How F&B Businesses Can Survive Lengthy COVID-19 Lockdown

The F&B industry is undergoing hardship ever since India was struck by COVID-19.

When the country enters the lengthy lockdown, business owners suddenly found themselves in need to pay rent, salaries, and absorb losses, all while barely making enough revenue to survive.

There is no such thing as a one-size-fit-all answer for all F&B businesses so owners must find the best solutions by themselves. However, here are a few suggestions they might find useful:

You

The current situation is like being on an airplane in an emergency. You have to put on your own air mask before you can help anybody else. Ask yourself how long you and your family can go on without an income from your business.

Money

Making a spreadsheet on your financial situation in the next six months with your fixed costs and losses. Find out the different scenarios of when the lockdown ends to prepare for several business outcomes.

Possible situations vary, ranging from digging your own savings to come to loans to bail you out. Much like when you assess an investment, your personal choice counts, not others.

When it comes to government relief, only what was granted is important, hold discussion with your investors, partners, and chartered accountant.

People

Employees

Your decision regarding the F&B business will have an impact on all of your employees so talk to them, especially the ones who have been with you for long. Ask for their thoughts and opinions. If you all can come to an agreement that is good as the thought of a shared purpose can help bring out the best of everyone.

Consider this an opportunity to gain the trust and loyalty of your employees.

Landlord

Your landlords have their own problems to deal with. This is a hard time for everyone so it is advisable to hold a friendly conversation before going down to a formal, business-like one.

Tell them your plans, whether you want to keep the business going or shut down completely.

Suppliers

Make sure there are enough communications between you and them. Try to pay them as soon as possible and prioritize small vendors that could not hold for long.

Negotiations

There are two types of payments to consider for F&B businesses  one is reduced payment with which you can negotiate the amount payable when the lockdown has not been lifted completely. The other one is deferred payment which payments are partially or completely postponed for some reason.

Even when the lockdown is lifted completely, people may remain cautious for a while before they start going to eateries again. So things might get worse before they get better.

With your landlords, you can try negotiating for a 6-month reduced rent before resume to the former amount post-COVID.

Post-Covid

Before the country is locked down, many have hoarded supply enough for months so they might have some left in the house. However, as humans are social animals, you can count on their desire to go out and socialize with dining out.

After COVID-19 struck, investors might have a keen eye on capital expenditure and cash flow. Operators might think harder about renting or purchasing.

Restaurants and eateries which have never considered delivery may finally come down to it and ramp up technology and logistics accordingly.

COVID-19 has created an opportunity for F&B businesses to reconsider their way of operating. In this trying time, some opportunities emerge. For example, EatToday is a platform to help businesses connect with users by listing and rating restaurants and eateries. Explore different choices and see which one is suitable for you.

Change is inevitable so adapt.

>>> EatToday: SMEs' Savior In The Time Of COVID-19 Lockdown