How to survive in COVID-19 times
Covid-19 is here to stay. It is changing the routines and consumption habits of communities in the US. We have no idea how long it will last, but I assume life is not going to be like before. Functioning ordinances for business are just around the corner; states, counties, and cities will restrict them according to the evolution of the pandemic.
Some restaurants in Denver and the metropolitan area have felt the need to close. Others, in a more hostile approach, have limited their operation and reduced personnel; only those who understand the importance of generating operation changes and the need to adapt to the new consumption habits of a quarantined society are surviving.
The picture is not uncertain for everyone. The famous collaborative economy of Uber Eats, Grubhub and Doordash is a medicine. It has become an unexpected balm for the sector and a temporary tranquilizer that moves in its own way their cash registers. These mobile apps are increasing their activity in the COVID-19 era; they are a respite for mothers and fathers who are tired of cooking day after day and relief for restaurant owners.
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The increase in requests to access the apps, both from end consumers and from restaurants, has put to test the ability of these technology companies to supply demand. Others are the challenges that are arising, such as the lack of personnel to deliver orders and the high percentage that businesses must pay to the owners of the apps.
However, the restaurateurs fully know their business plan and know that the margin of utility in the operation ranges from 20% to 30%; for them, agreeing to collaborate with these applications means 3 things. First: To raise prices to be able to work with them because the commission for using these technologies is also around 30%. Second: Limiting the menu based on the understanding that not all dishes produce profit once in the cloud. Third: To lower the profit margin to be able to be competitive among other restaurants that rub shoulders in the platforms.
The medicine is then a contraindicated relief with strong side-effects, but it is not the only remedy.
The true lifesavers
Nowadays it is easy to create virtual restaurants tailored to each need, with the possibility of including those products that are desired, the versatility of allowing the consumer to choose between having the food sent to their homes or taking it from the point of sale, and, the difference of 100% of the utility staying in the business, without paying commissions.
The idea of creating e-commerce as a distribution channel faces new challenges for a restaurant. In Folks Marketing we suggest working on the presentation and delivery of the final product, trying to generate an excellent user experience and guaranteeing that the food always arrives hot and in good condition. Waiters who lost their jobs can change their tasks for home delivery. We are sure they will do it better than the deliverers from Uber Eats, etc. And managers have an additional task, to communicate to frequent customers the option of ordering online to enjoy food from the tranquility of their home.
At Folks Marketing we would like to share the success story of our client Taco River, who through its e-commerce is managing to keep its restaurants healthy. This restaurant chain suffers from quarantine like all others. Currently, they only provide the take out service at the point of sale but they are aware of the importance of providing home service. The number of online orders has increased notably after the arrival of the Covid-19 and local restrictions. Rodrigo Santoyo (General Manager for Taco River) assures – “The challenge is to guarantee the final consumer that the whole process: taking orders, preparation and delivery is done under strict rules of health and hygiene”.
Folks Marketing is a 360 ° communication agency that will help you implement an online restaurant that is light, easy to navigate and adaptable to any device (Smartphones, tablets or computers). We can design effective communication strategies aimed to achieve that current clients of Uber Eats, Grubhub and Doordash prefer to buy in their new e-commerce.
The time has come to innovate and make changes in the business model to withstand the crisis that the pandemic brings forcing us to change our consumption habits. If you want to venture into digital marketing and create your restaurant online, you can write to us at email@example.com or call us at (720) 550 3772.
Folks Marketing / Smart Interactions!