Will Your Restaurant Survive Article Pic

Restaurant Owners…, Will They Survive?

UsMenTalkBy UsMenTalkApril 4, 20204 Minutes

This year started off great, unemployment was at its lowest, the economy was at its highest and restaurants were busy with customers.

But 12 weeks later, the opposite of what I just said is now true.  Welcome Covid-19. Cities and states are now in quarantine mode. Restaurants are ordered closed to all “in store” dining. Delivery and pickup are the only possibilities for a restaurant owner to stay alive.  Many cannot and will not survive.

As I write this short piece, the other company I’m affiliated with, www.yyppee.com, is getting requests from many restaurant owners to quickly build them their own Online Ordering Systems.

Having spoken to many restaurant owners over the past 2 weeks, it’s clear that the normal way of doing business is over, at least for the near term.

Social distancing and Covid-19 are here to stay for a while. What does all this mean for restaurant owners?

You must all review how you did business before. Do you have a list of all your customers? Can you reach them through their email or mobile devices whenever you want? If the answer is no, that’s a problem that must be corrected later. What is the revenue breakdown between dine-in and pick-up and delivery? Dine-in will be greatly affected on a go forward basis due to social distancing requests and expectations. What’s the age demographic of your top 30% of your customer base? Is it millennials or senior citizens? This will also affect who comes into your restaurant to eat more often and who may or may not order online.

Your expenses and total overhead were based upon your pre-Covid-19 Pandemic experience.  When things begin to return, you cannot pick up where you left off. Expense reduction is a must. Marketing to get your customers back will also be at an all-time high. What you market will need to be adjusted too. Covid-19 along with other health related issues will need to be factored in. Re-staffing will be problematic for many. Operating efficiencies will take time to return to pre- Covid-19 levels as well. You should expect that your average customer will come back over a longer period of time as most people will be financially impacted in a negative way.

Lastly…, can you last? Do you have the personal and business reserves necessary to sustain until whenever? As you sit and think about it, does it even make sense at a certain point?

In closing, take a few minutes in between worry, to address some of the questions I presented herein. It might help you make some decisions that will benefit you the most. Also, if you have questions for other restaurant owners, ask them here as we have some 1000+ that will read and respond to you as well.

My best wishes to everyone during this difficult time.