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A final tweet which caught my eye. Again, a few days ago. So this one is more. This one is less generally about business and entrepreneurship and this is more specifically about the current situation with covet and the something which is like particular interesting for us, because we we’re very interested in the cloud kitchens business and we have a course all about starting cloud kitchens and things like that. So this one particular caught my eye. A guy on Twitter tweeted out, Northern Hemisphere restaurants have 90 days to develop a delivery business, outdoor anything will crater. Come October. And this obviously stood out because it’s quite sort of a stock end of the world doom kind of tweet. It was in about the restaurant kind of things. But there are lots of moving parts here. And I thought it was particularly stark and particular interesting. And the reason being is because. When we’re recording this podcast, a few of the restrictions, things like that that have been going on to do with the lockdown around combatives, been starting to lift in the UK, pubs and restaurants have been reopening with much stricter rules. But, you know, they are reopening and so they are serving customers again. But these are very low margin businesses that have it like supply chains and delivery of the product and things like that have been fairly well optimised. And so all the new restrictions already mean that they are there already. Slim margins are. If not gone, then or already gone negative. But we’re currently in the middle of summer. And so, so practical steps like having outside seating and take takeaways where you can take your sort of drinks of food and go and sit in the park and eat there and all that kind of things that are currently viable. But, you know, with the weather in the northern hemisphere being what it is, we’re in the next two, three months. We’re moving into autumn and then winter. And a lot of those mitigations just completely go out the window. So even if businesses are currently sort of staggering along with, like government support and things like that. Fundamentally, they need if they need to be already working on different sources of revenue or different delivery models for their products because. If you know, depending poll where things go, this is very dangerous time for them and they should be taking the worst case scenario and they should be investing in other business models and other ways of doing business. Otherwise, there’s just got to be sort of like a mass loss of a particular lot of independent restaurants and people in the food industry. But, you know, even large change we’re seeing already is cutting back. Obviously, we’ve done a bunch of work in this sort of cloud kitchen business. What’s your kind of take on this? And what’s your what’s your thoughts about that, those sort of tweaks of the business model that they can go through?

Yeah. Share with you their vision on their need for restaurants to add up. I think that certainly they are most likely already doing delivery, but probably don’t have a whole business model. As you said, maybe they just do delivery from their premises.

Taking orders by phone. I’m not sure how it they online ordering works.

They’re full for like, you know, obsolete, like smaller restaurants, like like family owned family Betances.

So, yeah, they would certainly need to get advice on the look out for options. I mean, there are several start-ups and apps that are trying to facilitate these for them.

You have all these online ordering apps. We mentioned your course. Well, you can go cheque the course to our website. This just, of course, is not to promote our course. So it’s just to give our opinion known on the industry. So also, I was checking I was watching Bill Gates, they bloated.

They they did a new interview with him. And that, I think was last week or so. So. Very controversial. All their things being mentioned about him. But he certainly is a guy who has a lot of information and insights on what’s going on on what can happen. So he was suggesting listen to us, but probably could be extrapolated to other countries that in the fall things will get worse, that there is certainly weather like heat, humidity factor that slowed down day virus in the northern hemisphere and actually accelerated probably in the south and Mystere like Brazil and South Africa and so on, with exception. So if Australia, New Zealand, who were very diligent to keep it down since inception. But yeah. So with that said, you’re seeing second wave things bang already in summer. So, yeah, it’s although there are some promising advances, some on new tools to fight back then. The virus treatments or some promising vaccines. It will take time. So and governments are just pushing to a limit on how much funding they can pumping into it. And also, as you said, OK, there. So I’m I’m hesitating, numb if they dare. Restaurants should go online only. Or also increase the prices. So that’s a fairly straightforward one. Just increase the prices. Of course, it’s easy to do. But if you if you if it’s not coordinated, then you just increase your prices versus the other restaurants in your area. You want clients on ice that people have a lot of money to go out anyway. So you should be careful with that. But I think I wouldn’t be surprised if that happens. That’s my take on it. So even their supply chains have been affected. So probably the you know, the raw ingredients for restaurants will go up and therefore their prices won’t increase their margins per say. But if their costs went up 10 percent, maybe they can increase it like not 10 percent, but 24 percent. We’ll see what happens on that. But certainly at the very worst case, they will need to it to target to have at least 50 percent of their sales online and improve the margins. That’s that’s for sure.

And moving forward, not for these for just us as a business model for the restaurants or bars. Yeah. All that dine out industry. So I stopped going to work long term without being affected by many other factors. It could be not even a virus, but just changing spending behaviour from people.

Yeah, yeah, yeah. So I if you just go through the sort of.

Thought processes of if I had a restaurant, how would I sort of try to approach this problem? I think you’ve got to look at it as a system. Right. And any system has inputs, sort of processes and outputs and.

You want to be trying to.

