Restaurant Management During the COVID-19 Crisis

Restaurant Management

At Leal, we participated in a recent webinar organized by mipOS and the Bogotá Chamber of Commerce on strategic restaurant management during the coronavirus crisis. Several industry experts shared their experiences and recommendations during the session.

Speakers included Camilo Sarasti, Country Manager of the delivery platform iFood; Santiago Franco, Head of Sales and Prepared Foods at Rappi; Luis Carlos Mira, Sales Manager at Frubana, a supplier of fruits and vegetables for restaurants; Nicolás Galeano from Sanamente Gourmet, a food delivery service; and Jorge Rausch, owner of Criterión and other renowned restaurants in Colombia.

Here are some insights gathered from their discussions on how the restaurant sector can navigate this crisis.

Where to Invest Your Money

• Strengthen delivery services. Even after the quarantine ends, businesses will not return to full capacity, and consumer habits will have shifted. Having a reliable delivery service that meets your customers' needs is essential for ensuring their satisfaction.
• Invest in digital marketing. Even with limited cash flow, digital marketing is crucial. Start with minimal ad spending on social media and take advantage of segmentation tools. Utilize free online courses and resources to create the best advertising strategies for your restaurant.
• High-quality photos of your products. “We eat with our eyes.” Stand out from competitors with professional photos, especially for new customers. Pair these visuals with detailed descriptions to help customers imagine the flavors since in-person interactions with waitstaff are no longer an option.

How to Optimize What You Have

• Manage your cash flow. Clearly identify where you want to invest and the expected outcomes. Take your time, research thoroughly, and assess all possibilities.
• Reduce costs. Focus on making the most of your existing infrastructure and resources. Eliminate downtime, renegotiate cheaper rent if possible, and refine operational costs.
• Maximize your customer base. Loyal customers can keep your business afloat. Develop strategies to strengthen relationships and increase transactions with your existing customers.
• Inventory is money. Optimize your raw materials to minimize excess stock. Simplify your menu with fewer ingredients, introduce new dishes that repurpose existing items, eliminate slow-moving dishes, and create new consumption opportunities. Consider serving meals throughout the day, accommodating all customer types. For example, people are now eating lunch later and indulging in desserts more often.
• Review your pricing. While not ideal, reevaluating your prices to make them more competitive may be necessary during the crisis.
• Create new digital brands. Explore launching new brands without additional costs to expand your reach. This can help you attract more customers while optimizing your inventory and capacity.
• Foster strong supplier relationships. Suppliers should be your allies. Maintain transparent communication, especially if you face challenges meeting payments or terms. If a supplier raises prices unfairly, consider finding a new partner. The goal is to optimize all resources.

Additional Tips

• Replicate your restaurant experience. Ensure your food presentation for delivery mirrors what customers would experience on-site. Use high-quality packaging, preferably sealed and biodegradable, as this can appeal to customers who are often willing to pay more for such details.
• Ensure sanitary safety measures. Comply with all established health regulations for food preparation and delivery, and communicate these measures to your customers. There’s no such thing as too much caution—your customers want to trust you completely.
• Innovate and reinvent your business. Keep exploring ways to adapt and evolve your operations. Two ideas:some text
  • Share hidden kitchens with fellow restaurateurs.
  • Offer experiential deliveries, as Jorge Rausch plans to do, by sending ingredients instead of prepared dishes, allowing customers to create the meal themselves. This not only maintains your brand’s essence but also adds a personal touch to the customer experience.

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