From obstacle to opportunity - here are some creative ways cafe owners can navigate COVID-19 restrictions, stay afloat and look after your staff this year.

 

As COVID-19 lockdowns continue and the proverbial goal posts seem to keep moving each day, as a cafe owner, manager or worker, you could be forgiven for feeling a little lack lustre. Both café owners and hospitality staff are starting to question their choices and look seriously at their options for the future, and that is an entirely rational response to what has become an exhausting situation that, for many, has been punctuated by loss and grief. But it's times like these that we are reminded of what's truly important. 

 

The light in the dark as the coffee community pulls together

With family roots buried deep in hospitality, the whole Crema family knows well the fatigue and stress that comes with living and working in a state of constant flux and uncertainty, but that same experience also reminds us that there are plenty of shining moments and things to look forward to, even when times are tough.

The demand for quality barista-made coffee and great food is not dead, and it won’t ever go away. Some amazing ideas and adjustments are already taking place. Collaborations between stores and engagement with community is at an all-time high. The feeling of comradery among the coffee-loving community is simply astounding. The deep generosity of humanity is on display at the moments we need it most.

The question now is how to survive long enough to make the changes and pivots required to see us through this latest wave. We know our community is behind us and stands ready to boost us back up the moment that they can. Customer swams cafes the second lockdowns are lifted. So how are we going to make sure we’re there on the other side, to take advantage of what will be an enormous return to trade?

With that in mind, we’ve put together some great resources and tips for café owners to explore as a COVID-19 survival tactic. From finance and marketing, to local programs and creative ideas – we’re here to make sure we’re in this thing together.

 

Keeping the lights on

While many of us took advantage of the 2020 lockdown by staying positive, and invested in things like café refitting and equipment upgrades, the strain on our finances this time around is a lot less easy to bear. So let’s get down to brass tacks – what financial help is there available to us?

 

COVID-19 relief grants for QLD and NSW

There are a few grants and funding options available to café businesses, and it’s worth making a comparison between them before deciding which one to apply for.  There are a quite a few Covid-19 Business Support Grants provided by the QLD government, and initiatives available in NSW via 2021 COVID 19 Relief Packages, and the main ones to look at include:

QLD Business Support Grants:

- If you are a Queensland-based non-employing sole trader who has had a decline in turnover of more than 30% due to the South East Queensland lockdown commencing 31 July 2021 or the Cairns and Yarrabah lockdown commencing 8 August 2021, you may be eligible for a one-off $1,000 grant

- A $10,000 grant to employing small businesses and not-for-profit organisations with an annual payroll in Queensland of less than $1.3 million

- A $15,000 grant to employing medium sized businesses and not-for-profit organisations with an annual payroll in Queensland between $1.3 million and $10 million

- A $30,000 grant to employing large sized tourism and hospitality focused businesses and not-for-profit organisations with an annual payroll in Queensland of greater than $10 million.

- Additional grants are available for certain other situations. Click here to find out more about all of the grants available in QLD.

NSW Business Grants:

- COVID-19 Business Grant – A payment of between $7,500- $15,000 for businesses whose annual turnover sits between $75K - $50M

- JobSaver Payment – A payment to employees of impacted businesses experiencing a decline in revenue of more than 30%, for businesses with an annual turnover of $75K - $250M. Eligible sole traders can also apply for up to $1000 a week in payments.

- 2021 COVID-19 Micro-business Grant – A grant for smaller businesses of up to $1500 per fortnight during the restricted trading period, who have an annual turnover of $30K-$75K.

- COVID-19 Disaster Payment New South Wales – This is a lump sum payment to individuals who have lost income or are unable to work due to pandemic restrictions. This is a great payment to share with staff who you may need to stand down, but business owners should take note that you cannot claim this payment for yourself while also applying for other grants.

Financial and business tips

If you’re lucky enough to have a business accountant, financial advisor or business coach on hand to request advice and assistance from – do it. Reach out get on top of a moving situation by accessing the highly trained resources you have access to.

Talking with local Newcastle accountant Nathan Price of Stream Accounting, one of the biggest issues facing hospitality businesses are limited cash reserves to weather a second extended lock down - "The Covid-19 crisis has highlighted the inadequacy of current cash reserves for many businesses. They simply don’t have enough cash to sustain the business in a crisis."

And his advice? If you don’t have a current connection on hand that you can turn to for direction and support, there are some great free services and resources to help you navigate the current environment and many accountants and financial advisors will offer free consultation – so take advantage of it.

