Advertise with fastmoving.co.za
 
 

With small businesses already dealing with hikes in VAT and petrol, coupled with decreased consumer spending, load-shedding is a bridge too far, particularly for restauranteurs.
With small businesses already dealing with hikes in VAT and petrol, coupled with decreased consumer spending, load-shedding is a bridge too far, particularly for restauranteurs.

Tips for small business owners to survive load-shedding

MARKETING NEWS

Issued by Irvine Partners - Mar 20th, 09:36

With small businesses already dealing with hikes in VAT and petrol, coupled with decreased consumer spending, load-shedding is a bridge too far, particularly for restauranteurs. 

For those who took their chances with the last rounds of load-shedding and held back on purchasing equipment for standby measures, now might be the time to make those investments. Many business owners are taking loans to fund these capital expenses, says SME funder, Retail Capital.

According to the company’s group brand officer, Erin Louw, “Many establishments often increase their prices to cover the cost of capital equipment, but this may not be the smartest move as it drives the existing customer base away, not to mention new business."

“As it is, consumers are either reducing their restaurant visits or scaling down to just main courses and drinks to reduce the overall spend. Owners who are serious about staying in business should rather think long-term. We all thought that we’d seen the back of load-shedding, but it is back in full force.”

Those restaurant owners who bought gas stoves during the power crisis a few years ago are now at a distinct advantage. Louw points out that communicating that you have this facility available is paramount to good trade. If not, now is the time to invest in going gas and running fridges and other electrical appliances via a generator.

“Part of the reluctance by businesses to consider financing for these items is the perceived turnaround time from applying for a loan to installation. But we now offer a WhatsApp application process that can see your loan secured in 24 hours."

“If you want to attract business, then you need to show customers value - that you’re prepared to invest in the right equipment to keep them supplied during the dark days of load-shedding,” says Louw.

Restaurateurs can even couple load-shedding times with special deals, driving these on social media platforms or adverts and even inexpensive flyers.

Scot Kirton, chef-proprietor for the La Colombe Group (whose restaurant, La Petite Colombe in Franschhoek, won last years Eat Out Retail Capital New Restaurant of the Year Award), says that adapting to change is key, whether it’s in respect to a declining economy or load-shedding.

“Restaurants have had a tough time in Cape Town but now we need to adapt in other ways to keep our restaurants operating,” says Kirton.

Uninterruptible power supplies and back-up power inverter systems that keep tills and computers running should also be considered.

“Even if you have a generator, it can take a few seconds to kick in once the power goes down. But a UPS will bridge the gap and reduce the risk to vital equipment that can be severely damaged during sudden power outages,” says Louw.

Load-shedding, it seems, is here to stay. It’s essential that business owners take that investment step to operating fluidly when the lights go out.


 

Related News

6 Steps to successful customer relationship management
22/04/2019 - 10:26
Six steps to sprucing up your CRM and captivating customers at every touch point along the way.

9 safety tips to help curb cash crimes in SA's stores
22/04/2019 - 10:03
Retailers must accept that cash crime is prevalent in SA and not going away any time soon, says Richard Phillips, joint CEO of retail cash management company Cash Connect.

Retail sales beat expectations in February
19/04/2019 - 12:39
SA shoppers spent more than expected in February, with retail sales growing 1.1% year on year, led by expenditure in the textiles, footwear and clothing sector.

Asian revenue surpasses European for first time at L’Oreal
18/04/2019 - 09:07
L’Oreal got more revenue from Asia than from Western Europe for the first time last quarter as the region’s surging demand for luxury products continued to resist the drag of a slower Chinese economy.

Easter is also a feast for criminals, retailers and consumers warned
18/04/2019 - 09:01
There is a tendency among criminals to use the Easter long weekend - and its spike in shopping - to their advantage, says Richard Phillips, joint CEO of retail cash management company Cash Connect.