The year 2021 that just passed was not an easy year for restaurant operators. On the occasion of the end of the old year and to prepare for the new year that has just arrived, with COVID-19 still not going away, we would like to invite all restaurant operators to consider important lessons from the past year and listen to good advice from 'Chef Job-Nathinee Plodthong', restaurant consultant and expert, senior manager, Makro Horeca Academy To prepare for the year 2022!

2021 is a year where restaurants will be affected for a longer period than 2020 because many provinces have locked down and closed their stores for a longer period than before. What we saw clearly last year is…

● The proportion of delivery sales is becoming more important. This is a picture of continuous growth from 2020, when we still saw some restaurants happy not to adjust to delivery and patiently waited with the hope that COVID-19 would only be a temporary crisis. But as time goes on for almost 2 full years, it is clear that in the next 3-5 years, we may still have to live with this situation. And even though the storefronts are back open for service as usual, delivery sales of every store have not disappeared at all. This is because customers' behavior has changed, especially Work From Home or Hybrid Work, which makes working from home a new normal that still exists, ordering food during workdays is something that greatly meets customer needs.

● E-Payment has become normal. As everyone avoids accepting cash due to concerns about the spread of the virus, e-payments have become the norm for restaurants, big and small, and even food carts, which at the very least must have QR Payment or bank transfers. This does not include the use of e-wallets from various companies. Nowadays, we are starting to see both restaurants and beverage shops, especially those that target the younger generation, such as cafes, that do not accept cash at all.

● Restaurant labor shortage Both in the part of servers and kitchen staff, due to the closure of businesses and layoffs in the past, causing some foreign and Thai workers to move back to their hometowns or change careers, causing restaurants to still face a rather severe labor shortage, which is the source of the subsequent adaptations of restaurants, which is adjusting menus and services in order to use fewer employees and bringing in technology to help replace them, such as Using a 'Self-Ordering' system to allow customers to order their own food to reduce the need for waiters, or using semi-prepared, ready-to-cook ingredients to reduce the number of steps in the kitchen, etc.

What are the trends for 2022? What should we watch out for?

This year's trends will be driven by four main factors:

1. Opening and closing of restaurants in accordance with government disease control measures
After nearly 2 years of experience, I believe that all restaurants are becoming more flexible in their services, whether they are open for dine-in or not. The key factor that is the solution for this issue is to study techniques to increase sales on various delivery apps to have more opportunities to reach customers than before. And the food menu must also be in line with the behavior of customers who order delivery. Then it will be successful.

2. Adjustment of raw material prices
Raw material prices have been continuously increasing. In addition to the methods of price increases, It may be necessary to reconsider creating new menus by using lower-priced ingredients to maintain costs. and make the food have a range of prices that are not too expensive, so that customers have more opportunities and choices.

3. Contraction of purchasing power and household debt
For restaurants that are classified as extravagant or not for daily consumption, it may be more difficult. As customers have less money in their pockets and cannot visit our stores as often as before, it is time to try to find new business models. For example, the affordable street food group will give us the opportunity to generate cash flow during the weekdays when customers do not come to eat and socialize, because this group of restaurants usually has a relatively large kitchen and many employees. If you are afraid of the impact of the selling price being lower than the original store's price, you may choose to open a new brand online.

4. Labor shortage in the restaurant business sector
If the opening of foreign workers does not return to normal, restaurants must adjust and look back at our service procedures. Is there any area where technology can be used to help or reduce work steps in order to reduce the number of employees? For example, allowing customers to order and pay at the counter to reduce the number of staff taking orders and walking the bill, or adjusting the menu to make cooking more convenient and easier, or using semi-prepared ingredients to reduce the number of steps.

How should entrepreneurs adapt and prepare?

We can't expect COVID to disappear within the next year or two. So, over the past two years, there are many things that we can learn from to guide our future restaurant operations. The main things that we will share and can actually be used in restaurants at every level are:

1. Focus on expanding stores on a small scale.

- In such a situation, it is important to invest lightly. Low investment in construction, less labor, will result in a quick return on investment, and flexibility should be taken into account in case of opening or closing due to necessity.

- Food groups should still focus on the foods consumed daily. Not a big meal, a fancy meal, there is a better chance of making money in this economic situation.

2. Turn to use technology, innovation, and facilities as much as possible. Such as food ordering system via QR code scanning, using POS machines, using food serving robots (in restaurants with large spaces), using ready-to-use cut meat, using semi-prepared frozen ingredients.

3. Focus on sales and cost data. Focusing on generating sales and controlling costs at the same time will result in better store management. Therefore, Recording sales and analyzing customer demand to create promotions to stimulate sales, including analyzing food costs to control profits, will allow us to still make good profits in this situation.

4. Always update food costs in real time. Since the raw material prices change quite frequently, in the past we might have prepared a standard cost for each menu once a year without ever coming back to update the raw material costs. We might find that the actual data is slightly off. However, nowadays, with the frequency of raw material price updates, we should do it every month. Because if the standard food cost of the shop is not current, it will result in a large difference from the actual cost used and it will not be possible to plan and control costs well.

● The type of food must meet the requirements. Street food, Thai food, noodles, and Isaan food still dominate the market, as do coffee and bubble tea.

● Delivery services are expanding further outside the city. The shift to working from home will give more opportunities to rural shops near communities, while urban shops may have to work harder if customers don’t return to their offices.

● Teenage and adult customers make different purchasing decisions. That is, teenagers or working adults tend to focus on promotions, while adults are not very sensitive to price but look at value for money. Therefore, entrepreneurs must use data to create promotions that are right for and appeal to the target group.

● The identity of the online store must be clear. The menu must show that you are an expert in this field. Variety is good, but if it is too diverse, customers will not remember who we are because there are many restaurants displayed on one page of the app.

“With the changing income and labor market, many people are interested in becoming owners of a restaurant or beverage business. However, I would like you to ask yourself first. Here is a short checklist to prepare yourself before making a decision, as follows.”

● How much profit do you expect from your business per month? (Not income because once we know the expected profit, we can calculate it back to the store's income.)

● Have initial investment money And how much is the working capital?

● What types of food do you have expertise or expertise in? Because in this era, we have to invest lightly. The owner should have a recipe or be able to make it himself to pass on or teach to the employees, rather than expecting it from a skilled chef with an expensive salary.

● Who is the target customer group? Does it match the food you want to sell? And how many potential customers are there?

Experts like Chef Job also say that all 4 of these points are related to each other, which will be reflected in the projected income and the number of years it will take to get your investment back. Those who are thinking of investing should try doing just these things first. You may find that investing in something else may be more worthwhile, especially for those who do not have much money to invest or may have the last amount of capital they have.