Until the whole world is free from Covid-19 virus, there will be measures put in place to protect against the next wave of infections. Being a global economy and so interconnected to many countries, Singapore will always be at risk of a sudden outbreak due to imported cases. Recently(1st May 2020), we have seen Singapore’s community spread reduced to 10-20 per day. With almost 1 month of the circuit breaker to go, with any luck, we may not extend it anymore and businesses can begin to open up. Here are some scenarios that are likely to happen and how it will affect your F&B businesses.
1. Social distancing in restaurants to be commonplace
Tables will likely to continue to be placed 1-2 meters apart which reduces seating capacity in restaurants by up to 50%. If your restaurant previously seats 40 pax, now with only 20 pax capacity, your dine-in revenue will be drastically reduced. Customers who come to your store will no doubt be disappointed that they are unable to get a seat. Others when they see the long queue will change their mind and dine elsewhere.
Possible strategies:
Encourage customers to takeaway, better yet, let them pre-order before collecting
Serve customers in their homes & offices through delivery/takeaway to sidestep the limited seating capacity
Redesign your menu to focus on dishes that are faster to prepare and consume
Give customers the option to reserve seats in advance(ideally with a deposit to reduce no-shows)
Change your floor plans to remove excess tables and make more space. Consider the most efficient path for customers to order and pay
Social distancing will reduce restaurant seating capacity to 50% or less
2. More restrictions & checks in public places and malls
Crowded places will be managed with checkpoints and registration to control the number of people. Footfall will be reduced as consumers avoid malls and other public places. If your business previously depends heavily on foot traffic, you will have to change your business model to reach people in their homes & offices.
Possible strategies:
Reach out to your customers through social media or advertising your business online
Focus on fulfilling orders through delivery to homes & offices
Use delivery platforms as a marketing channel and redirect customers to order directly from your own online storefront to reduce commissions
Source for sustainable packaging materials to build a positive environmental brand image
3. Some offices will continue to implement partial flexi-place arrangement
After more than 1 month of working from home, some businesses will continue to allow employees to work from home for some of the days. Business owners may continue to split their employees into different teams and stagger office work to reduce risk. Others may see the benefits of telecommuting as an alternative to doing business. The number of walk-in customers is likely to be reduced as a portion of diners will continue to be at home. However, demand for home delivery will see an increase.
Possible strategies:
Test which of your dishes deliver well and streamline your menu to offer the ones that do.
Implement contactless pick-up for drivers to collect from your restaurant instead of entering the premises
Be creative with your offerings, for example, ready-to-cook dishes for customers to finish up final steps at home with their families
Consider your profit margin if you are only using 3rd party delivery platforms
Use your POS’s CRM (customer relationship management) to collect your customer’s info to entice them back again
4. Corporate orders & catering business on ice
As large scale events and gatherings will continue to be postponed due to the high-risk nature of the infection, this significant portion of F&B spending may not resume to pre-COVID 19 levels in the short term. If your business relies heavily on such corporate orders, you may need to consider becoming more consumer-friendly and think about reaching out to a large number of individual customers. Your ability to reach new consumers becomes the key to survival.
Possible strategies:
Switch your catering trays for eco-friendly takeaway boxes. Create brand-specific branding on all boxes
Repurpose your catering delivery vans & drivers to deliver to homes
Create a new consumer-facing virtual brand that is easier to connect with
Acquire new digital marketing capabilities in your team. They should know how to create designs, run advertisements, create new and engaging content
Think about designing the customer experience from seeing your brand, understanding your offerings, making a decision, ordering from you, anticipating your arrival and consuming your food
5. Consumers will tighten their wallets
With a gloomy economy on the horizon and uncertain job security, consumers are more likely to be budget conscious and watch their spending. A strong brand and unique experience may help to mitigate the impact. In most cases, the willingness to pay will reduce in most consumers and they will seek out more value for money options.
Possible strategies:
Reduce your menu to eliminate dishes that have low order rate(% of orders) and low-profit margin. Use your POS data to analyze and identify which dishes to keep and remove.
Use your inventory system to identify your high food costs and wastage dishes. Remove or redesign them.
Take steps to evaluate your suppliers and purchasing frequency to ensure quality & freshness of produce.
Create new dining experiences to engage different senses. Eg, video of the dish prepared in a special manner
Deliver unexpected service surprises to create memorable talking points. Eg. free side dish just because a customer has a beautiful smile
6. Customers will be more sensitive to hygiene
A heightened sense of hygiene will persist in the mind as consumers start to head out. Messy or untidy premises will give an impression there is a lack of care and impact consumer’s perception of your brand. Customers will also judge your food handling staff if they do not wear their gloves or masks properly.
Possible strategies:
Ensure sufficient gloves, face mask and shields for all staff. They should also be worn properly eg. Face mask to cover nose at all times
Keep all boxes and ingredients hidden and out of sight
Ensure hand sanitizer and wipes are readily available without having to ask for it
Give customers a way to keep their mask clean while dining at your restaurant. Little things like these matters
Clean and sanitize tables after every diner. Customers waiting in the queue will scrutinize how that is done
Give customers a way to keep their mask clean while dining at your restaurant. Little things like these matters
“It is not the strongest of the species that survives, nor the most intelligent, but the one most responsive to change” - Charles Darwin
The world is not going to look the same after the circuit breaker is over. What you do now to adapt and prepare will determine if your business will recover strongly or struggle for the rest of the year. Many of iCHEF’s F&B customers are affected by these measures and we are here to help.
iCHEF POS - Cloud based POS system with smart data analytics and reporting capabilities. Up to 96% grant support and additional 4 months free during circuit breaker.
FoodAcorn - F&B online ordering system to bring your food business online. Start selling to more customers from S$59/mth
iCHEF F&B Consultancy (NEW) - Design & build a virtual brand to reach new customers. Leverage technology and data to connect online to offline. Get up to 90% grant and salary support. Contact us to find out more
