Recently some of the restaurant chain owners started ‘Pay Now, Eat Later’ schemes valid till 6 months, wherein you have to pay some percentage now and pay the rest later when you eat. This is never going to work. How do you think people are going to pay you even Rs. 200 now for nothing in return immediately.
This is like a bank asking money from you, for which you get benefits in the near future, as good as micro-investments. This banking type formula won’t work. What people want is immediate relief.
This can be done through ‘Eat Now, Pay Later’ wherein you create a ‘Food Card’ same like as the ‘Milk Card’ issued by the milkman who comes to deliver milk and then they would do an entry in the card which remains with you.
The restaurant can set some conditions.
a) The customer should be from that same area/locality.
b) The order should be of at least 2 or 3 items. No matter even if the total comes to just Rs. 80. That means no ‘minimum monetary amount’ order like Rs. 200 or Rs. 300.
c) The customer pays either 33% or 50% during the delivery and rest after 60 or 90 days.
d) If the customer is regular from many years (usually this can be found through the software they use, the moment someone calls for the order, the address gets displayed, with past order history maybe). Such customers can be given more credit, for example, don’t pay anything now, pay your bill in 45 days.
The restaurant owner should understand that he is into business, not us. We are the customers, the actual consumer. If you think about how you can benefit your customer immediately, you will pass through these tough times, but if you think how would you benefit, then it’s not going to help you.
Remember, you need to keep selling, no matter if the payment arrives a little bit late, but still, you are rolling. Every cook, waiter, manager and staff understands these are the tough times, they very well know that they cannot leave the job (your restaurant) even if they do, they won’t get an appointment immediately.
So everybody has to hold on and stick together in this, including the vendors you buy your vegetables, fruits, masalas, dairy products, and all. Customer will always think of “What’s in there for me RIGHT NOW“, without spending much immediately.
Restaurant and food business has a profit margin of 300%. You have been already earning a lot all these years. These are the times you can give back to your customers in their bad times. They will always remember you and will appreciate it for their lifetime.
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