Top 22 Food Industries Pandemic Surviving Tips

Food Industries Pandemic Survival: The food sector of manufacturing transforms agricultural or livestock products into products for consumption. Typically, these are sold to wholesalers or retailers who then sell those products to consumers. A few examples of food manufacturing products are baked goods, grains, fruit and vegetable preserves and animal meat.

Food Industries Pandemic Survival

Food Industries Pandemic Survival:

Food Industries Pandemic Survival

Food Industries Pandemic Survival

Food Industries Pandemic Survival

As the coronavirus continues to spread worldwide, restaurants and food services companies are affected in various ways.

With major countries having declared a state of emergency, closure of non-essential businesses.

And social distancing, the food service industry sales are down by around 80%.

While few restaurants are able to maintain normal revenues.

By providing meals via takeout and delivery options.

Others are still confused on whether to choose to remain open or close temporarily.

Food Industries Pandemic Survival

For restaurants to survive during the coronavirus crisis.

They will need to find creative solutions and adapt to customers’ plight.

As customers are more budget-conscious these days.

One strategy for restaurant owners to consider is creating new discounted entrees.

Also, adding healthy food items on the menu can help attract new customers.

In this article, our experts have outlined key strategies for companies in the food service industry to navigate the covid-19 crisis.

See also: 16 Ways to Become Self Educated During Lock-down in Nigeria

Food Industries Pandemic Survival

The economy always has and always will have its ups and downs.
It’s easy to coast through the good times, but how do you come out of the tough times unscathed?
By preparing adequately, cutting costs, and making sure you still have some income coming in.
You can emerge out of any Pandemic just as strong as you were before it.

1. Create an emergency fund.

If you don’t already have you an adequate emergency fund set aside, specify a goal for how much money you want to add to it every month. Your fund should be kept in a savings account with your bank.

  • While normally it’s recommended that a two-income couple keep three months’ worth of expenses in an emergency fund, during a downturn the recommended amount is six months’ worth instead. This is especially important if you’re in an industry that gets hit hard by a recession (e.g., construction, financial services, food) and if you’re a one-income family.
  • Dual-income families may be safe with three or four months’ worth of savings.
  • If you’re self-employed, you should set aside up to a year’s worth of expenses.

Food Industries Pandemic Survival

2. Pay off debt.

You should always work to be debt free, but when a recession is coming it’s even more important to do so. Focus first on paying off your debt with the highest interest rate, which is usually your credit card debt. From here, pay off debts with lower interests rates as you can, working to lower your debt as much as possible. Reducing your debts will lower your monthly expenses and give you a better chance of surviving any Pandemic if you lose your job or need to cut down on spending.

  • Money saved from not having to pay debt repayments can then be saved for your emergency fund or otherwise saved. Saved money can be invested in securities when their prices drop during  any Pandemic.

See also: Top 24 Lock-down Children’s Reading Tips in Nigeria

Food Industries Pandemic Survival

3. Create additional income streams.

In  any Pandemic, there’s always the chance that you might lose your job. Your primary focuses should be to keep your current job and be ready to enter the market again for a new one if you lose it (keep an updated resume, investigate job opportunities, etc.). However, you can also increase your financial security by creating separate income streams. These can be a second job, an online business, or any form of passive income.

  • Even if you can only make an additional #500 or #1,000 per month, this extra income can help you get through tough time if your primary source of income dries up.

4. Diversify your investments.

During a recession, stock prices will usually fall dramatically, which means your investment accounts could be hit hard. While many companies, and their stock prices, will recover out of the recession, some will enter default and cause you to lose money. You can reduce the risk of this happening by spreading out your investments. Think about buying bonds, investing in securities from other countries, or investing in precious metals. These investments, particularly the last two, may move independently of the market and can protect your assets in a recession.

  • You can also look outside the market to invest in real estate, like land or apartments, that will usually appreciate in value over time, sometimes even through recessions.

Read on: 17 Tips to Work Smart Business in Nigeria

5. Talk it over.

Sit down with every member of your household and go over your finances. How you resolve and differences in your approach to money will have a profound effect on your relationship’s chances of succeeding.

  • Now is the perfect time to set an example for your children, and show them how a family can pull together during tough times and everyone can chip in.

Food Industries Pandemic Survival

6. Reduce expenses.

There are many ways to cut expenses during a recession. In many cases, you can maintain your same quality of life while focusing on living lean and cutting out extravagant and unnecessary expenses.

  • Cut discretionary spending. Buy nothing if you don’t need it to live. Resist sales pitches. Don’t even think about using that new credit card offer in the mail, even if it does have a low APR and no payments for two years, you should evaluate it carefully.
  • Transportation: Carpool as much as you can. Consider commuting by bicycle or even living without a car. But if that’s not practical, look for ways to save money on gas.
  • Housing: Get a roommate or consider relocating to an area with a lower cost of living. Maybe you can move in with family members until the economic downturn blows over. Keeping the peace in a multigenerational household isn’t always easy, but it has its own rewards.
  • Food: Stop going out to eat; instead, try to cook at home from scratch more often. Consider the benefits of the slow food movement. If you don’t have enough time to cook, try doing it just once a month. Find good deals at a local farmers’ market.

Read on: Top 22 Ways to Start Patent Business in Nigeria

7. Keep the money flowing in.

If you have a job, be an amazing employee. Now is not the time to slack. Show up early, stay late, and volunteer for projects. Pick up the slack for other workers; it’s what will happen when people get laid off, anyway, so now is the time to prove yourself. Look for ways to save your employer money, especially if you see your employer doing little things to that effect, like encouraging employees to turn of their computers. Try to quantify your efforts in terms of how you’ve raised profits and cut costs. Start networking so that in case you still get laid off, you have a safety net of contacts who might be able to help.

