How to survive and succeed

According to Vijay Vaitheeswaran, business editor of The Economist magazine in the United States, innovation has accelerated, and now is the time to take risks, or stay stagnant and likely to fail. He argues that ideas can and should come from anywhere in the company, and they need to be implemented as quickly as possible.

According to expert forecasts, the pandemic will cost the global economy $20 trillion. However, it was the raging coronavirus that forced the economy to quickly adapt to new trends in almost all areas of life. In part, they appeared already in 2019, and in some places even a little earlier: these are demographic changes, urbanization, a quantitative increase in the middle class and hyper-connectivity. The latest trend is particularly impacting the restaurant industry.

Context of change

Hyperconnectivity raises privacy policy issues. In the USA, for example, a person is well protected online - there are many ways to remain incognito on the Internet. In Asia, the opposite is true, and it would seem that there is something to be happy about, but it is the online insecurity of the society of a number of eastern countries that is preventing the spread of the virus. How? Of course, an important role is played by the fact that they prefer to follow rules and regulations and demand the same from others. But the point is also that their movements can be easily recorded, so it becomes much easier to track which people, where and when could have come into contact with sick people.

In practice, this began to be used here: many restaurants offered guests to control their contacts when visiting an establishment using QR codes. If one of the visitors falls ill, the rest of those in contact with him are notified via SMS.

Why we need to protect nature

Of course, the virus is not the only problem that businesses face every day. Natural disasters and global warming may also well become the causes of a crisis in the public catering sector, so the world community is doing everything possible to prevent and minimize the consequences of such events in the future. For example, fast food companies are implementing strategies to educate guests about their carbon footprint or reduce carbon emissions from the production of the beef they used in their cooking. As the industry develops, it pays more and more attention to environmental issues and works to reduce its own impact on it.

How to survive and succeed

Vijaya Vaitheeswaran outlined 4 rules that will help businesses survive in our difficult times: intimacy, frugality, agility and communication. What did he mean?

Proximity is the ability of a business to quickly introduce into its own structure such innovations that are just beginning to emerge in society. A good example is switching to local products and supporting local businesses instead of purchasing products labeled Made in China.

Thrift is actually a rejection of unnecessary luxury. The industry has already seen similar upheavals: Some fine-dining restaurants have begun offering takeout at lower prices, investing in delivery promotions and ditching the use of white tablecloths. “Frugality will become the new norm,” says Vaitheeswaran: “Many consumers will spend less, and will not do so as ostentatiously as before.”

Agility —the ability to quickly get back on your feet after failure—is a strategy for success. A distinctive feature of a competent business is fearlessness in the face of failure (but, of course, not recklessness). The analysis paralysis of companies that have been on the market for a long time, the ossified business model and stagnation must be effectively overcome - such a strategy is not at all profitable both during the crisis and after its end.

Connection is about actively involving others in the process and is a big part of success. Moreover, interaction is necessary not only between colleagues within the company, but also between companies. Vaitheeswaran advises business owners to try to think outside the box when it comes to developing new partnerships.

From regression to renewal

“When life returns to normal and people return to work and restaurants, it will be easy to forget about this [COVID] problem, but I encourage you not to forget about it,” says Vaitheeswarana. He argues that renewal can only be achieved through innovation and ambition, balanced by a democratic approach to business.