TyroCity

Discussion on: Dalle’s Business Strategy to ensure business doesn’t close

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DIPA_DHUNGANA

When the economy is doing poorly, people will opt for saving money and eating out less is one of the ways to do so. The economy downfall is something no business can control but what they can do is to change the strategies to sustain in such difficult times. The given scenario is challenging for any business and it is the time when the managers/leaders have to provide serious attention for working towards the strategies and ideas that will help them to reduce costs and increase revenue in order to prevent the business from closing down.

As the manger of a restaurant in Kathmandu, following strategies can be adopted to sustain and flourish the business during economic crisis:

Customizing Menu: If the menu is customized with less number of items served, it will reduce the areas of expenses. But customizing menu does not mean randomly removing the food items from the menu. For this, we can take survey from the customers and look back at the trend of items ordered. The items that are ordered less frequently like once or twice a month and those with the very less profit margin can be excluded. The highly ordered items with the reasonable profit for the restaurant should be kept in the menu. This will help to limit the costs, increase the speed of service delivery and helps in creating a niche market for the products we are offering.

Paying Attention Towards the Quality of Food: The main reason for people visiting the restaurant is for food. The ambience, behavior of staffs are important but if the food served is not as expected, they cannot help in retaining the customers. By limiting the number of items in the menu, we can focus on few dishes to be offered and this will make it easier to control quality and ensure hygiene in the dishes we serve through standardization. Offering hygienic food will help to flourish the business through word of mouth advertisement by the satisfied customers.

Redesigning the Marketing Strategy: In order to sustain in the competitive market, marketing is must. The use of social media is the easiest and one of the most effective means of marketing these days as it helps to reach a lot of people at once. As a manager, one needs to ensure active presence in social media and online market. The collaborative marketing strategy can also help in this. For example, collaborating with a gift shop and beauty salon and offering the customers with a gift and/or free coupon for some beauty treatment over the order of certain amount can help in flourishing the business of all the parties involved. Similarly providing certain percent discount to the ones who refer their family or friends on continuous basis is also an effective marketing tool. In addition to that, happy hours scheme can be included when the food and beverages are offered at cheaper rate during certain hours. It will help in reducing cost through mass preparation and increase revenue through higher number of customers.

Working on Cost Reduction Models: The elimination of middlemen through direct contact with the suppliers of raw and unfinished products, use of alternative and cheaper sources of energy for cooking and reduction in the cost in human resource through of job sharing help in the reducing the cost and maintaining sustainability of the business.

Supporting and Showing up in Local Events: The people who live nearby the restaurant are the major customers for any business. The restaurant can make itself visible for the people of the community by supporting and showing up at the events organized in the locality. The support should not be necessarily be in monetary terms. This way the company is fulfilling its part of corporate social responsibility and at the mean time making people obliged to give back to the restaurant for similar support in the future.