We are passing an uncertain time that can be very difficult for us to grasp. Many are assuming that this pandemic of COVID-19 might be here for a long time, couple of years at least. Businesses are facing an unprecedented challenge to survive. The impact of this pandemic will affect different industries differently and hence, they need to adapt accordingly. The post pandemic world can be very different from the one that we know. Consumers will adapt a different lifestyle and a conservative economic approach. The overall economic situation might continue to decline for a long time before it starts to pick up again. Even global leaders are not thinking any differently for businesses in 2020. “For people in business, 2020 is really just a year for staying alive. Don’t even talk about your dreams or plans. Just make sure you stay alive. If you can stay alive, then you would have made a profit already” – Jack Ma Even though restaurants are open aimed the persisting situation, restaurants are trying their best at preventing the spread of coronavirus, stakeholders say business is in shambles and they are worried about paying bills and their staff. This has put restaurant owners in a predicament and they say they are not sure for long they can sustain losses as the situation shows no sign of improvement. The restaurant business is bleeding. Stakeholders said they are going through a difficult time and are worried about meeting monthly costs and expenses including rents, utility bills and salaries of staff. Many upscale restaurants are also incurring significant revenue loss as foreign visitors cancelled their tours amid the ongoing COVID-19 pandemic. According to a number of restaurant owners the eateries open for several hours daily and but the lack of customers are hurting businesses. Besides, people’s increasing tendency to order food online is also declining as the customers are not comfortable with parcel delivery at their doorsteps due to the contagion. Shafiqul Islam, a proprietor of Café Haji Biryani hotel at Najirabazar, said their business is on the wane. He stated “We keep our hotel open following the government’s directive but we’re not getting enough customers as many have left Dhaka or stay home. We’re worried about pay, hotel and house rents, gas and electricity bills and staff salaries. We are going through a difficult time now”. Shafiqul said every year they have buoyant sale in Ramadan but the scenario has not been the same this year. Forkan Mia, a hotel staff, said he is worried about his job. According to him, after the government announced holiday in March 2020, the hotel owner asked the employees to go home. They work on daily basis hence making it difficult to make an earning. If the sale is poor, how will the owners pay the salaries? So, most of the workers returned to their villages. They don’t know when they can rejoin work and are facing deep financial trouble. Another restaurant worker, Md Sumon Islam, said he worked for an upscale restaurant in Gulshan for years. He has never faced such a situation before. Most waiters depend on tips from customers and without many customers visiting restaurants, they are now passing through a very difficult time. According to Anwar, another restaurant staff, some workers returned to their villages before the closure of the public transport while many of them are now stuck in the capital with their families finding it hard to earn a decent living. Let’s assume that you are working as a consultant for a restaurant. You can pick and choose any restaurant of your choice. Based on the scenario given above answer the following questions: What are the major pricing strategies that can be used at the restaurant of your choice?
We are passing an uncertain time that can be very difficult for us to grasp. Many are assuming that this pandemic of COVID-19 might be here for a long time, couple of years at least. Businesses are facing an unprecedented challenge to survive. The impact of this pandemic will affect different industries differently and hence, they need to adapt accordingly.
The post pandemic world can be very different from the one that we know. Consumers will adapt a different lifestyle and a conservative economic approach. The overall economic situation might continue to decline for a long time before it starts to pick up again. Even global leaders are not thinking any differently for businesses in 2020.
“For people in business, 2020 is really just a year for staying alive. Don’t even talk about your dreams or plans. Just make sure you stay alive. If you can stay alive, then you would have made a profit already” – Jack Ma
Even though restaurants are open aimed the persisting situation, restaurants are trying their best at preventing the spread of coronavirus, stakeholders say business is in shambles and they are worried about paying bills and their staff. This has put restaurant owners in a predicament and they say they are not sure for long they can sustain losses as the situation shows no sign of improvement.
The restaurant business is bleeding. Stakeholders said they are going through a difficult time and are worried about meeting monthly costs and expenses including rents, utility bills and salaries of staff. Many upscale restaurants are also incurring significant revenue loss as foreign visitors cancelled their tours amid the ongoing COVID-19 pandemic.
According to a number of restaurant owners the eateries open for several hours daily and but the lack of customers are hurting businesses. Besides, people’s increasing tendency to order food online is also declining as the customers are not comfortable with parcel delivery at their doorsteps due to the contagion.
Shafiqul Islam, a proprietor of Café Haji Biryani hotel at Najirabazar, said their business is on the wane. He stated “We keep our hotel open following the government’s directive but we’re not getting enough customers as many have left Dhaka or stay home. We’re worried about pay, hotel and house rents, gas and electricity bills and staff salaries. We are going through a difficult time now”. Shafiqul said every year they have buoyant sale in Ramadan but the scenario has not been the same this year.
Forkan Mia, a hotel staff, said he is worried about his job. According to him, after the government announced holiday in March 2020, the hotel owner asked the employees to go home. They work on daily basis hence making it difficult to make an earning. If the sale is poor, how will the owners pay the salaries? So, most of the workers returned to their villages. They don’t know when they can rejoin work and are facing deep financial trouble. Another restaurant worker, Md Sumon Islam, said he worked for an upscale restaurant in Gulshan for years. He has never faced such a situation before. Most waiters depend on tips from customers and without many customers visiting restaurants, they are now passing through a very difficult time. According to Anwar, another restaurant staff, some workers returned to their villages before the closure of the public transport while many of them are now stuck in the capital with their families finding it hard to earn a decent living.
Let’s assume that you are working as a consultant for a restaurant. You can pick and choose any restaurant of your choice. Based on the scenario given above answer the following questions:
- What are the major pricing strategies that can be used at the restaurant of your choice?
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