{"id":13563,"date":"2020-04-16T09:24:29","date_gmt":"2020-04-16T13:24:29","guid":{"rendered":"http:\/\/newsroom.chainstoreguide.com\/?p=13563"},"modified":"2020-04-16T09:24:29","modified_gmt":"2020-04-16T13:24:29","slug":"retailers-restaurants-adapting-change","status":"publish","type":"post","link":"https:\/\/www.chainstoreguide.com\/offthechain\/2020\/04\/retailers-restaurants-adapting-change\/","title":{"rendered":"How Are Retailers & Restaurants Adapting to Change?"},"content":{"rendered":"

Approximately one month ago,\u00a0retail stores<\/a>\u00a0and\u00a0foodservice operations<\/a>\u00a0began closing their doors.\u00a0Stores were\u00a0forced to focus on an online platform and\u00a0restaurants\u00a0had to shift\u00a0to pick-up and delivery options. It is an unprecedented development and our arrival at the present situation would have been hard to predict. Some\u00a0of these businesses\u00a0have been left out in the cold\u00a0while\u00a0others have new avenues for success and have paved the way for a different looking future.<\/p>\n

We have\u00a0discussed\u00a0in the past about some of the larger retailers like\u00a0Target\u00a0<\/strong>that are\u00a0still open<\/a>,\u00a0however\u00a0we should also be looking at the\u00a0chains\u00a0that were deemed\u00a0\u201cnon-essential\u201d. These\u00a0companies\u00a0have been forced to close brick-and mortar locations and become entirely reliant on the digital platform. Retail was certainly headed towards a digital future, yet\u00a0no one was prepared for the shift to happen so rapidly. Companies have fortified their digital infrastructure and in some cases entirely redesigned their business model. An early example of this shift has been\u00a0the\u00a0sportswear company\u00a0Under Armour<\/strong>.\u00a0A few weeks ago their business model was focused around athlete endorsements and retail chains like\u00a0Champs Sports<\/strong>\u00a0and\u00a0Dick’s Sporting Goods<\/strong>. Now, Under Armour has redesigned their entire\u00a0website\u00a0<\/a>to help people workout from home and find the right athletic wear. This kind of reinvention is crucial to their survival and could provide a blueprint for others to follow. A radical resdisgn of a business model is not always necessary, but each company must be willing to adapt.<\/p>\n

Thankfully many retailers already had an\u00a0online presence<\/a>,\u00a0but the challenge for restaurants was more complex. Restaurants do not have business models designed around dining rooms being closed and pre- COVID-19,\u00a0there was reluctance with regards to delivery. Third party companies like Grubhub and Doordash dominated the space, but often charged up to a 30% fee per order. The alternative was to develop an in-house delivery system, but that could also be cost prohibitive especially for smaller restaurants. COVID-19 altered plans and left restaurants with a dearth of options. There was no time to launch a delivery system and\u00a0incentives\u00a0allowed restaurants to join third-party services. Many restaurants are still open and\u00a0are receiving more orders than they can handle. The issue stems from the kitchens not being optimized for delivery and\u00a0forced to reduce staff due to CDC guidelines. The loss of\u00a0revenue\u00a0from dining rooms and the profit sharing with third-party apps has created a business model that is keeping some afloat, but is not sustainable for the future. This has forced the restaurant industry to reconsider what delivery in the future will look like to guard against events like the COVID-19 outbreak and remain profitable.<\/p>\n

Ideally, we will see businesses begin to\u00a0reopen in the next few weeks,\u00a0nonetheless\u00a0that does not\u00a0necessarily\u00a0mean everything will return to\u00a0normal.Traditional customers will\u00a0more than likely\u00a0be reluctant to venture out following the lifting of the shutdown\u00a0and in time\u00a0things will slowly begin to return to a sense of normalcy. Of course\u00a0this\u00a0will look a little different as the most successful companies will attempt to innovate in their new environment. Retailers will need to focus on a true\u00a0omni-channel\u00a0experience where online and brick-and-mortar are extensions of the same core. Unique customer experiences and services will get\u00a0shoppers\u00a0back into the store, nevertheless they will need to bring strong innovations as this will not be a return to \u201cbusiness as usual\u201d. They will need a cohesive message that stores are open physically and digitally and that a customer\u2019s needs can be met in any way. Restaurants are likely to reduce dining room capacity and look to\u00a0further develop\u00a0delivery platforms. Many restaurants have expressed displeasure with\u00a0third-party\u00a0services\u00a0and their profit sharing model.\u00a0The foodservice industry\u00a0will invest in their own delivery\u00a0programs\u00a0and there will be an opportunity for new delivery models to take shape. Even beyond the next four weeks,\u00a0omni-channel\u00a0experience and delivery methods will\u00a0be\u00a0essential parts of\u00a0business\u00a0models going forward.\u00a0As we move towards this future, manufacturers and suppliers will\u00a0find new opportunities<\/a>\u00a0in places they may have previously not considered and Chain Store Guide will be here to provide the connections they need to succeed.<\/p>\n

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Approximately one month ago,\u00a0retail stores\u00a0and\u00a0foodservice operations\u00a0began closing their doors.\u00a0Stores were\u00a0forced to focus on an online platform and\u00a0restaurants\u00a0had to shift\u00a0to pick-up and delivery options. It is an unprecedented development and our arrival at the present situation would have been hard to predict. Some\u00a0of these businesses\u00a0have been left out in the cold\u00a0while\u00a0others have new avenues for success… Continue reading How Are Retailers & Restaurants Adapting to Change?<\/span><\/a><\/p>\n","protected":false},"author":15,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"post-template-no-sidebar.php","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[37],"tags":[38],"class_list":["post-13563","post","type-post","status-publish","format-standard","hentry","category-now-trending","tag-now-trending","entry"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.chainstoreguide.com\/offthechain\/wp-json\/wp\/v2\/posts\/13563","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.chainstoreguide.com\/offthechain\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.chainstoreguide.com\/offthechain\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.chainstoreguide.com\/offthechain\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/www.chainstoreguide.com\/offthechain\/wp-json\/wp\/v2\/comments?post=13563"}],"version-history":[{"count":0,"href":"https:\/\/www.chainstoreguide.com\/offthechain\/wp-json\/wp\/v2\/posts\/13563\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.chainstoreguide.com\/offthechain\/wp-json\/wp\/v2\/media?parent=13563"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.chainstoreguide.com\/offthechain\/wp-json\/wp\/v2\/categories?post=13563"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.chainstoreguide.com\/offthechain\/wp-json\/wp\/v2\/tags?post=13563"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}