The Importance of Dynamic Customer Service in a COVID-19 Food & Beverage Industry
KEY INSIGHT
Consciously or unconsciously, food and beverage owners are shifting their business model from static to dynamic. A shift from ‘going from your home to the venue’ to ‘the venue coming to your home,’ as well as a shift from ‘a food delivery service’ to ‘an at home experience.’
Not only can you use technology and digital transformation, but you can revisit the menu, understand customer behaviours and cut unnecessary costs to create the successful formula for your business.
Shifting the perspective: your core values matter.
From static to dynamic: How to overcome challenges through improving the customer experience
For the last couple of months, the majority of owners in the food and beverage industry have been working in “survival mode.” Either consciously or unconsciously, they are shifting their business model from static to dynamic.
Since the opening of the first restaurants and grocery stores, the food and beverage industry has been a static business. Customers would leave their homes and drive miles to go to their favourite restaurant to enjoy a meal or simply to go to the grocery store for their daily or weekly purchase.
With the era of online sales through marketplaces like Amazon or other platforms like Uber Eats, the industry has moved a step forward to a more dynamic model as customers have the possibility to order their favorite foods from home. We can say that this shift was about moving the supply from Point A to Point B, to bring home the product or food concept instead of the experience. But if you think from a restaurant owner or chef perspective, the meal you buy is intended for a dine-in experience, not an at home experience.
There are very few hybrid concepts, like cafes or fast food. In looking at larger chains like Starbucks or McDonalds, the coffee or burger won't change in quality if your order is for-here or to-go. Your experience once you have it at your office or home will be exactly the same. Someone may think, “Well, I can order a pizza to-go or through the delivery app and have it delivered at home and enjoy it with friends and family.” That’s true, but that same pizza will be different at home compared to being served on a table in front of you. The food is intended to be experienced at the place where it is cooked and served, and it is hard to have the same experience unless you are somehow able to exactly duplicate the food at home.
Now due to this unprecedented time, chefs, vendors, restaurant owners, food delivery platforms, and even e-Commerce platforms have a great opportunity to study what their consumers really want, as well as how and where they want it, and to shift the experience from static to dynamic.
A recent blog post from Bain & Company states how adopting simple and digital products is essential for survival; the same approach will be needed with the food experience
Understanding how to dynamically reach customers and how to deliver the new experience of their favorite food will be critical in the post COVID-19 period.
Customers used to drive to the venue. Now to succeed and create a successful gap between you and your competitors, you will need to go to your customers.
One example of a dynamic shift I have seen is with food trucks. Prior to COVID-19, they operated in parking lots among other competitors on a regular basis. These days, I have seen food trucks going near, or if and where allowed, inside of apartment complexes to sell their menus. What a brilliant idea! The truck owner keeps their business alive, reaching a new level of service to customers who can get their food freshly cooked and enjoy it at home without worrying about contamination and driving to a restaurant.
But don’t worry, this blog post is not about becoming a food truck owner!
With some simple steps, you can transition from a static experience to a dynamic one. Start to rethink your customer journey and to consider the following steps:
The menu experience. Remember that your customers want to have the meal with the closest experience they would have if they were at your restaurant. So pick packaging that will accomodate the goal, whether it’s a hot meal or cold meal. You could also try selecting ingredients and creating a series of recipes with easy instructions for your clients to cook at home. Large gatherings and sharing meals are not allowed, so develop a menu and packaging for single portions. And don’t forget about wine, beer, and cocktail selections. Make a suggestion on your menu what wine will pair best with the food and list other drinks as well.
Your cost. While rethinking the menu, you need to take a look at your inventory. What works and what doesn’t. Think about it as “spring cleaning.” The menu will be different during this time, so clear up expired and unnecessary items that you will not need or will expire in the next 4-6 months. It may also help to reduce the total number of items you offer to maximize profits on the best sellers. Understand your new COGS (Cost Of the Goods Sold) and what your margins are and start negotiating better prices with your vendors to become more profitable.
Communication, communication, and (again) communication. Social media is a great tool that you want to master. You need to be active on social media with good pictures and clear messages on what you sell and how you sell it, if you do curbside pick up, delivery (and which delivery companies), or any other forms, what is your best seller meal, what you are doing for the community during and after this period, etc. All of these things help you stay engaged with your customers and help them understand your journey and make them feel important, because not only are you working on your business, but most importantly you are working with your customers on how to improve their experience.
e-Commerce. Other than packaging, new recipes, and social media, you may also want to reconsider selling online. Through your website, you can activate new sales channels, like selling your core ingredients or hosting virtual cooking classes. Thanks to today’s digital tools, selling your products or your knowledge can dramatically improve your revenue, as well as customer acquisition and retention. However, understand it is a structural shift, and therefore the growth of it should be properly developed with industry experts.
Hygiene. If you would like to accelerate the return of your customers for a dine-in experience or create a solid base of loyal clients, you will need to clearly communicate what you are doing on top of the new hygiene rules required in each state. At the reopening, customers will be worried about dining next to strangers, even if they are sitting 6 feet apart from them. You will be required to build trust and provide reassurance that your customers will be safe in your restaurant.
Maintaining a fluid process and focusing on your values
I know many people are scared about embracing changes and challenges, but in some ways we already have changed. So communicate your values to your customers and get closer to them so you can understand their shifting needs. Your offering should be easy to understand and resonate with your audience. Be active and dynamic. Now more than ever customer experience needs to guide the business.