Lockdown: 7 Tips for Preparing Your Business for Restrictions

Contents:

• Current issue: restaurant closures and shortage of couriers
• Closure of offline stores: challenges and new opportunities
• Current issue: closure of fitness clubs and beauty salons
• The impact of border closures on the tourism sector: decreased demand for services

A pressing issue: restaurant closures and a shortage of couriers

According to information from the VK Jobs and Samokat platforms, in Russia over the past year There has been a significant increase in demand for couriers, up eightfold. Meanwhile, the average salary for couriers has increased by almost 30%, reaching 57,000 rubles. This situation is leading to an acute staffing shortage in the restaurant industry, which could negatively impact service quality and availability. The labor market in this sector requires new approaches to attracting and retaining specialists to meet growing demand. Under the introduction of non-working days and in the absence of additional restrictions, such as mandatory QR codes or complete restaurant closures, establishments should continue to operate as usual, as they do on other long weekends. Sergey Mironov, Vice President of the Federation of Restaurateurs and Hoteliers of Russia, emphasizes that if strict measures are introduced, it is recommended to either close the establishment or organize delivery. However, it is worth noting that in most cases, delivery revenue accounts for only 7% of a restaurant's total income.

Ksenia Biryukova, owner of Sisters Cafe, realizes that launching delivery on the seventh day The lockdown was a mistake. In today's reality, she recommends that restaurateurs organize their delivery system in advance and not wait for restrictions to be imposed. At Sisters Cafe, both Ksenia and her employees work as couriers, which creates additional challenges, including finding addresses and interacting with customers. Efficient delivery can significantly increase the establishment's competitiveness and ensure a stable income even in difficult times.

Ksenia offers a convenient solution for those who value their time. Her selection includes not only a variety of dishes but also ready-made meal sets for a day, priced at around 1,500 rubles. This approach significantly simplifies the process of meal preparation and delivery, saving time and effort.

Last year, active advertising campaigns to attract new customers did not produce the expected results. Ksenia advises focusing on regular customers and loyalty program participants, as during a crisis, consumers are more likely to choose familiar and trusted products. This approach will help increase sales and strengthen customer relationships, which is especially important during challenging economic times.

In March 2020, the founders of the Kooperativ Chyorny coffee shop initiated a program selling deposits that could be exchanged for coffee after the end of self-isolation. This idea raised 670,000 rubles, significantly supporting the business during this difficult period. In addition, an online store was launched, which generated 3 million rubles in revenue in April. This significantly strengthened the coffee shop's financial stability and demonstrated its successful adaptation to new market conditions.

Before the pandemic, the Receptor cafe chain consisted of six locations and one coffee shop, with a total revenue of 10-12 million rubles per month. Currently, only one cafe is open, and its founder, Nadezhda Pak, predicts a revenue decline of up to 10% of the planned level on non-working days. This reflects the current challenges facing the restaurant business amid restrictions and changing consumer habits.

Alexey Mironov, co-founder of the Mayak 13 holding company, recommends that restaurants that don't specialize in delivery consider temporarily closing or optimizing costs. He emphasizes that revenue can drop by up to 90% on non-working days, and by 40% when using QR codes. It's important to consider these factors for effective business management in a changing market. Cost optimization and rethinking business models can be key to the survival and continued growth of restaurants in a challenging economic climate.

Restaurants not optimized for delivery often experience low order volumes. It's important for business owners to consider this factor when developing growth strategies and planning business processes. Adapting to the demands of the delivery market can significantly improve competitiveness and increase revenue.

Offline Store Closures: Challenges and New Opportunities

According to a study by MySklad analysts, at the beginning of the pandemic, 62% of Russian entrepreneurs relied on retail for their income. Today, this figure has dropped to 5%. In today's environment, 32% of business owners have begun actively using marketplaces, online stores, and social media to sell their goods. This indicates a significant transformation in approaches to doing business and adapting to the digital environment. The use of online platforms has become a necessary step for survival and growth amid changes in consumer preferences and market conditions.

