With the COVID19, I’m sure you are doing whatever it takes to keep your business going through these unprecedented times and more importantly keep you, your family and staff safe.
Take a deep breath. You are doing well.
Covid19 will last a few months (if we all do the right thing), and it will pass. I'm basing this on the latest Mckinsey report. Governments will be coming to the rescue in all countries because this downturn is more harsh than the global financial crisis in 2008/09. What does a rescue mean?
According to Hamish Douglass ( who is Australia's version of Warren Buffet), stimulus packages in the vicinity of ~30% of GDP globally. In Australia, this will be equivalent to $500B and in the US, we are looking at $6T.
In the meantime, we are seeing a massive shock to consumption behaviour, the stock market – and your business! Especially for quick service retail and dining environments.
From a long term plant-based perspective, Covid19 will benefit the growth of plant-based, especially in China and South East Asia.
There are 3 steps to come out stronger from what we are seeing:
1 - Preserve as much cash as you can
2 - Adapt
3 - Double down - invest in positioning your business for growth.
1 - Preserve as Much Cash As You Can
The Chinese Word For Crisis is the same as Opportunity
2 - Adapt - See the Opportunity
Quick Service Retail
People love your product – but they need to access it. Australia Post deliveries are not slowing, Sumo Salad has seen a 23% rise in delivered meals in the last few weeks. Many offices are sending staff home – so this will depend on your location. (Current as of 16/03/2020)
II) Incentivise people to buy from you directly – and dedicate a staff member for deliveries, less than 5kms. (You have to do the numbers to test these assumptions). See example from Eden in Bondi. The better platforms charge less than 5% of the order like Mobi2Go
III) Or boost your online offering, either through existing channels (Ubereats/Menulog/Deliveroo/Doordash) – This is not ideal because of the hefty charge by these companies. If you change your operation to almost a 'dark kitchen' - this could work.
It’s worth using until you ready your business for direct online (ii)
IV) Wholesale offering – Create products in bulk and allow them to purchase this from your store – or drop off. This works well for you fan who is stuck in the home office.
V) Collaborative partnerships with other businesses – You have a fan base, and so does the other business. Together you can create a special evening or pick up take away event. There are many success stories with savoury and sweet companies coming together. In Sydney, see Treat Dreams and I Should Be Souvlaki. In Melbourne, @smithandeli (plant-based delicatessen) are collaborating with a Northside Fruit and Veg.
Consumer Packaged Goods without the major outlets
Wholesale Businesses (selling through cafes)
For Chefs & Specialised Service
3 - Double Down & Invest in Your Business Growth.
Plant-based food will accelerate further after covid19.
From the hundreds of plant-based business owners I have spoken to, what they have asked for is time to review the business as a whole. For those businesses, #COVID19 is a blessing in disguise.
Once you have done steps 1 & 2, you are ready to look at your business with fresh eyes.
Where does your business sit in the 5 stages of the business life cycle.
Do you have new opportunities available to you in new channels?
The following video goes through the three step process of where and how you would like to continue your business. The colour is dark, but the content is gold! 😊
We trust this has been helpful. If you have anything more to add, please contact me at bob [at]betcatalyst.com.au to update this page. We'll be updating this page regularly as a guide.
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