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How restaurants, fitness centers, and beauty salons can survive the coronavirus crisis

The coronavirus pandemic, the fall in oil prices, the growth in the value of currencies do not add optimism to business owners. Companies transfer offices to remote locations, rush to connect delivery services or launch online formats. No one was preparing for turbulence and market decline. This happened swiftly. But the sooner companies realize the depth of the problem, the sooner they will begin to rebuild. The most difficult thing now is for a local business that already feels a 30-50% drop in revenue. Among them are restaurants, fitness centers, beauty salons, which cannot transfer the staff to a remote location and fully provide online services. For them, in a new article, we give advice that will help save the business.

Negotiate your rental

For most establishments, renting is an overwhelming burden. Try to negotiate a rental vacation with a landlord, a rate cut, or other ways to defer payments. Already, there is information that the owners are ready for negotiations. After all, if the restaurant or beauty salon closes, it is not known when the next tenant will enter the premises. In difficult times, social responsibility and mutual assistance is beneficial to both parties. Discounts have already been granted to owners of the gastronomic space strEAT, food markets in Baltschug and Salaris. The telegram channel Sysoev FM shared useful links with readers: instructions on how to properly prepare for writing a letter to the lessee, and he also compiled a ready-made sample letter for the lessor.

Control bank loans

Many have loans taken for business development. Some businessmen took loans secured by their own property. If possible, repay them. If not, then start talking to banks about debt restructuring.

Go online

In a letter addressed to the Chairman of the Government of the Russian Federation Mikhail Mishustin, signed by representatives of the Federation of Restaurateurs and Hoteliers (FRIO), the public organization “Support of Russia” and the Chamber of Commerce and Industry (CCI), it says that the load of restaurants fell by 30–90%. If you have a restaurant, then connect to the delivery services and pack everything take away. Some restaurants offer food packages or convenience foods to prepare their specialties. Now you do not have a catering point, but a food production workshop. Delivery can be arranged independently by employees.

So have already done the “Northerners”, “Coffeemania”, Delicatessen, Tilda and dozens of other institutions. The Yandex.Food and Delivery Club services reported a twofold increase in applications for connecting to services and intend to launch an accelerated procedure. But this does not save them from the shaft of applications. Therefore, in-house delivery should be a priority.

For regular customers who continue to eat outside the home, consider deposit cards. This will allow to accumulate a small reserve of financial resources.

For fitness clubs, the introduction of online training is the only chance to keep loyal customers. You can stream, upload the schedule of online groups on the site and in social networks, send video tutorials by e-mail. Some clubs now offer club cards with big discounts, but the main work is to keep regular customers. Of the interesting know-how is the provision of equipment for rent. The Velobeat project went that way. The network of silent studios offers to rent a simulator for 5,000 rubles per week. Training will be posted on social networks for free.

The most difficult for beauty salons to go online. We can recommend selling more cosmetics for home care and running beauty marathons (for example, gymnastics for the face) to keep regular customers.

Review company staff

The team now requires maximum involvement and commitment. Therefore, first of all, part with those who sit out their pants for a salary. With them you will not save the business. Bet on those who are willing to work overtime, who offer non-standard solutions and are ready to implement them. Discuss with staff the working conditions for the period of emergency measures and sign additional agreements to employment contracts governing the relations of the parties.

Optimize your marketing budget

If earlier you could allow marketing “according to your senses”, then it is time to consider the effectiveness of each advertising channel. Everything should be transparent. Do you know how many calls the context or advertising on social networks brought? And what percentage of calls turned into a record? And how many customers did you end up with? The size of the average check? How many new customers are becoming regular? Calculate LTV, customer acquisition costs, direct costs. Understand after what visit the client begins to pay off your advertising campaign. And turn off ad channels that drain your budget. There is no expensive or cheap channel. It is effective or not. And remember that after the turbulence ends, those who manage to attract customers first will survive. And your marketing should be ready for this.

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