspended operations or you’re continuing takeout and delivery services, planning ahead will help to ensure your restaurant’s survival when normal operations resume. What you’re doing now will impact what happens when things go back to “normal.”
“I think that this is going to be maybe 20%, even 30% of small businesses could fail even in a good scenario,” said Karen Mills, former head of the Small Business Administration, via Yahoo Finance.
The situation looks even more dire for locally-based, independent restaurants. Restaurant analysts and operators, cited by the New York Times, believe that 75% of independent restaurants currently closed due to coronavirus will not survive.
A popular JP Morgan Chase report (referenced in this article from TheStreet) details that half of small businesses have the funds to survive for 27 days. Notably, restaurants have even less time, with the average establishment only having enough to last for 16 days.
So, what does all of this mean for you? If you’re a restaurant owner you may be wondering, “What exactly can I do? How can I be prepared?”
As I discussed in my most recent article for restaurant’s facing the coronavirus (5 Creative Ways To Promote Your Restaurant During Coronavirus), the silver lining of this crisis is the opportunity it presents restaurant brands to connect with new audiences and even strengthen loyalty with current customers.
Be Prepared With CoGoBuzz
When operations resume, we’re predicting a short-term rush of customers. It’s only natural that people are going to want to get out of the house. However, on a long-term basis, achieving previous customer levels may prove challenging.
With CoGoBuzz, we want to help. Our state-of-the-art digital marketing service can help your restaurant maintain a strong base of loyal customers, which will ultimately help your restaurant survive.
Our service directly promotes your services to customer mobile devices. Leveraging advanced WiFi, SMS, and Email solutions, CoGoBuzz promotes your restaurant both in-store and out. It comes packed with a fully digital, text-based loyalty program, allowing you to let your customers know what services you’re offering – all with just a simple text. Click here to learn more about CoGoBuzz.
Whether you’re one of our current customers, or you’re interested in joining the CoGoBuzz family, we’re committed to helping businesses affected by COVID-19.
For current customers, we’re providing free text message service, allowing you to send a link to order online, purchase gift cards, and/or notify customers of new hours.
For new customers, we’re offering our hardware at cost, donating our services, time, and covering shipping costs. Prepare for the future with CoGoWiFi Free to collect your customers’ phone numbers. There are no contracts or monthly fees, and we offer unlimited customer data storage.
Message from our CEO
“From pricing to packaging, our mission has always been to provide customers with unbeatable value. That’s why, in response to the coronavirus pandemic, we are seeking to provide the most aggressive offers to help suffering restaurants survive. We believe that half of small restaurants will fail in the year after operations return to normal. The restaurants that survive and thrive will be the ones that win loyalty and focus on bringing customers back over the following year.”
– Steve Gould, CEO
Has your restaurant been actively planning for the future? Let us know in the comments.