Last spring, the Nebabushka handicraft store brought in 60% of revenue comes from offline sales in central Moscow. After the closure of her retail store, owner Natalia Maltseva faced financial difficulties, unable to receive compensation for employee salaries. The store's primary activity was online sales, which exacerbated the situation. During the crisis, Natalia focused on developing online sales, implementing new marketing strategies, and improving customer service, which helped attract new customers and restore financial stability. To overcome the crisis, Maltseva optimized her offline store expenses and focused on online sales, which increased by 50% during the lockdown. At the end of the summer, she decided to sell her store, confident that the transition to an online format was timely, as autumn traditionally sees a surge in demand for yarn. Vladimir Mitrofanov, founder of Okasi chocolate bars with unique additives, shared his experience in online sales. Previously, online sales accounted for only 10% of his income, but now they've grown to 60%. Mitrofanov emphasizes that connecting to major marketplaces takes just a few hours. He recommends that entrepreneurs do this themselves to avoid significant distributor costs. This approach effectively increases revenue and expands their customer base. Mitrofanov emphasizes that successful marketplace operations require high-quality service and attractive product presentation. The same rules that apply to offline retail remain relevant for online sales: it's important to provide detailed descriptions and high-quality product photos, as well as actively engage with customers. Maintaining these standards helps build customer trust and, consequently, sales growth. Maxim Belozerskikh, owner of the MOM Decor workshop, recommends selling a wide range of products and registering on all available marketplaces, including international platforms. He noted that during the lockdown, sales on Etsy increased significantly, while other channels saw a decline. Expanding their presence across various marketplaces allows businesses to attract more customers and adapt to changing market conditions.

Alexander Krupetskov, manager of the Cheese Sommelier chain of cheese shops, successfully adapted his business to the current reality by launching online cheese tastings via video chat. For two thousand rubles, participants receive not only a selection of various cheeses but also the opportunity to chat with a sommelier via Zoom or Skype. This tasting format allows customers to enjoy the unique flavors of cheeses from the comfort of their home and receive professional recommendations on pairing cheeses with drinks. Online tastings are a new trend in the world of gastronomy, opening new horizons for cheese lovers.

Although online tastings account for a small percentage of revenue, they play a vital role in maintaining customer connection, especially for companies operating remotely. Currently, approximately 30% of Cheese Sommelier's revenue comes from delivery services. These activities not only strengthen customer relationships but also help attract new audiences, an important aspect of business development in today's environment.

A pressing issue: the closure of fitness clubs and beauty salons

According to the National Fitness Society, the Russian fitness industry suffered losses of 65 billion rubles and lost approximately 20% of its employees during the pandemic. To adapt to quarantine conditions, many sports facilities began offering online training. A GetCoach study found that 35% of trainers switched to virtual classes, making it the most popular solution among fitness clubs. Meanwhile, martial arts clubs maintain a more traditional approach to training. Online training has become an important tool for the survival and development of the fitness industry in the new reality.

Beauty professionals recommend their colleagues adapt to the new conditions by organizing online training and offering home delivery of professional cosmetics. During the pandemic, salons have begun actively introducing home visits, especially in regions such as Buryatia, Kemerovo, and Ulyanovsk. However, in Moscow, only 10% of the nearly 13,500 hairdressing salons offer this service. This creates an opportunity to develop new formats and meet the needs of clients who prefer services in a comfortable environment. It is important to note that the demand for home services continues to grow, and salons that adapt to this trend can significantly increase their competitiveness.

In July 2020, the network's CEO Nikolai Pryanishnikov, head of World Class fitness clubs, reported that their online classes on YouTube and Instagram attract approximately one million participants daily. The chain's client base is 110,000. World Class generates revenue through advertising, while smaller clubs offer training subscriptions. For example, the Topstretching studio offers a course of 20 short workouts for just 48 rubles per day. Online fitness is gaining more and more fans, opening up new opportunities for developing trendy training formats and expanding the client base.

According to estimates by the Association of Fitness Industry Operators, online formats can generate 1-2% of total fitness business revenue. A Skillbox Media survey found that many trainers don't invest in creating full-fledged digital platforms, limiting themselves to simply recording videos and sending them to their clients via messengers. This underscores the relevance of digital solutions in the fitness industry, as the proper implementation of online formats can become a significant source of additional revenue and improve customer engagement.

