Income in times of COVID-19
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1-min read
COVID-19 has arrived without warning, catching us all on the wrong foot, putting restaurant liquidity under maximum stress. There are many unanswered questions restaurateurs face today, although surely one stands out above the rest: When will I invoice enough again to be able to bear my costs?
John Maynard Keynes affirmed "the importance of money flows from it being a link between the present and the future". We'd like to suggest a simple example of how to boost your cash flow in these difficult times.
We are referring to gift cards or gift vouchers. Its main advantage lies both in generating income in advance and in driving traffic to the storewhen everything is normalised. On the other hand, they represent a big opportunity to attract new customers and reinforce your brand image.
According to a survey by First Data, “51% of respondents visited a store sooner than they would have otherwise, 33% spent more on a gift card than on a traditional gift, and on average, the end consumer ended up spending $23.41 beyond the original value of the voucher”.
Black Sheep Coffee, BrewDog Bars, or the prestigious chef Quique Dacosta with Arros QD in London, are just some examples of restaurants and coffee shops that have already launched this type of initiative:
Explain the cause driving your gift cards, such as supporting NHS staff or keeping your staff employed, emotionally connecting with your customers
Wrap them around specific themes or special events: Father's Day, offers for families with children, birthdays…
Associate them with experiences such as tastings (beer, coffee, your new menu...), cooking or cocktail classes and even a reopening party
If you already use Cheerfy, your most recurring customers and your promoters (according to NPS score) can be the core base to promote your cards through personalised communications, encouraging them to use them and share with family and friends.
Interesting? Get in touch. Always here to talk. #StaySafe
Tony @ Cheerfy