A down economy simply means retail spending is down, below the normal for a particular period. The current down economy can be directly attributed to the COVID-19 pandemic. This has forced the closure of many businesses, cost thousands of people their jobs, and reduced the ability of people to spend money.
The result is less money is spent, more businesses struggle, and the cycle continues. At some point, the cycle will reach the bottom and the stimulus provided by the government will encourage consumer spending. This will allow businesses to make a profit, ultimately boosting hiring and inflating the economy again!
The trick to surviving the down economy is to spot the opportunities and prepare for the upturn. It’s easier than you think:
Table of Contents
Invest
It can sound peculiar but a down economy is the best time to invest in your business. You may not have the money coming in right now but you will in the future. This means you can afford to indulge in finance, providing it will help your business.
For example, now is a great time to replace industrial food machinery, this will help you to deal with the upturn.
Increase Your Space
You need to make your food business as attractive as possible. That means ensuring you offer takeaway options and eat-in. To ensure people are comfortable eating at your premises you’ll want to increase the distances between tables and encourage outdoor eating.
It’s easy to add tables to your outdoor space. Consider adding a few coverings and even patio heaters and you’ll be creating an outside environment that can be used all year round. That’s the best possible way to boost revenue.
Create New Dishes
The reduced level of customers during a down economy gives you the opportunity to experiment with different dishes. It’s a great way to improve the options on your menu and even expand the menu.
However, you can take this a step further and use your new dishes to bring in customers. Wok out what it cost to make the dish and then do a ‘cost night’. Tell customers that they are getting the dishes at cost price because they are new and you want honest feedback.
Place just one or two options on the menu and then cook for the customers that arrive. You’ll find plenty of people happy to get a cheap meal. You won’t make a profit but you will get honest feedback and start building customer loyalty.
You’ll find, after doing this a few times, that specific dishes bring customers back. In short, you’ll be building a loyal fan base that will pay properly for your dishes, boosting your trade even during a downturn.
Use Social Media
If you need an extra boost then use social media. Pictures of your dishes, honest comments, and open invitations can have a dramatic effect on the number of customers you get.
It’s worth a try because new customers tend to become loyal customers. That means you can flourish because you have quality food, even in a recession.
