Ready to restart

Jane Newick, managing director of the Wordbox (www.thewordbox.com) - a specialist food and drink PR and marketing agency - provides some marketing and promotional advice on re-opening after lockdown.

ALL CHANGE

The last three months have forced many businesses to introduce new revenue streams just to keep the cash coming in through lockdown.

Some have become neighbourhood grocery stores selling everyday essentials such as flour, eggs and milk alongside take out coffees and pastries. Some have taken their business online for home delivered items ranging from the full menu to ready prepared meals, equipment and branded merchandise.

Suddenly, operators have had to become retailers, e-commerce experts or to learn fast food skills just to survive the downturn.

Now, as we start to emerge from lockdown, the priority for operators is to develop a viable and sustainable business model that accommodates the ‘new normal’, whatever shape that may end up taking.

WHAT DO WE KNOW ABOUT THE POST COVID-19 LANDSCAPE?

According to recent YouGov research, the coronavirus outbreak is likely to impact leisure spending patterns for some time and about a third of Brits (32%) expect to spend more on having meals out than they did before lockdown, which is certainly some more positive news.

We also know that there is likely be an increase in the ‘staycation’ which is encouraging for anyone with a business in a tourist hotspot. And, with the increase in home working, which is set to continue for a good while yet, the local restaurant or bar could well take on a renewed importance as a social hub within the community. However, it is too early to make too many assumptions when so much is unknown, but businesses that stay flexible and open to new ways of doing things will be best placed to adapt to new opportunities as they arise.

Here are some areas to focus on as we move forward.

RE-ASSESS AND REFINE YOUR PRODUCT OFFER

Time is a luxury that we do not always have when we are ‘hands on’ with running a restaurant. However, the last few months have been an opportunity to take stock, to review and to make any changes ready for when the business re-opens.

A new menu could well be needed for the summer season, but there could also be a need to source new lines which are more suited to eating on the run, or outside? Perhaps your existing menu needs refining to cater for customers with different needs?

All menu changes will need to be made with the overarching aim of protecting profit margins which is obviously a priority.

Some of the revenue streams that evolved during lockdown may be worth continuing, so it’s useful to assess these to see if they should become a regular feature; remembering, of course, the need to stay ‘on brand’ and not to stray too far from the core proposition.

VALUE FOR MONEY

Consumers have missed socialising with friends and colleagues and are keen to

get back to as normal a life as possible. And previous recessions have shown that consumers think of a restaurant visit as an ‘affordable luxury’ which they are happy to treat themselves to, which is also encouraging.

Having said that, with all the economic turmoil ahead, consumers will be nervous about parting with their cash and so value for money will be critical, although it’s not necessarily about discounting, but the whole experience, and that includes the food, coffee, the service and the environment. All will become increasingly important. Looking at ways to inject a higher perceived value into core items can help up sell, adding value to customers whilst increasing revenues for you. For example, using a bundle pricing strategy to include pasta, a drink and dessert, will satisfy demand for a price deal which will appeal to savvy shoppers post lockdown.

Many suppliers, too, are offering all sorts of incentives to encourage sales, including price discounts, free merchandising and alternative payment terms and these may be worth investigating to ease the burden whilst encouraging a positive cashflow.

QUALITY NEVER GOES OUT OF FASHION

With all the Zoom tutorials going on over lockdown, consumers have had chance to hone their cooking skills, but not necessarily to the standard they get to enjoy in a restaurant. Therefore, quality is even more important than ever, and customers will expect to buy as least as good as they can make at home.

In light of this, it might be beneficial to take advantage of suppliers’ ‘added value’ services such as free training (many offer online tutorials as well as on-site training) to brush up on core areas such as barista skills, food prep, customer service, etc, which may have become rusty over lockdown when staff have been furloughed. This will help ensure you can deliver the quality that customers are looking for once you re-open.

REWARDING LOYALTY

If your competitors went quiet over lockdown, then there may be an opportunity for you to grab some market share. If you move quickly, that is.

All the branded chains use loyalty reward schemes for a reason – they work. So, if you do not have a system in place then now is the perfect time to introduce one. They are a great way to thank your existing customers whilst attracting new business, so look at ways to double up on points for a few weeks once you re-open to entice people in. Ok, there will be cost associated with this, but customers will love you for it!

BUILDING TRUST

It will be important to communicate all the social distancing measures that you are putting in place so that customers feel confident in paying you a visit.

As well as in premises signage, use social media and customer emails to talk about the steps you have introduced to help keep them safe. Also look at some of the new apps which allow customers to order and pay ahead, and collect at a kiosk or hatch at your premises so that queuing times and contact are minimal as these options are gaining popularity and may encourage additional, as well as repeat, sales.

REMAIN ENGAGED WITH CUSTOMERS

There was a 50% increase in social media use during lockdown, so there is no doubt that your customers are online and active.

Keep them engaged with regular news updates by using eye-catching images to attract interest and help tell the story. Collaborate with other businesses, local groups, influencers etc., to help amplify your message and drum up interest.

Try and plan your social media content a month in advance with scope to add in more reactive content as news unfolds and things change.

If you use one of the many social media planning tools and organise a whole month’s worth of content at once, then you will not be faced with the headache of “what am I going to post about today?” when you open up every morning.

Remember that all your competitors will be shouting about the fact they are open too, so you will need to think creatively to make yourself heard over all the noise.

KEEP THE COMMUNITY SPIRIT FLOWING

There is no doubt that we have become more community-focused through Covid and all the signs are that this will continue.

If you supported a local charity or good cause over the last few months then be mindful of how highly this is regarded generally and the positive impact it will have had on you, your employees and the local community too, and for that reason try and continue the involvement if you can post-lockdown.