During the previous lockdown, Ekaterina Sukhotina, founder of the Eksprovocator Hair Club chain, decided to launch her own production of professional hair and facial care products. The chain's salons serve approximately 20,000 clients, of whom approximately 40% choose not only haircuts and coloring, but also treatments. Left without access to salons, clients have shown interest in purchasing products based on recommendations from their stylists. Prices for shampoos and conditioners range from 2,000 to 3,000 rubles. The launch of a new line of care products allows her to meet the growing demand for quality products, providing clients with effective hair and skin care solutions.

Sukhotina believes that product delivery will account for 20-30% of weekly revenue, but this will not lead to significant profits. She also warns of the risks associated with cutting or coloring your hair at home. Economy-class clients are often unwilling to cover the stylist's travel costs, preferring to wait until the lockdown ends or visit a specialist themselves. Premium salons may face the risk of damaging their reputation if the stylist isn't equipped with everything necessary or if the client's bathroom isn't prepared for professional work, notes Sukhotina. It's important for salons to offer clients convenient and safe solutions that take into account current realities and client preferences. The Impact of Border Closures on the Tourism Sector: Decline in Demand for Services According to Rostourism, the Russian tourism industry suffered losses estimated at 1.5 trillion rubles in the first six months of the 2020 summer season. Department head Zarina Doguzova emphasized that the figures provided only partially reflect the real situation, and actual losses could be significantly higher. This highlights the serious consequences of the pandemic for the Russian tourism industry, which require attention and solutions to restore the sector.

During the pandemic, hotel co-owner Alexey Petrapolsky adapted his business by starting to rent out rooms for long-term rent, similar to apartments. Tenants could get a room in central Moscow for the price of a one-bedroom apartment in Biryulyovo. Although this measure wasn't profitable, as the rooms were rented at cost, it helped cover operating expenses and keep the business afloat. Adapting the rental model proved an effective solution during the crisis, helping preserve jobs and support the local economy.

During the new non-working days, Petrapolsky plans to maintain his usual operating hours but expects a decrease in profitability. Event cancellations and a deteriorating atmosphere could lead to customer cancellations. He recommends his colleagues consider lowering prices if tourist traffic declines by 30%. He, for his part, is prepared to reduce the room rate from 5,000 to 3,500 rubles. This will help attract customers and remain competitive in the current situation.

Before the pandemic, Manyuni focused on producing textiles for travel. However, during the lockdown, demand for these goods fell by 70%. The company's founder, Nadezhda Ilyina, emphasized that many contractors have canceled contracts, citing force majeure. In the changing market, Manyuni was forced to adapt to new realities and revise its strategy to survive and maintain its business.

In response to current challenges, Ilyina introduced clauses regarding compliance with anti-COVID measures into contracts and expanded its product range, adding masks and household goods. She emphasizes the importance of caution and cautions against making hasty decisions based on rumors. This allows not only to adapt to new conditions but also to maintain business stability in the face of uncertainty.

One example of an ineffective response: "When rumors arose about a shortage of elastic bands for masks, we purchased them in advance and only now began selling off the remaining stock."

Before the pandemic, ExploRussia achieved significant success organizing excursions for foreign tourists in Moscow and the Trans-Siberian Railway. However, the border closure led to a virtual halt in their business.

Olga Sitnik, co-owner of ExploRussia, decided not to switch to domestic tours, as this would require revising business processes and retraining employees. Instead, the company focused on developing a tourism strategy for the village of Maly Turysh in the Sverdlovsk region and other projects supported by grant funding. This will allow for the efficient use of resources and maintain focus on current activities, promoting local tourism and attracting investment to the region.

While this activity does not generate significant profits, it helps the company maintain its resilience in the face of restrictions. Such initiatives can play a key role in ensuring financial stability and maintaining competitiveness in the market.

Demlink has adapted to the pandemic by offering clients virtual meetings as an alternative to traditional business trips. Co-founder Oleg Beglyarov notes that if travel restrictions are reintroduced, demand for virtual meetings is expected to increase. This solution allows for maintaining a high level of communication and collaboration while ensuring safety and convenience for clients. Virtual meetings are becoming not only a temporary measure but also a sustainable solution for business in a changing world.

For successful business trips, it is important to consider regional restrictions and regulations related to hotel accommodations and the use of public spaces. Adhering to these standards will help avoid problems and ensure a comfortable stay. When planning business trips, it's a good idea to research the current requirements in each specific region in advance to ensure compliance with local laws and regulations.