Category Archives: Helpful Hints

Crisitunity

I think it’s Foodie Friday although it’s fairly easy to lose track when most days are pretty much the same these days as we all ride out the current pandemic crisis. While many businesses have been damaged and many people hurt, the restaurant business has been particularly hard hit. Most places have ordered them not to serve anything other than take-out. Order volume is way down. Many of the staff have been laid off or fired altogether. Couple that with the fact that the food business is generally a low-margin business to begin with and you have a dire situation.

Think for a minute how other industries are affected by the restaurant situation. Suppliers now face uncertainty. Landlords might not get paid. If they own the building that’s one thing but if they owe a lender payments, they’re in trouble as well. But as Lisa points out to Homer, a crisis is also an opportunity.



One thing I’ve noticed is that there is suddenly a much great awareness of the interconnectivity of all the constituencies of every business, restaurant and otherwise. It all starts with customers, of course, but also shows how critical everyone is and how many people touch a business. Need supplies? What if the delivery person can’t work and there aren’t replacements. What if the supply chain is interrupted due to hoarding? I’m sure you’ve seen that as stores began to see hoarding they imposed limits on the numbers of what could be bought, not to limit their sales but to make sure they were serving as many people as possible. I call it equity, you can call it fairness or whatever you like.


I’ve got friends who work in the food business. Some of them have been laid off. Others continue to work, taking the risk each day that they might become ill to help their restaurant survive during the crisis. They can’t work from home. When this is over, think about that as you’re wondering whether to tip the extra 5%.

I’m hopeful that other businesses will think more about equity. Will that mean higher wages, better working conditions, and increased benefits? I don’t know but I know we won’t be going back to the world as it was. I’m sure many great people are rethinking their choice of employer if not their career choices. I’m quite sure that many employers won’t have the same staff back, resulting in the loss of institutional memory, increased hiring and training costs, and even more lost time. What are they doing about that? Using the crisis to put the “new” world in the context of equity is a start. You can’t pretend nothing has changed. How are you going to?

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Filed under Helpful Hints, Reality checks, Thinking Aloud

Last Night’s Lesson

It’s Foodie Friday. We went out for a bite last night to one of the places that’s in the usual rotation. On most Thursday nights the bar is crowded and there’s often a wait to grab a table. Last night we pretty much had the bar to ourselves and there were tables available without any delay.

My buddy Tina the bartender said that business wasn’t great and I think we all know it’s due to the fear of the coronavirus. It’s hard to keep a safe distance from folks in a crowded bar or when tables are close together. While you expect your servers and cooks to have clean hands, it’s not a great time to find out otherwise. Apparently, my little microcosm isn’t much different from what’s been going on around the country and, I suspect, around the world.

What a number of food businesses (this one included) are doing is a great lesson for those of us in other businesses with respect to how to behave when the proverbial pandemic hits the fan. I’ve seen Facebook posts and received several emails from places I patronize and most of them have the same message. First, they aren’t minimizing the situation with any kind of casual joking (“Hey! Come on out and play! It’s just a little flu!”). Second, they all talk about both their normal cleaning process as well as the enhanced measures they’re taking during the crisis. This includes more frequent cleaning using higher-strength disinfectants and retraining of staff.

It’s the big guys too. Starbucks, which markets itself as a gathering spot (not something we’re being encouraged to do these days) has actually taken to limiting seating, spacing seats further apart, and even closed a store temporarily after a worker fell ill. The message is loud and clear: we place our customers and their health above the short-term profit hit we’ll take. Well, duh, people. Dead customers don’t buy things, so helping to prevent the spread of this virus is smart business no matter the cost.

Some places have amped up their delivery service. I’ve heard of other places that will bring your food to the curb so you don’t have to get out of your car if they don’t deliver. Who knows – maybe those services will become a normal part of their business going forward – we all know how delivery services’ menu of menus has grown over the last year or so. Acknowledging that not everyone is comfortable or able to go out for dinner at this time and not attempting to persuade them otherwise is being supportive and adult. That’s what any of our businesses need to be.

We overtipped last night (50%). Why? These are our friends and they might be hurting for the next month or so. If you get out, do the same. Buy a gift card at your favorite place, restaurant or otherwise, and use it down the road when you go back. We’re all in this together, right?

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Filed under food, Helpful Hints, What's Going On

South Bye Bye

These are odd times indeed and it’s when we’re under stress that our true nature often shows. That same is true of organizations and that’s often to their detriment because that true nature is often anti-customer. There is an excellent example of this in what’s going on with the SXSW Festival.

If you’re unfamiliar with the South By Southwest festival, or South By as it’s commonly known, this is how it describes itself:

The event has changed in many surprising and meaningful ways since 1987, but at its core, SXSW remains a tool for creative people to develop their careers by bringing together people from around the globe to meet, learn and share ideas.

It’s sort of a spring break for the tech, marketing, film, and music communities and it attracts thousands of people who attend for the connections they might make, for the music they’ll hear, and for the learnings they’ll take away. It’s become a huge deal and passes to the event cost about $1,400 per person for mid-priced interactive badges that last the length of the 9-day festival. It’s an investment, obviously, and that doesn’t include all the spending by agencies and sponsors.

Here is the problem. They canceled the festival over concerns about the spread of the coronavirus and won’t refund attendees and vendors. They’re offering to defer your ticket to 2021, 2022, or 2023, but they won’t give you back the money. Is this in accordance with their stated policies? Yes, it is, but as we began the piece, these are odd times and maybe, just maybe, it’s time for this business to have another think about alienating their customers.

Many agencies have been cutting back their spending as the festival has become too big and unwieldy. I suspect this might anger those who haven’t been cutting back. Airlines have been refunding tickets and Airbnb recently announced that some coronavirus-related cancellations will qualify for refunds under its “extenuating circumstances” policy.  Many of the attendees are small business people looking to promote themselves or artists they represent. Tying up this money for at least a year can be a big hit, one that just might put them out of business by the next festival.

On top of all this, the festival company fired 30% of its employees. Insurance won’t cover enough to maintain the full-time staff where it was.

Should a cancellation something that should have been in the disaster plan? You would think so. This didn’t happen overnight. Companies and artists began pulling out of the festival weeks ago. Should the decisions that seem to have been taken about how to handle the aftermath of a cancellation been more consumer and business partner-friendly? Based on the extreme negative responses in both sectors, definitely so. Will SXSW ever recover from this? Time will tell, but the lessons we can learn will be the same. Be customer-centric. The short-term pain leads to long-term gain most of the time.

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Filed under Consulting, Helpful Hints, Huh?, What's Going On