  • If you don’t have a job, find other ways to make money fast. Focus on cutting your expenses, as described in the previous step, and consider volunteering; if you’ve got the spare time, there are organizations that will need your help, and you could establish good karma in your community.

Food Industries Pandemic Survival

8. Keep saving.

If you can, fit saving into your budget, even during a recession. You should make every effort to continue contributing to retirement accounts and college funds, if you have them. If you don’t have the money to contribute, consider cutting out other expenses to make it work. When you come out of the recession, you’ll be glad you kept up with saving and your accounts will reflect the interest you’ve earned during that time.

  • In addition, putting money into the stock market during a recession can be a wise move. If you buy stock in reputable companies when prices are low, you stand to gain a lot of money when they come back up out the recession.

See also: Top 100 Products for Retail Business in Nigeria

Food Industries Pandemic Survival

9. Enjoy life.

In order to avoid recession depression, don’t let fear control you. An intense feeling of paranoia can make you an inflexible employee and also strain your relationships. Be thankful for what you have, and make sure to have fun. Instead of not taking a family vacation, for example, take a Staycation or exchange your home for free accommodation instead. Invite your family to think of creative ways to save money without skimping on happiness. Accept difficult times as a challenge for your fortitude and adaptability.

Read on: Top 10 Sustainable Agricultural Practicing Tips in Nigeria

Food Industries Pandemic Survival

10. Develop a risk management plan.

If you haven’t already done so, create a plan for what to do in the event of a recession. This risk management plan should include a set of actions you plan to take in the event that you lose business or customers due to an economic downturn. After all, it will be easier to think of what to do before a recession that in the heat of the moment as your employees are panicking and unsure of what to do. Make sure to create concrete steps to follow and then transmit the plan to other managers or partners so that they can follow it as well.

See also: 19 Tips to Open Mini-Beads Making Company in Ghana

Food Industries Pandemic Survival

11. Reduce expenses.

Your first course of action when hit by a recession should be to cut expenses where you can. This will help your business stay in operation while you work out a more permanent solution or until the economy recovers. Look around to reduce overhead costs like utilities, administration, and wasted materials. You can also reduce your inventory levels so that your assets aren’t so tied up in product that may go unsold for months. If those don’t work, consider:

  • Cutting your advertising spending. Pull out of traditional advertising like television and radio and instead focus on improving your social media presence. Doing so is free, even though it might take more of your time.
  • Downsizing. Your other option to downsize. This can mean either reducing employees or moving to a cheaper location. Your remaining employees may have to work harder, but your business will at least be able to survive.

12. Cross-train your employees.

If you do end up letting some employees go, you will need others to step into their roles. This is why it is important to cross-train your employees for various roles within the business. This is best if done before it is needed.

Read on:17 Top Nursing Activities in Nigeria

Food Industries Pandemic Survival

13. Focus on customers.

You should focus all of your efforts on retaining regular customers and maintaining your relationships with them. Make sure that they know that their business is appreciated. In addition, keep your quality just as high as before, even it you’ve had to make other cuts around the business.

  • A recession is also a good opportunity to evaluate your customers. You may have those customers who are not profitable to work with. A recession is the perfect time to sever these relationships and seek new ones.

Food Industries Pandemic Survival

14. Don’t cut your prices.

Many businesses turn to deals and sales when the recession is hurting them. However, doing so will only make it harder for customers to justify paying your regular prices when the recession is over. In addition, these lower prices can cut into much needed profits. The only exception is that you may want to offer one-time payment extensions or discounts to customers that are also having a hard time. Just be clear to them that you are only extending this service once.

15. Implement an EAP (employee assistance program) process.

Today, restaurant businesses are encountering labor shortage challenges and high turnover rates, compelling restaurant owners to focus into keeping their staff safe and healthy. In the middle of such an escalating health crisis, food service companies will need to connect with their employees and try to understand their needs. This can be done by implementing an EAP (employee assistance program) process.

16. Providing home delivery options.

Food Industries can choose to partner with a third-party service provider and ensure business continuity by providing home delivery options. While others can choose to offer paid sick leave and build trust of employees.

Food Industries Pandemic Survival

17. Installing hand sanitizing stations

Moreover, food service companies should ramp up cleaning processes to ensure safety of customers as well as their employees. This can be done by installing hand sanitizing stations, installing sanitary door openers on washroom and kitchen doors, sanitizing POS system, and many more.

18. Reassure customers

As retaining customers are highly imperative for continuity of business operations, food service companies will need to efficiently communicate with their valuable customers regarding changes they may be making, share sanitization procedures, and encourage support. 

Food Industries Pandemic Survival

19. Using mode of communication

Any mode of communication such as website, social media, customized emails, and marketing advertisements can be used for the same. Of all these, targeted marketing campaigns can help companies in the Food Industries business to reach out to the audience with personalized messages.

20. Using reward or discount  measures

Analyzing past customer data and providing valuable customers with a reward or discount can help food service companies to retain valuable customers and increase online orders.

21. Learn to Manage profits

To manage profits and maintain productivity during this period.

Food service companies will need to understand the impact of the coronavirus outbreak in their business operations.

The next step involves making most out of the current inventory and reducing wastage of ingredients.

Food Industries Pandemic Survival

22. Look for financial support

During this critical time, some lenders and companies are offering hardship allowances.

So, companies in the food service industry can consult their lenders for allowances in rent and other utilities.

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