Practical Lessons from the Great Recession
With the possible exception of the bill-collection business, virtually every sector of the economy has been negatively impacted by the current recession. But perhaps none more than the hospitality industry, and especially the restaurant business.
It is a simple truth that, when money is tight, people (even current generations) will splurge less and stay home more. In reaction to this fact of life, area restaurateurs have responded with determination and imagination, necessary ingredients if one is to not merely survive but somehow thrive in these challenging times.
As outlined in a piece in BusinessWests annual Restaurant Guide (page 23), steps taken have been as varied as the items on a typical dinner menu; from reducing lighting and energy costs to expanding the menu with lower-priced items; from cutting down on printing costs to staying visible through aggressive, targeted marketing.
Restaurateurs typically run a tight ship they have to because margins are so low to being with but these days, that ship is much tighter.
The hospitality sector is certainly not alone in its creative, determined response to the softened economy and its ongoing implications, but its actions serve as strong testimony to the fact that, while this recession is in all ways painful, there are practical lessons to be learned from it, and ones that could help this region become more competitive in the long run.
The biggest lesson, clearly, is that companies shouldnt wait until the storm is upon them to look at their operations and devise ways for them to run more efficiently and creatively. This mentality should prevail 24/7/365, regardless of whats happening with the economy.
But as everyone knows, reality is different. Companies and the people who manage them tend to become complacent when times are better. Theyre less concerned with how long the air conditioning is on and what the thermostat reads when people go home for the night. Theyre not as likely, perhaps, to market themselves aggressively and remain visible because they believe the business will find them. And theyre not as willing to look at a department or a division and wonder whether it is properly staffed and if the same amount of work can be done with fewer people.
It is when times are tough that people turn over every rock in search of ways to cut expenses and increase revenues. As one restaurateur put it, this is the time for everyone in an operation to think like an owner.
Hes right, of course, but the time for such thinking, for such a mindset, is all the time.
And if area business owners and managers can learn this lesson, then maybe there will be something actually gained from whats being called the Great Recession.
Indeed, newspapers and business magazines often run collections of stories on businesses large and small surviving a recession. They are replete with tales of business leaders being daring and entrepreneurial as they blueprint ways to do what they do better, to reach new audiences, and cultivate new groups of customers.
Add it all up, and it seems that people in business do their best, most creative, thinking when their backs are up against the wall and their survival is quite possibly at stake.
What we hope people take away from these troubling times is that they dont have to wait until trouble strikes to be entrepreneurial or to really think like an owner. If they act in such a manner during all economic seasons, then this region will have better, stronger small businesses and, overall, a much more resilient economic base.