Limit the inputs, minimise the costs, etc. on your inputs. Make your processes as efficient as possible. The ones which are sort of more expensive or take too much time. And you won’t be maximising your output. So if I was a Russian, I would. What I’d be trying to do is the first thing I do is I would massively deistic decrease the scope of my money. I would go and I would pick like maybe eight to 10 best selling, the easiest to produce, the cheapest raw material, quickest things that could be produced in batches. So say, for example, you know, with some of your costs are going to be like chefs and bromet raw ingredients like it. Can you find some sort of subset of your menu, which is popular but can be created on a batch basis? You get your chef in for one day crates of the stuff and you can then sell out over the course the next few days. So you’re sort of limiting your your cost base. And then secondarily, you want to be trying to find new ways of selling the same kind of mails or food or products to people outside of the traditional times in which they’re going to be purchasing them.

So normally, if you’re a restaurant, then you’re serving food for, like the evening meal.

Can you find some part of your menu, which means that people are going to want to order it for lunch or they can want to order it for breakfast? Or are they going to order it like on a snack basis? Can you sell it? Is there some sort of, like, side dish that you could sell in a bulk pack which people would want to buy so they can snack on it during the week? Well, something like that, you know, expands the sort of food places, the sort of the food events that you’re catering for. And then thirdly, I try to look for up sales. Are there sort of high margin, classically high margin products that you can bundle in to increase the sort of like basket size of the order you’re getting and also make sure that high, high margin products. So, for example, soft drinks are a classic one alcohol. If you’ve got an alcohol licence, you know, can you bundle that in as well? All their packaged goods of some description that you can sort of put alongside it. And as part of your checkout process, the sales process, it’s like actively trying to sell people into the grace of bundles, try and actively upset people into the, you know, the mail deals and things like that. Any chance you get to sort of like try and up sell those? Those are the kind of levers I’d be trying to pull on. You any thoughts along those lines?

Yeah, I agree. It kind of percent is something we also covered somehow ending in our kitchens trend. And I would also add maybe that you should think again from the same starting from the same point being, if I were to be a restaurant owner, what would I do with this situation? Probably you should reinvent yourself. But from a practical point of view, I would say just you will need to learn or find someone who knows about e-commerce and just learn a lot about it, not only about the food industry, but about how to sell online. I think broadly that there could be opportunities of selling. I mean, people will be buying online, not only ordering meals or foods online to restaurants, but they want to do their groceries online. And not I mean, some supermarkets where that we have seen in there at the peak of COPD, they were not delivering very well. They were just flooded with orders. They couldn’t cope with all of that. Probably they were not that efficient. So there are opportunities like niche opportunities. So if you are a steak restaurant and you have you know, you import or you have a direct contact with that, you have the best steak in your town or in your area. So so your position may be too great. A simple site to sell steak only just for cooking at home.

But, you know, then there are the just the options that people will like on them.

They will struggle maybe more speciality. Let’s say speciality foods could be like steak, could be casinos, Chinese, Indian, whatever, but yet that they’re special either ingredients or foods per say that are more special that you won’t find in your local supermarket if you’ve got any will be it will rank fairly well because your great website just about that. So then it’s like multiproduct or monochromatic. Or maybe you have two probes.

And then from a marketing point of view, you become an expert on that. Your audience will be very targeted because it’s just people who like those kinds of means.

You are more likely to have repetition because they eat that every week and they are likely to cook at home anyway. So if you can, you can even carve out subscription model for that. So it’s more. Is this smart? An e-commerce approach on finding those niches, then deliver those.

It should be fairly straightforward to deliver those foods. Yeah, it’s more about this, the customer acquisition online for those products. So it won’t be a ready meal. You will be selling off products. So it’s more about customer decision that how much can you charge them? I’m sure that they vaughters or. Wholesalers are by definition, they don’t sell directly to consumer. So they goes through the supermarkets. Those are one of the main hubs. But supermarket you in online supermarkets like Ocado and UK, for example, they didn’t deliver as expected. And we saw huge. I mean, they make up sites for sure. I mean, not a lot, but they can’t serve everyone just on time. And they’re not definitely not in their speciality business. So you can differentiate deadweight. Yeah. Because I will be careful on on doing focussing on delivery only for your restaurant without a proper plan of your meals, as you said, you you would need to really pick what people order online because people have a different behaviour when O’Daniel online versus food versus going out. So it’s usually Sinja.

I mean, from the stats we had seen in the Dark Ages, the best sellers were pizza, some hamburgers, some maybe some Chinese food or Indian. But they were not necessarily was some healthy categories, although it was growing made for need. You need to understand how they behave. I’m not sure if they are going to order your delicious pasta or if they may prefer to go out because of experience. So you keep keep an eye on what they order online and find your niches. I would say so. So become expert in newcomers and find your niche and probably just sell the products down so that they’re ready meal.

Yes.

Hundred centigrade. OK. We’ll rough out there. Thank you very much for listening. We’ll be back next week with some more nuggets of knowledge. In the meantime, please do cheque out our YouTube channel, which is where we post this and or other podcasts. You can search for net workers in the YouTube search bar or you’ll find the link in the show notes of this particular podcast. If you’re interested in a deeper dive into all things entrepreneurial, including more detailed information, help mentorship courses, as we mentioned, please, to cheque out our Web site, which is at Networkers DOKO. See you next time.

Thank you. Bye.

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