The outbreak of the Covid-19 pandemic has disrupted every aspect of human mobility and socio-economic norms of people around the world It has rapidly changed daily behaviors. For our Author’s Note for this commentary content: Adapt or die in the F&B sector. Let’s talk about shifts in consumer behavior, the pitfalls of resisting change, and why there’s still a silver lining despite everything.
The shift in consumer behavior
“It seems we are massively entering a quarantine of consumption where we will learn how to be happy just with a simple dress, rediscovering old favourites we own, reading a forgotten book and cooking up a storm to make life beautiful.” – Trend Forecaster Li Edelkoort.
We’re putting non-essential consumer products off our list as we become more conscious about our spending. The shift in value over premium will heavily be present in most people’s mindsets.
Post-pandemic, consumers are going to be more discerning of how and what they consume. The need for a practical and pragmatic approach to entice their purchasing behavior is very important. Not to mention these consumers buying power might be weakened due to downsizing of companies, people are holding tightly to their cash-on-hand to anticipate another global scare, and consuming or buying restaurant food is perceived as non-essential compared to grocery shopping.
The struggle in the F&B industry
The food industry has been turned upside down, that so obvious. They’ve coped by boxing their food for delivery. We salute those who are keeping things afloat and are pushing very hard to keep their staffs employed
Ways to adapt
Now how do you transform? Re-visualize everything. This is a rousing time to grow and evolve. Think first how to manage “The Change” in both business and consumer climate. The money will come second to this. If you’re not able to do well with the first step, then you won’t be able to get gains. Profit will be the consequence of how you act now.
Forget who you are as a restaurant. Let go of your notion to what you were before your hip dimly lit Philips bulbs, cozy interiors, and instagrammable food presentations.
- Interactive concepts will be a thing. Do-it-yourself home kits those are ready-to-cook. Food that gives a semblance of what a home-cooked meal should be.
- Customizable meal kits for those re-heatable food packs that will not take away the integrity of your dish.
Channeling of payments
- Go cashless. If you can practice cashless transactions please do so. This is for the sake of everyone. Less physical interaction with tangible elements the less hassle for everyone to disinfect.
- Use pre-paid e-vouchers that can be easily be given as a gift
Food safety and cleanliness
the top priority for many consumers will be maintaining health and minimizing the risk of illness. Looking at the long-term outlook, this awareness of hygiene and cleanliness will likely permeate consumers’ mindsets and brands can respond by becoming transparent about their safety procedures.
Margins and Price points
These are trying times. People will hold on to their hard-earned money more tightly than usual. We all know that we all have to maintain our own profit margins, but also do consider the buying capability of your target consumers. Find the right balance between giving value and profit.
Up your Online Presence
Now thinking about all the things that we need to take actions on – the question is how do you let your customer know these forefront initiatives? One key thing is having a solid Marketing Communication Plan. Consumers are looking for brands that share transparency to the product, as well as reflect their own personal values.
WHY IS DIGITAL MARKETING CRUCIAL?
People in The Philippines spend an average of 10 hours a day on the internet and While a global average of almost seven hours of screen time a day. Ponder on that information for a while. Think about the vast amount of opportunity to have that conversation with your future customers. They are there and looking for a good narrative to watch or listen to.
Fair gameplay for everybody
Digital marketing is more affordable, flexible, and engaging than traditional marketing methods. Even small and mid-sized companies can create compelling campaigns, talk to the same market, and have thoughtful engagements. It is not anymore reserved for large corporations and bigger brands.
If you want to deep dive further into then read up on our How to’s of the Digital Marketing Spectrum.
Welcome to the Free world
According to one of FGDO’s favorite HBO series, West World; “This is the new world, and in this world, you can be whoever the fuck you want.” —Maeve Millay,
For the micro-entrepreneurs, It is your time to expand your capabilities. Go beyond restaurant concepts. You are now not limited by your capability to shell out large capital to put up a shop. Spread your wings and fly into new heights. Be wary also, although you’re entering the free world remember that these bigger and established restaurants will battle you out for the market share. Do well with your food quality, taste, and channeling. We’re always rooting for the new entrants in the market!
For the tenure restaurant owners or if you have a brick & mortar shop, stop fixating at your price point. Expand and diversify your market segments. You already have that solid following your challenge now is how to retain and engage those patrons.
This pandemic has opened a lot of doors for everyone. Go digital or die.
With every problem, there’s always a solution. Seek opportunities not just to create money, but also provide value to your customers.
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