24/09/2020 by Jasmine de Guzman
Small Business Bulletin: The State of SMBs, Restaurants & Supporting Local
With Q4 just around the corner, it’s important to take a cold, hard look at just exactly how SMBs are faring. It’s been a year like no other - a year that no one could predict - and more importantly a year that no one was prepared for.
As we as an industry discuss the acceleration of SMB SaaS adoption and analyze the latest impact of COVID-19, small business owners are faced with the everyday realities of changing regulations and making ends meet. Throughout the rest of 2020, we’ll be putting together this #SupportingLocal Bulletin to focus on understanding the challenges of the small business - as well as what we as an industry can do to help them.
The state of small business
Let’s start off with the state of small businesses. This pandemic has shown us how passionate and resilient small businesses owners are. Many business owners transitioned their businesses overnight - from going online, to offering delivery to finding creative new (and digital!) ways to offer their products and services.
And while we love hearing the heartwarming success stories, the reality is that while many small businesses may have weathered the initial COVID-19 storm - they are now faced with trying to survive a second wave. Back in June, McKinsey published an article on the potential vulnerabilities of small businesses due to COVID-19, and restaurants were identified as the most highly affected industry.
The restaurant industry
So how are restaurants faring now? Well let’s take a look at a few recent statistics:
- According to the National Restaurant Association in the U.S., 100,000 restaurants (one in every six) has permanently closed after just six months into the pandemic
- This concern for restaurants surviving this fall/winter was also echoed during the live panel session on the world of restaurants and food delivery at the recent Localogy 20/20 virtual conference
- Recent data from the restaurant review platform, Yelp, has also shown a 60:40 split between permanent vs. temporary restaurant closures.
- And lastly, using data from wave V-III of their Modern Commerce Monitor - Localogy did an industry brief on the restaurant industry which showed that while 65% of restaurants had transitioned to offering takeaway and curbside pick-up - a whopping 35% have not.
So what can we as an industry do to support restaurants - as well as other local businesses?
Continuing to #SupportLocal
As an industry, it’s our duty (now more than ever) to band together to help local businesses survive. A few key tips for supporting restaurants:
- Be their biggest fan - Ensure you’re bringing awareness to the need to #SupportLocal
- Updated digital presence - Help them update their website with accurate opening hours, a COVID-19 FAQ page, a takeaway menu or anything else that will help them run their business digitally!
- Online ordering - Set up an e-commerce option for them that allows them to accept online orders and payment directly on their website, as well as facilitate time slots for curbside pick up
Want more tips on how to support local? Join us for our webinar on Wednesday, October 7 where we’ll focus on “Boosting SMBs during the second COVID-19 wave” at 3 p.m. (CET)/9 a.m. (ET).
P.S. Stay tuned for more #SmallBusinessBulletin posts this fall