This is the second in a series of posts about re-opening after the pandemic. Here’s the first one.

So, we all started examining our options as soon as we knew we were being permitted to open our businesses once again.

Most of us have run out of cash- the life blood of our business. (Before the pandemic, only 1 in 5 businesses could survive a 12 week shutdown.  Half were cashless 4 weeks into the shutdown.)  30% of our food establishments had missed rent/mortgage payments by week 4.

Not to mention the big guys.  Companies like Pier One, Hertz, J.C. Penney, Neiman Marcus have filed for bankruptcy.  The difference between them and us is that these guys were in trouble BEFORE the pandemic.  But, the quarantine meant they couldn’t shovel fast enough to get out of their holes.

As for us- we were OK; as a matter of fact, some of us were actually thriving before the SARS-CoV-2 reached America’s shores.  But, that’s changed.  So, now it’s incumbent for us to challenge our business model, our vision?  Are they still valid?  We’ve just been hit by tsunami- not just a wave.  And, not just us, but our clients, our customers.

If we have a dining establishment, the rules have changed overnight. Sure, our tables, our floors, our silverware were always cleaned.  But, maybe we didn’t change the towel each time we wiped down the table.  Or, we didn’t use disinfectant as we wiped down the table.  I’ll bet our dishwashers were set for 120F, the lowest level where our dishes could be cleaned- now we have to opt for 150 F, because 60 C will ensure that potential viruses (plus most microbes) won’t survive.  Will our image survive if we use plastic ‘cutlery’ and disposable plates?  (Will our patrons be willing to trust the ‘cleanliness’ of our fine china and silverware?   Should we offer our customers a choice?) How many of us are going to start using single-use menus?  (Note this gives us the ability to change prices to match our diminished capacity.) Not to mention that our capacity- our ability to serve our customers (and turn a profit)- has been cut by 4 (if we’re lucky, maybe only halved.)

The same applies to gyms and fitness studios.  Now, we must wipe down equipment after each use.  Plus, separate those massive units so that folks can be adequately distant from one another.  Probably also have to limit the number of simultaneous patrons.  And, here’s something I bet you didn’t consider?  All that huffing and puffing means your patrons aerosolize all sorts of things.  So, that air changer (part of the HVAC system) that was set for 3 or 4 an hour has to be ramped up to 10 times an hour.  Maybe even have a UV purifier added to the intake to ensure you are protecting your patrons.

Or, if you are a retailer, maybe you want to adopt the Best Buy practice.  (NOTE:  In many jurisdictions, these stores were labeled as “Essential Enterprises”, so they operated during the quarantine.)  Instead of having customers line up (around the block sometimes) waiting to enter the stores, BestBuy  started out by having you place your order, which was brought to the sidewalk outside the store, where one loaded up the purchase and drove away.   That was a good start- but, they’ve grown to a better concept, adopting the “personal shopper” concept.  You make an appointment,  and when you arrive, a concierge escorts you around the store, providing you information and assistance.  (Hear that MicroCenter???)

What about those of us working in business towers?   How many people are going to be allowed to use the elevator at once?  And, those carrels and open floor plans- where are you going to put up curtains or plexiglass shields to protect your employees?  How will you work out that 6 foot separation?   Maybe you will have your teams assigned different days of the week to come in- the Blue team works from home Monday, Wednesday, and Friday, with the Red team members coming in on Tuesday and Thursday; and then switches off the next week.  Conference rooms may be closed- but if we do alternate teams, we may need to add a bunch of computers (and network access) so that those working from home can also participate in these vital information transfers.  What about your kitchens/cafeterias?  Are folks going to be allowed to use their own coffee mugs- or will you demand the sensible (and far more costly) use of disposable cups?  (I bet some of you will actually close your food areas, because of potential congregating as well as keeping the equipment safe.)

Employee Testing

Here’s another issue- employee testing.  (This applies to all businesses, by the way.)  If you have fewer than a dozen employees, then testing each person is a pain, but doable.  But, as our employee roster size increases, it becomes more difficult.

So, how about pooling your employee tests. Collect individual saliva samples, but combine them in groups of 10.  Kitchen staff, wait staff, East Wing, West Wing, by floor whatever.  And, if you get (G-d forbid) a positive result, have all self-quarantine for a day as you retest each one individually. Then, once you find the person in trouble, examine how the others interacted.  Maybe have them stay home one more day – if there was virtually no interaction- and then retest them.    This saves testing resources, time, and money- yet still keeps everyone relatively safe.

As you can see, we need not only Dr. Adizes, but Colonel John Boyd to help guide us.  This Air Force genius applied what he termed OODA to the military.  That means we Observe our environment, Orient ourselves towards our competitors and clients, Decide what we are going to – RIGHT F…… NOW!, and Act.  And, then repeat the whole process.

We need devise thought experiments.  Consider what our “widget” offered, our service provided- one life cycle prior to where we were before the pandemic hit.  That could be a decade back in time, or if we are in the high tech business, it could be no more than four years (that’s the maximum life cycle of biotech and IT).  What did our innovation offer the marketplace then? And, then determine what we need to do to disrupt that innovation, to become the leader in our segment.

I alluded to pricing above, which is part of this process.  Which is another of our model components that need adjusting.  Because several things have changed (or are about to…)  Not only is our capacity diminished, our patronage attenuated- but many of us realize that minimum wages are changing in June, July, or September.

I have recommended to our dining establishment clients that they either maintain their old prices- with reminders to the patrons that their servers have taken a big hit and tipping really should begin at 20% for the foreseeable future.  And, since the menus will be less permanent, watch the patronage level and raise prices if the hoped-for “crowds” don’t appear.  (Another idea is to have a post-pandemic surcharge on the menu.  If we are at 25% capacity, then the surcharge is 20% to start.  But, we provide our patrons  a coupon with their bill providing them a 15% discount off their return visit in October (but reminding them that the servers still need that 20% tip.)  It works both ways- we are helped to open up and serve them now- and when things are better, we can return the favor- kind of like a future rebate.

How are your thinking caps feeling right now?

 

 

Here’s a great additional resource.  Because Andrew Cuomo has maneuvered New York State through the worst COVID-19 conditions around.  And, in so doing, has provided all of us with some great models.  So, consider where your business operates- and find a similar county in New York.  (By population, by proximity to larger markets, etc.)  And, then, maneuver yourself through the Business Reopening Tool that’s been developed for New York.  By County and NAICS code (which makes it really useful for each of our businesses.)

 

 

 

 

 

 

 

 

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