The Struggles of a New Business
A friend of mine was helping out at a relatively new pub/bar establishment. This business was in the early stages of its journey, working hard to build a brand and turn a profit. They frequently posted on social media to build awareness, and the owners worked tirelessly to make it a success.
Running a business is never easy, especially in the food and beverage industry where many goods are perishable, rent can be high, and staff can be expensive. However, this business faced an even greater challenge: COVID-19.
How COVID-19 Devastated the Food and Beverage Industry
With fears of catching COVID-19, people avoided socialising in public and opted to isolate as much as possible. Even before mandatory lockdowns, people began working from home and stocking up on essentials such as medicine, long-life food and of course, the most essential item of them all, toilet paper.
Using data sourced from the Office of National Statistics, we built the following graph to illustrate the significant impact COVID-19 had on the food and beverage industry.
Now imagine being this business, or perhaps this story already resonates with you. The hospitality industry was in peril, with widespread layoffs and business closures. The challenges brought by COVID-19 were immense.
The Aftermath of COVID
Miraculously, whether due to careful planning and execution or sheer luck, this business survived COVID-19. However, the battle was far from over. Many people still avoided eating out, fearing the virus. While lockdowns were lifted, COVID-19 remained a concern.
As people gradually became more comfortable with being outdoors, the hospitality industry began to recover. Yet, the business continued to struggle. However, the business continued to struggle.
Why Don't They Just Sign Up to OpenTable?
Curious about the situation, I asked my friend who knew the owners well, "Why don't they just sign up for OpenTable?"
"OpenTable is expensive" he replied.
Surprised, I researched the prices of OpenTable and similar platforms. Initially, I didn't think it was too costly, but then I realised that a monthly fee could be a significant risk for a business already struggling with awareness. This pub didn't feel comfortable taking that risk, and if one business found it too risky, other restaurants, cafes, bars, and pubs likely felt the same.
After compiling prices for online reservation systems, I decided to offer something that eliminates that risk and is affordable. Thus, Make a Rezzy's price point of £1 per cover was born.