4 things we learnt from Covid-19:
As we wave goodbye to 2020 and welcome 2021, hoping that this year will be kinder to all of us in the hospitality industry, while we recover from all the challenges 2020 had showered us, here is what we have learnt from Covid-19 from a F&B perspective.
- Size does matter (literally)
In times of such pandemic and nationwide lockdown, the size of the restaurant really does matter. With the rental each month depending on the size of the restaurant space, many restauranteurs come to realize that you do not really need such a big space. It doesn’t matter if the restaurant is 500sqft or 3,000sqft, we cannot receive walk-in in times of pandemic.
In fact, the covid-19 situation and circuit breaker allow f&b operators operating from the “ghost kitchen or cloud kitchen” to thrive. If you have not heard about ghost kitchen, they are small delivery-only kitchen setups ranging from 12sq to 16sqft, and allowing f&b brands to prepare the food as usual and tap on the available food delivery platforms to reach out to their customers. The low overhead cost, rental cost and setup cost has put them on the competitive edge as compared to the traditional brick and mortar restaurants.
- You need more than your physical presence
If you have read about marketing, you will know the 4Ps of marketing are very important. And it is especially important for a restaurant to choose the right Place; in this case, the location of the restaurant.
During the pre covid-19 days, it is indeed important to choose a good physical location, and to have a good physical brand presence where there is high footfall. However, when covid-19 happens, we learnt that it is beyond just the physical presence.
Digital presence was equally (if not, more) important during the circuit breaker days. Without the digital presence, any brands could possibly suffer from low delivery orders and very few walk-ins. And thankfully for social media and Singaporeans’ love for food, facebook groups such as Singapore Restaurant Rescue and Hawkers United are formed to help restaurants and hawkers remind consumers that they are still operating and taking orders.
Yet, this is not enough to consistently maintain the brand presence in this digital age. Understanding the importance of digital marketing and the struggles of many f&b owners, Enterprise Singapore is funding up to 90% of approved digital marketing course, curated just for the f&b industry. (Drop us an email if you are keen to find out more!)
- Singaporeans really love to queue
It is really no secret that queuing has become Singaporeans’ favourite past time. Remember the snaking queue at any of the bubble tea shops on the eve of circuit breaker? Yup, and it is no surprise that queuing continued into circuit breaker - from the supermarket queues to virtual queues to snatch a piece of those croissant or cakes.
Unexpected brands and home businesses flourished through the circuit breaker by leveraging on digital marketing (again), online sales and delivery services. One classic example is the home baker who gotten over 700 wait list which led pivoted into her own production central kitchen. And there were also cafes releasing orders for cakes and pastries, and sold out within 10 minutes. Singaporeans really never stopped queuing, even in times of semi lockdown.
- Restauranteurs need to be creative and adapt fast to situation
Unless you have sufficient surplus and cash flow to ride the waves of circuit breaker, restauranteurs will need to be adaptive and creative to cope with the ever-changing situations.
We started seeing bars offering beers (by the litres) for takeaway and delivery; cocktail kit or cocktail-to-go; steamboat parcels; workshops via zoom; online cooking classes etc. And every f&b owners have also started using the power of social media and online presences to reach their customers.
The circuit breaker also serves as a platform to promote entrepreneurship and home-based businesses. New brands were popping up every two days, with the good ones filling the slots fast and building the wait list.
While Singapore has entered Phase Three and slowly easing measures so that Singaporeans can get used to the new norms, the food and beverage industry has a lot to recover from the storm 2020 has brought upon us.
We salute all our fellow f&b operators who have survived 2020 and wish that 2021 would be a better year for all of us.
If you are interested in joining the food & beverage industry, or thinking to start something in this exciting industry, feel free to chat with us or write to us at enquiry@kitchensq.com.
Stay safe, and stay healthy!