Business
How grab-and-go food chains are adjusting to coronavirus reality
NEW YORK/LONDON (Reuters) – Restaurants devoted mainly to quick bites and drinks are reconfiguring their businesses to limit traffic in tight quarters and maintain coronavirus social distancing.
Starbucks Corp (SBUX.N), Dunkin’ Brands Group Inc (DNKN.O), Peet’s Coffee and British bakery-cafe chain Greggs PLC (GRG.L) have been forced to rethink how to serve customers quickly while keeping staffers safe and still make enough money to operate.
At Peet’s Coffee, the U.S. chain owned by JDE Peet’s JDEP.AS, 191 of the 250 company-operated stores had reopened as of Thursday. But customers aren’t allowed inside.
“We moved all of the tables to the front of the store, blocking the entrance,” said Mary Dusenbury, senior director of retail marketing at Peet’s. Registers and chip readers were also moved to the front, so customers can perform their own credit-card transactions, with chip pads wiped down after each guest. In Britain, where Greggs has been testing reopenings at 20 locations, only one adult customer may enter at a time. The menu features fewer salads, and only credit cards and other non-cash payments are accepted.
After closing 2,050 stores in March, it hopes to reopen 800 stores from June 18.
The chains aim to keep at least six feet of space both between staffers working behind the counter and between customers lining up at the door.
But it is not clear that customers will be prepared to wait in long socially distanced queues outside, even to get one of Greggs’ popular vegan sausage rolls, which had helped fuel an 80% rise in Gregg’s share price before the crisis hit.
Companies’ profit margins will be squeezed this year by extra costs for employee hazard pay, cleaning and protective gear, as well as lower sales.
That could lead restaurants to raise some menu prices, said Alex Susskind, a professor at the School of Hotel Administration at Cornell University.
However, with restaurants having already hiked menu prices over the last few years and cash-strapped consumers likely unable to pay more, “passing along price increases is going to be very difficult,” said David Portalatin, a food analyst at The NPD Group.
To keep customers from lingering, chains are encouraging using cell phone apps to order and pay or opting for drive-thru or delivery.
In China, delivery and mobile ordering at Starbucks made up 15% or all orders in January when the crisis was spreading. Mobile orders peaked at 80% in February but remained at 27% in late March, according to a McKinsey & Co report on May 19.
More than 98% of Starbucks locations are open in China, and more than 90% of its company-owned U.S. locations are expected to be open by early June under modified operations and hours.
There are signs the new strategies are working.
Starbucks in late May said it had regained nearly two-thirds of its comparable U.S. stores sales from the prior year, and in China it said comparable-store sales reached about 80% of the prior year levels. The U.S. and China are the company’s two largest markets.
Greggs has begun to test delivery through Just Eat (TKWY.AS) and pickup through Click & Collect. But analysts are skeptical.
Most of its outlets are tiny, making it a challenge to keep staff and customers far enough apart. Selling in the high volumes Greggs needs to make its model work could also prove difficult.
“Queueing at 2 meters distance outside the store is going to lose its novelty very quickly for even the biggest sausage roll addict,” said Peel Hunt analyst Jonathan Pritchard.
Reporting and photo: Reuters
Maldives on Thursday welcomed the one millionth tourist to visit this year.
The one millionth tourist is a Thai named Sutapa Amonwivat, who arrived from Singapore with her husband and two children. This is her second visit to Maldives.
Maldives Marketing and Public Relations Corporation (MMPRC) and the Ministry of Tourism gave a warm welcome to Sutapa at the Velana International Airport (VIA) Thursday afternoon. She was welcomed at the VIA by tourism minister Ibrahim Faisal, MMPRC Managing Director Ibrahim Shiury and senior officials of various relevant agencies.
After welcoming her with traditional offerings, she was presented with various gifts by the ministry, MMPRC, customs, immigration, Maldives Association of Travel Agents and Tour Operators (MATATO) and Trans Maldivian Airways (TMA).
Maldives reached one million tourists in June, three weeks earlier than last year. The number of tourists reached one million on July 16, 2023.
Maldives expects to reach 2 million tourists this year.
Chongqing Airlines on Monday began its inaugural flights to Maldives.
The Chongqing-Male route, scheduled three times a week, is expected to strengthen the bonds between China and the Maldives, opening up exciting new opportunities for tourism and cultural exchange.
The inaugural flight was welcomed upon its arrival at Velana International Airport (VIA) in Maldives, where local officials and tourism representatives expressed their enthusiasm for this new development.
“We warmly welcome our friends from China to our beautiful islands. This new connection strengthens our bonds and opens up new opportunities for tourism,” the tourism ministry said on X.
Maldives currently welcomes four airlines from China, including China Eastern, Beijing Capital Airlines, Xiamen Airlines.
In January, Maldives government urged tourism stakeholders in both Maldives and China to ramp up efforts to restore China’s position as the primary source market for Maldives tourism, a status held before the onset of Covid-19.
China, being the largest source market for Maldives tourism before the pandemic, saw a resumption of tourist arrivals from January 2023 after a three-year hiatus due to the pandemic. In 2023, the Maldives welcomed 187,118 Chinese tourists, marking a significant recovery in numbers. This year, the Maldives has welcomed the most number of tourists from China, with over 107,940 or 11.5 percent of total arrivals by June 12.
CROSSROADS Maldives has introduced WeChat Pay, widely known as Weixin Pay in China, across its world-class resorts, SAii Lagoon Maldives, Curio Collection by Hilton, and Hard Rock Hotel Maldives. This payment option is made available to enhance the convenience and overall experience for guests from China, making their stay in the Maldives more enjoyable and hassle-free.
Understanding the needs of the diverse guests, CROSSROADS Maldives has integrated WeChat Pay into operations, allowing guests from China to easily and securely conduct transactions using a payment method familiar to them. The introduction of WeChat Pay is a testament to CROSSROADS Maldives’ dedication to enhancing guest satisfaction by offering exceptional experiences at every turn. What is also expected through this initiative is that the guests could benefit from better foreign exchange rates, translating to better savings on their expenditures during their stay.
The option is available for guests in-house conveniently at both resorts as well as across the Marina at CROSSROADS Maldives where a wider variety of unparalleled dining and retail experiences are available for all guests. The day visitors from China will also therefore equally benefit from this new introduction at the Maldives’ premier multi-island integrated leisure destination.
SAii Lagoon Maldives, Curio Collection by Hilton, is a vibrant tropical escape that offers unique and locally inspired experiences. The resort features spacious rooms and villas, a variety of dining options, and an array of recreational activities designed to cater to the desires of modern travellers. Guests can escape to the island’s SAiisational natural beauty, enjoy water sports, and indulge in spa treatments, all while relishing the personalised service that defines Hilton’s Curio Collection.
Hard Rock Hotel Maldives brings the iconic Hard Rock spirit to the tranquil shores of the Maldives. This family-friendly resort offers a perfect blend of relaxation and entertainment, featuring music-inspired experiences, live performances, and the brand’s signature amenities. With luxurious accommodations, diverse dining options, and a plethora of activities for all ages, Hard Rock Hotel Maldives ensures an unforgettable holiday experience for every guest.
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