You can now quickly and easily secure a loan for your business to help you get back on track towards growth.
The world will shut down in 2020 and separate businesses into essentials and non-essentials. To slow down the spread of the disease, the goal was to limit gatherings. The first restaurants to close were those in the food industry. Many never reopened.
Restaurating balance in the restaurant business will require more than just time, a stable economic environment, and dedicated customer service. Many are using alternative lenders to fund their recovery after an economic crisis.
Restaurants can reduce their recovery time through a variety of investments. Restaurants, in particular, need to adopt new technologies faster than ever before, especially with the post-pandemic economic climate.
It has never been simpler to get a loan for your business and return you on the road of growth.
The Pandemic and the Restaurant Industry
Restaurants were forced to shut down in-house dining due to public health restrictions or pay a fine. Some states had restrictions in place for months. As a result, more than 110.000 food establishments closed their doors permanently.
The cost of implementing social distancing, and purchasing PPE for employees was a new expense when restaurants reopened.
The restaurants were forced to look for other business opportunities in order to replace the lost sales due to the lack of tourists and commuters. Here are some other ways that the pandemic has affected restaurants:
- Sales mix: Over half of employees intend to remain remote after the pandemic. At least 70 percent of employers intend to comply with a hybrid working model. It means that fewer people will commute to work and there will be fewer lines at the office during the week.
- Geographical Disparities: The most common restrictions were to stay at home and a phased return. Rural communities preferred a much quicker return to normal.
- Digital evolution: Contactless services expanded during pandemic. Restaurants who adopted delivery apps recovered faster than those who stuck to traditional take-out.
- Value perception: Much has changed including consumer trends. Most consumers are looking for digital accessibility but also want meaningful experiences. Modern consumers expect a certain level of service when they visit a restaurant. Brands that focus on the perception of value are rewarded by loyal customers.
YoY Restaurant Trends
The National Restaurant Association reports that 2020 will see a drop of 24% in restaurants year-over-year (YoY). The pandemic’s impact was uneven. The bars were down by -65% year-on-year, and full-service restaurants around -30%.
Many restaurants are finding innovative ways to overcome financial challenges despite economic uncertainty. Some restaurants were able to stay afloat by using app-based delivery services during the social distancing period. These digitally-friendly strategies have led to an unanticipated growth in the industry between 2020 and 2021.
The National Restaurant Association, despite many being optimistic, confirmed a 11% YoY growth between 2020 and the year 2021. This number, while still lower than pre-pandemic numbers, is trending in a positive direction. The uneven recovery of the service sector is what is holding back a full recovery.
The Key to Recovery
Restaurants explored many different ways to recover and generate revenue from the pandemic. We are beginning to see unequal distribution of recovery. One thing is clear: investments in the right places lead to faster growth and recovery.
Here are some ideas on how to use a business loan in order to help your restaurant recover after the pandemic.
Update Operating Procedures & Adapt Business Models
Delivery services and social media are here to remain. Prior to the pandemic only a handful of major brands were using app-based ordering services and third-party deliveries. It’s now the norm. Taco Bell, a major fast food chain, anticipates that 50 percent of its post-pandemic orders will come from digital.
High-tech integrations are needed to provide customers with an app-based ordering system. Taco Bell, for example, had to develop an app capable of serving 7,000+ restaurants. Chick Fil-A uses digital tools to monitor the social media and identify food safety concerns.
This new capability requires business funding for new hardware and software. It also requires technical talent. Getting up to speed with digital transform can be key to your recovery after a pandemic.
A small-business loan for your restaurant will help you to invest in technology. Create an app for your restaurant to track customer engagement on social media, provide consumer insights, and service your customers.
Focus on Customer Loyalty
In the post-pandemic age, American consumers are technology-driven and connected. They prefer self-service, high-tech conveniences but also value an authentic connection.
Restaurants with a focus on authentic connections to niche groups will do better. It’s not enough to pay attention to long-standing customers. It’s important to recognize that today, the best restaurants are rewarded for their excellent service.
- Loyal Customer:Â Reward loyal customers through personalized messages and loyalty-based promotions.
- Wandering Customer: Formerly loyal customers who have stopped visiting may be spending money somewhere else. Retain them with just-in time, on-trend promotions.
- Fresh Catches:Everyone changed during the pandemic. Some people found themselves with a new brand and a new routine. You can keep the customers you gained during the pandemic by offering them a loyalty program.
- Potential Clients: As some of your existing customers switched to another brand during the pandemic there are many new customers you can attract. You can use AI integrations to streamline the next big idea for a return on investment.
You can use a small-business loan to reenergize your customer loyalty and business initiatives. Create an app to support your loyalty program.
The pandemic has hit the restaurant business hard. Even though the acute pandemic has ended, many restaurants still struggle to recover. But recovery is possible. Restaurants who invested in their business transformation are experiencing the fastest recovery.
Small Business Loans may be able to provide financial relief for restaurants. Alternative lenders provide fast funding with an easy application.
QuickBridge offers a loan to help your restaurant. Apply today! Cash funds can be deposited into your account as soon as the next business day. Take control of your investments and learn more about our financing solutions.
