Cape Town - The winter season makes it increasingly difficult for restaurant owners to entice customers from hibernation in their cosy homes and into their establishments, according to Retail Capital CEO David Lewis.
"Times are challenging for most industries in the current economic climate," said Lewis.
"Consumer spending has slowed down, the cost of living is on the rise, and there is a high household debt-to-disposable-income ratio."
An exacerbating factor is the challenge of seasonality that comes with the restaurant business.
How to thrive
Lewis said business strategist Clem Sunter offers three successful strategies that businesses should follow in this environment:
Innovate
If you create something new that people want, you will never struggle to generate turnover.
Listen to customer demands and respond in turn with the continuous development and implementation of innovative concepts that will keep customers coming through your doors.
Offer people value for money
By providing something that offers customers higher perceived value for money, you will encourage them to spend more.
Offer your customers a cheaper alternative
If you provide a reasonable alternative at a lower cost, you will attract additional customers.
Implementing initiatives that support these high level strategies – particularly in the winter months – will make all the difference in not only surviving the slow season, but thriving in the face of challenging economical and seasonal conditions.
"These kinds of initiatives in reality often requires investment at a time when access to working capital can prove difficult," said Lewis.
"In the restaurant business, making your innovative idea a reality requires a funding solution that is equally innovative."
- Fin24
Share your experience of setting up a business or simply ask a question. Our business panel can put you on the right path.