As a Hospitality Business few do’s and don’ts during COVID-19
March 30th, 2020 / #hospitality, Blog, Clip member profile, COVID-19, Global Hospitality, Industry Insights, Mental Health, Uncategorized / None
The number one priority is keeping your staff safe
- Prepare enough hand sanitizers in your place of work, for kitchen staffs, or for delivery guys.
- Secure at least one thermo thermometer to detect fever. Make sure to take the temperature of all staff before they start work. If they have the slightest fever or show any signs of illness, they must stay home. Don’t risk it.
- The establishment must be thoroughly sanitised using bleach (ration 1:99) or disinfectant. All tables and chairs must be sprayed and wiped down (using disposable paper towels) every time a guest leaves and you prepare for the next seating.
- All staff must wash their hands with sanitising soap for 20 seconds before touching any food or drinks. Do stock up on enough hand lotion as hands tend to get dry after frequent washing.
Revenue generating strategies:
- Offer services or collaborate with other businesses to create opportunities to generate revenue
- If your business also have the ability to do consultancy work, it’s a good time to advertise your services now,. Find revenue streams which don’t require the physical presence of diners.
- Create small “paid” classes. People will have a lot more free time now, create small cooking or cocktail classes for a small fee preferably online
- Some of your talents may be revenue generating, you just don’t know it yet! If you have photography or video production skills, now is a good time to advertise your services to others who may need to promote their business.
- Start creating merchandise surrounding your business. If you’re a restaurant or bar, you can design T-shirts, caps or sell bartending/kitchen tools in your online shop.
- Vouchers: start selling vouchers for customers to dine in at a later date. Give your loyal customers a chance to help you out! This will help your cash flow and is a good way to get people back in the doors when everything returns to normality.
- Do crossovers with other small shops to create synergies. You may not have the marketing budget to advertise your product, but if you gather a couple of like-minded individuals, you can combine your efforts. A coffee shop can work together with a bakery for example.
- Clearance/fire sale! Sell all your second-hand glassware/kitchenware/plates/cutlery/ slow moving alcohol. Garage sell to raise some cash!
2) Cost saving strategies: cash flow and expenses
- Stop ordering in bulk. Cash flow is king, order as you go and see if your usual supplier can offer you a line of credit.
- Using your newly designed takeaway menu and use up all your slow moving items.
- Stop all projects requiring investment. Keep your cash flow for salary and rent.
- Ask your landlord for a rent deduction
- If you are switching over to only do deliveries, be mindful of electricity and water bills
- Enquire about business loans. During this time, the government will have initiatives subsidising financial institutes, allowing them to offer business loans with very little interest payment. Also the screening process will usually be expedited.
- Check with larger suppliers, to see if they can extend payment terms. We didn’t negotiate with smaller suppliers, as we know they need the money as much as we do.
Be mindful of the delivery company you use, some may take over 30% of your revenue for their delivery fees, therefore compare and choose the company that best fits your business. Encourage your customers to pick up delivery at the store, cutting our middle men fees
What to avoid
- Face to face meetings with staff. Whatever can be discussed via chat groups or phone/email, please do it. Avoid holding large meetings.
- Pressuring any staff who feels ill, of uncomfortable in coming to work.
- Immediately dismissing staff or put staff on no-paid leave. The most important thing is to have a motivated team to help your company ride this wave.
- Don’t rely on your usual suppliers to deliver on time, they are also facing the same situation as you. Show some sympathy to others in the business
- Don’t go against policies issued by the government, it’s not worth it for the long term.
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