Some of you might be wondering when conditions for our line of business will improve? Are we in a recession? Will we face a recession? How long will it last; most importantly, how will it affect me?
I don’t have answers to any of those questions, and I think neither does anyone else. What I do know though is that it it’s not going to be easy. There are way too many bars, restaurants and pubs out there operating without a clear understanding of the market. As mentioned in previous blogs, the Shanghai expat market is not that great. The same is to be said of the local ‘middle class market’. It is highly inevitable that there will be some closure in the coming months.
But let’s not indulge ourselves in doom and gloom.
I personally believe that in every crisis lies an opportunity. It may seem like the whole world has stopped turning and all that is left to do is complain about how bad things are (and how they are only going to get worse). But let’s remember, that even in the worst financial crisis, the Great Depression, the world continued to function and in due time recovered.
In good times, opportunity comes in the form of just doing more of what already works. But in bad times things get a bit more complicated. Logic would tell us to abandon old concepts and create new ones according to today’s necessities. This means that we will have to have a good look at our operations. We will need to understand what our customers or ‘market’ wants from us – which will most certainly lead us to opportunities or warrant changes within your operation.
If a concept is not working for you, change it. Don’t wait for somebody else to fix the problem for you. Don’t use the current circumstances as an excuse to not do anything. Don’t think for a moment that customers will keep coming back because they understand what is happening.
People still want to go out for a drink and enjoy a nice dinner. They still travel and have needs that our industry can fulfill. We need to take care of those people because if we don’t, they will go elsewhere. With a lot of personal expense accounts tightened, people are now less forgiving than they used to be. You can bet that you’ll be seeing them for the last time if your place or product is not fulfilling. Make sure that what you offer is what you can sell.
Having that said, I would like to share an interesting point with you. I was recently talking to a loyal customer of ours. As most of our other patrons, he conducts business in China and as such travels frequently. He mentioned that he was quite impressed by the fact that none of our employees enquire about the state of his business or moan about the economy crisis, unlike his travels in the US or Europe. Our employees have managed to stay cheerful and focus on the needs of our customers, making them feel welcome rather that pointing out the cutbacks.
If you are out there traveling all over the world, you sometimes need a place where you can go recharge your batteries without being reminded of all the doom and gloom outside. Most of these business travelers are well aware that necessary adjustments have been made in all industries.
So let’s keep this in mind. If we do need to take another look at the core of our operations and concepts, consider it as an opportunity to renovate our business; doing so with the needs of our customers as the main priority and not using the economic crisis as an excuse.
Alfred B. (a wisely chosen pseudonym) is an executive sous chef that has been residing in Shanghai for the past several years. He is our up-to-date person on current events taking place in the food scene. For legal purposes, we cannot reveal his true identity but you can be sure there will be no candy-coated articles from him