Some great resources and free services include:

• Free financial counselling & advice via Moneysmart.gov.au
• Free financial counselling & advice via Newcastle Salvation Army program Moneycare
• Debt advice & support via the National Debt Helpline
• Free business advice via The Business Centre of the Small Business Support Centre in Newcastle

While tensions are high it can make addressing finances feel too much, but burying your head in the sand is one of the worst things you can do during this time. Bite the bullet and get ahead of the game by using the host of free support and advice there is available in Newcastle for café owners.

 

Survival cost-cutting - How to save money in a lockdown environment

There are a range of things business owners can look at to save money, change direction and cut costs during a lockdown,

“In terms of saving money, I'd suggest speaking with their suppliers to get a slowdown of products or longer payments terms, speak with their landlord about rent relief, and see if they can implement box deliveries to sell.” Nathan offers.

Some other ideas include:

• Reducing your menu to the essentials, and redesigning menus to have common elements to reduce wholesale ordering
• Cutting operating hours to peak demand periods to reduce overheads
• Asking staff to use their annual leave where willing
• Reducing staffing to the bare minimum, and communicating with customers about slower service times that result
• Join forces with other café owners to order produce together, minimising delivery fees and taking advantage of bulk discounts
• Pausing services with outside providers not deemed essential (for example, some staff may be willing to assist with cleaning and in-house marketing activities until cash flows improve)

While these are just some ways to cut costs, it will all start with having a good idea of what your current running costs are. Calculate your food, coffee, operating, staffing and overhead costs thoroughly so that you can clearly see ways to shave a little off each section. Even doing this before seeing a professional can save you money on financial assistance.

 

Looking after café staff – How to support your staff through pay cuts and unemployment

As every café owner knows, your staff keep your whole operation running. They’re the people your customers love seeing each day, they’re often highly trained professionals and they’re terribly hard to replace. Unfortunately, that doesn’t mean you’ll be able to keep them all on during an extended period being unable to trade properly – or even at all.

What you can do is be their source of comfort and support by providing them all the information they need to access financial support and information. You can also speak with them about the possibility of job-sharing to spread hours around, until full operations return.

QLD have some great employee assistance programs available.

And some of the information you can help them access in NSW includes:

• Understanding their rights at work
• Accessing disaster payments
• Assistance in finding a new job
• Help in learning a new skill if they need to retrain
• Getting mental health support

Your staff are relying on you to offer them the right advice and support through this time, and if you’re in a position to offer that you’re much more likely to be able to welcome them back as restrictions are lifted.

 

Changing it up – café ideas to help you move with the times

With great changes we are forced to adjust and grow, or tap out. And for many, the huge changes they need to make to their businesses means that it simply isn’t what they set out to do. In many ways, this pandemic has irrevocably changed the café and restaurant industry forever. It’s a moment in time mixed with great sadness for the loss of an era, and great excitement as we watch a metamorphosis we could never have predicted by those who are willing and able.

There are some great ideas out there to help you stay viable, including:

• Creating special deals and creating bundles on your most popular items
• Offering delivery on some menu items if possible
• Assessing your online presence, and whether online purchasing, ordering or other functionalities are something that could improve trade. Get some free advice from your local Newy web developers on the online options available!
• Collaborating with other local businesses on joint products or to share commercial spaces to reduce overheads
• Selling wholefood boxes and essential items such as milk, coffee beans and fresh food produce to customers, direct from your suppliers
• Examining your current café fit-out, and seeing whether some simple changes could make it more takeaway friendly and viable
• Engaging more on social media with customers, to stay in contact and keep spirits up – they’ll want to know when you’re open, what you’re offering and anything new on offer!

The biggest things that can help café owners navigate the current crisis and flourish going forward are maximising their digital presence, collaborating with other local businesses and making the most of their supplies. 

 

The Crema coffee takeaway during lockdown

If you can’t cry, laugh. We are Australians after all. We know that after every bushfire springs rapid new growth and space for changes to expand and unfold. As we support the café owners that are part of our Crema family, we are experiencing our own struggles and challenges. But we prefer to think of it as growing pains, because we’re truly seeing our Crema team pull some real magic out of hats. It is the most creative and innovative we have ever been, and in many ways it has made us feel the closest to each other and our customers.

 

Need a helping hand? Give us a call

If you’re a café owner and you’re struggling with how to make your way through this, we’re here for you. It doesn’t matter whether you’re a Crema customer or not, we have team members available who have extensive backgrounds in the industry and truly understand what you’re going through. So in the spirit of sticking together – if you need some free café advice, or just someone to talk to about your situation, you can give us a call and talk to someone who really understands.

 

The contents of the this article are not advice and should be used as a guide only. The article is a intended to give cafe owners ideas and avenues to explore when navigating these uncertain times. We recommend discussing your personal and business finances with your accountant or qualified financial advisor.