According to a Gulf News report, as many as 50 percent of Dubai’s 11,000+ registered food and beverage outlets are unlikely to remain in business over the short term. Though, as of May 27th, the UAE government has officially opened hotels, restaurants, and cafes, which means it’s a critical moment for these ventures and their survival. 

Even as the country makes a return to normalcy, residents are still cautious. Restrictions remain on the elderly and young children, and dining out still requires abiding by strict guidelines and social distancing. Additionally, masks and gloves work as further deterrents to relaxed dining. The truth is that food businesses that have reopened under these strict limitations will likely barely generate enough income to cover overhead costs. 

So, what is to be done? Akhilesh Bahl is a hospitality and food and beverage business consultant who has lived and worked in the UAE for over 15 years. He weighs in on how the sector can survive the crisis. 

Business Mitigation

“With the lockdown and restrictions on movement instituted early on during the spread of the virus, the restaurant industry was hit hard due to a lack of footfalls,” says Akhilesh. “This caused revenue erosion across all genres of the restaurant value chain, where some concepts suffered greater than others, depending on their historical formats and business models,” he adds. 

Even with protocols in place, Akhilesh anticipates that it will be a long time before we return to what was our pre-corona normal or, rather, a new normal that emerges. He urges that the only way to survive these extremely challenging times is to employ alternative measures to attract clientele.

“F&B outlets need to reach out and let customers know the terms under which they are operating. Are they serving dine in, delivery and take away? Moreover, to engage patrons, restaurants and cafes need to actively create delivery-specific menus that generate business,” he adds. 

In addition to amending menus and offering more choice, Akhilesh also advises that food outlets position their pricing value to appeal to customers across a wider base. 

“Be ethical and transparent with all employees, suppliers, landlords and clients, and try and transact directly with patrons. This will not only drive engagement but will also let customers invest emotionally in your narrative,” he adds. 

Customer Engagement

At a time when there is little to no footfall within premises, Akhilesh suggests reaching out to clients.

“Call your customers and connect directly through all modes of communication. Use social media, WhatsApp, text messages, email, Instagram, Facebook Messenger and LinkedIn to tell patrons what you are offering and how you can get it across to them. Go the extra mile and offer to deliver,” Akhilesh advises. “Building confidence amongst your customers will help them see you as more than a dine-in operation,” he adds.

Akhilesh also recommends participating in community forums to directly interact with customers and audiences.

Social Distancing

Even with restrictions lifting, there is an overwhelming urge to be cautious. “Realistically, from now until the end of the year, people will be wary when dining out. Those who do, will critically observe social distancing measures in effect. It will take little to lose customer patronage, so businesses need to be extra vigilant,” Akhilesh notes. 

For any restaurant to draw patrons, Akhilesh feels that F&B outlets will need to strictly comply with government regulations. These include clearly marked seating plans, planned workforce, appropriate working hours and stringent hygiene, sanitation and cleanliness measures. 

“There need to be regular temperature checks of employees and customers, and verification of supply chains for ingredients. Even your suppliers need to commit to hygiene and safety rules,” he says. 

Additionally, he advises that all team members be trained on health measures, as well as observe strict adherence to social distancing protocols. 

“If we can get the public and private sectors to comply with these practices, we can find ways to navigate new business models to keep the economic activity ongoing,” he says. “Most of this year will be just about surviving. We predict a recovery in the F&B sector no earlier than the first quarter of 2021. The ability of food businesses to adapt and remodel will determine if they will survive to see the next year,” he concludes. 

Whether you’re a hospitality or F&B business looking for risk management consulting, business consulting or financial advisory consultants, a strategic, mapped out plan to reopen builds customer confidence.
Click www.jupiterbusinessmentors.com to avail the experience of our certified business coaches for advice.