The Mercury News

Owners seek creative ways to serve customers

As stores and cafes reopen, owners look for new ways to serve customers

- By Joyce M. Rosenberg

NEW YORK >> Many business owners are changing the way they make money as they attempt to recoup revenue lost to the coronaviru­s outbreak.

The changes can look subtle; for example, when owners of clothing stores decide to beef up their internet business. But often such adjustment­s involve an entire rethinking of the business model — the blueprint that encompasse­s the key aspects of running a company — with significan­t changes to staffing, technology and inventory.

For many companies, it’s a matter of survival, but for others, the changes have been a silver lining amidst the crisis.

When Big Bottom Market, a cafe and food shop in Guernevill­e, California, closed in mid-March, “I had to take stock of what we had and think about how we could evolve the business,” says co-owner Michael Volpatt.

Volpatt started a daily cooking show on Facebook in hopes of drawing customers to Big Bottom’s page on the online marketplac­e Etsy.

He succeeded: Daily visits jumped 66% and customers stocked up on merchandis­e including biscuit mixes, coffee, preserves and T-shirts. That revenue from Etsy covered Big Bottom’s monthly rent, utilities and insurance.

The cafe, which gets business from visitors to California’s Sonoma wine region, reopened with social distancing steps May 8, selling meals and merchandis­e at the door. Business is down 80% from its usual pace — the café can normally seat 40. During the week, the cafe’s business is mostly from people who live locally, but the weekends bring people from all over the Bay Area.

Volpatt doesn’t know when he’ll fully reopen the cafe but going forward he expects to get substantia­l business from the internet. He’s even hiring a staffer to help build Etsy sales.

Four months after launching the Velvet Window clothing store in Dallas, Amy Witt was forced to close its doors. She soon realized she’d need to adjust her approach to ensure customers came back when the store reopened.

“The forced closure gave me the opportunit­y to say, ‘what’s wrong with my busi

ness. How do I fix it?’” Witt says.

Before the outbreak, 85% of Witt’s business came from shoppers coming into the store. With the shutdown, she realized she needed to be more aggressive with social media to draw shoppers to her website; she needed revenue and to engage with her customers. She taught herself and her staff how to make Velvet Window more visible in internet searches. She picked up new customers, including some outside the Dallas area.

As she prepared to reopen May 1, Witt concluded she had to offer more services and accommodat­ions in a retail environmen­t reshaped by the outbreak. So she set up private shopping hours for some customers — for example, those most at risk for complicati­ons if they contract the virus. She’s using video or messaging apps to show her fashions to others anxious about coming to the store. Curbside pickup or deliveries can also be part of the deal.

She sees all these steps as elements in a new business strategy: “It’s something we will continue to offer” even after the current crisis ends, Witt says.

Overhaulin­g or refining a business model should be an ongoing part of running a company; even successful owners often think about making adjustment­s. But any crisis forces owners to reassess their business. After companies were forced to lay off staffers during the Great Recession, many turned to freelancer­s when they began hiring again. That saved money on salaries and benefits and gave owners more flexibilit­y.

Business models are

likely to undergo significan­t changes in the coming months given the damage to the economy from the outbreak. A lot of uncertaint­y remains about how much consumers will be willing to spend, travel, dine out and go to sports and entertainm­ent events — and when social distancing measures that limit business will be lifted.

Before the outbreak, D’Artagnan sold most of its high-end meats to restaurant­s where customers might pay $50 for filet mignon or dine on exotic varieties such as squab or quail. But with restaurant­s closed, half the company’s business is now from people buying meat to cook in their own kitchens or on the backyard barbecue. That means the Union, New Jersey-based company ships smaller cuts and packages of beef and chicken to consumers rather than the larger cuts and whole animals it delivers to restaurant­s.

“It’s a very different demand in the kind of animals people buy to cook at home instead of ordering in a restaurant,” owner Ariane Daguin says. The changes mean different procedures for butchering and packaging the company’s products.

D’Artagnan’s e-commerce business, which accounted for 10% of revenue before the outbreak, is up five-fold, says company

president Andy Wertheim. The company won’t know until restaurant­s are operating again what their demand will be, or whether people will continue to do their cooking at home. But, Wertheim says, D’Artagnan is prepared to have a different business model going forward and increase its staff to get the work done.

The changes at some companies have come from serendipit­y rather than crisis. At law firms, shelter-inplace rules have forced attorneys to meet with clients over video rather than in a traditiona­l office visit.

Attorney Katherine Miller’s work includes mediation in divorce and family law cases. She says the virus outbreak has chipped away at clients’ reluctance to hold meetings online. She plans to use that change in attitude to expand her practice.

With the use of video meetings, it will be easier to coordinate schedules when all the parties don’t have to travel, and Miller will have less travel time when she attends meetings. And she won’t be limited to her current practice area, New York City and its northern suburbs.

“I used to think, this is going to be an uphill battle to convince people that it’s a good idea. But now because of the coronaviru­s, I don’t have do that anymore,” she says.

 ?? PHOTOS BY LM OTERO — ASSOCIATED PRESS ?? Amy Witt, owner of the Velvet Window clothing store in Dallas, steam-sanitizes items that have been tried on by customers. Small businesses are navigating different ways to work with customers amid concerns after the spread of the coronaviru­s.
PHOTOS BY LM OTERO — ASSOCIATED PRESS Amy Witt, owner of the Velvet Window clothing store in Dallas, steam-sanitizes items that have been tried on by customers. Small businesses are navigating different ways to work with customers amid concerns after the spread of the coronaviru­s.
 ??  ?? Customer Monique Kursar, left, completes an in-store purchase. Witt, right, also uses video or messaging apps to show her fashions to others anxious about coming to the store.
Customer Monique Kursar, left, completes an in-store purchase. Witt, right, also uses video or messaging apps to show her fashions to others anxious about coming to the store.
 ?? LM OTERO — ASSOCIATED PRESS ?? Amy Witt, owner of the Velvet Window in Dallas, wipes a credit card reader after completing a sale.
LM OTERO — ASSOCIATED PRESS Amy Witt, owner of the Velvet Window in Dallas, wipes a credit card reader after completing a sale.

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