SA coffee shop feels the wrath of the COVID-19 lockdown
As South Africa is currently in a national lockdown due to the Covid-19 outbreak one of the many issues that businesses face is the decrease in customers and supply disruptions.
Fri, 03 Apr 2020 08:03:47 GMT
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AI Generated Summary
- The sharp decline in customers and supply chain disruptions has severely impacted Bean There, a prominent coffee shop in South Africa.
- To mitigate the damage, the company has pivoted towards retail channels, online sales, and cost-cutting measures.
- Bean There is actively seeking government relief funds and exploring new partnerships to navigate the challenges posed by the lockdown.
The COVID-19 pandemic has brought about unprecedented challenges for businesses across the globe, and South Africa is no exception. As the nation grapples with a national lockdown in an effort to curb the spread of the virus, many companies are facing a drastic decrease in customers and supply chain disruptions. One such business feeling the impact is Bean There, a popular coffee shop owned by Jonathan Robinson. With 90% of their business catering to the corporate market including luxury game lodges, boutique hotels, restaurants, and coffee shops, the sudden halt in operations has hit them hard. Robinson shared in an interview with CNBC Africa that their usual supply of around 10 tonnes of coffee per month has plummeted to a mere one ton during the lockdown period. This sharp decline highlights the seismic shift in the business landscape over the past few weeks, leaving Robinson and his team scrambling to adapt to the new reality. In a bid to stay afloat, Bean There has shifted its focus towards retail channels such as Pick n Pay, Spar, Takealot, and their own online platform to continue pushing out their products. While the challenges seem daunting, Robinson remains resilient and proactive in seeking out new partnerships and avenues to sustain his business during these uncertain times. One key strategy involves exploring collaborations with other suppliers to introduce their coffee into more households. Leveraging the power of e-commerce and online deliveries has also become a crucial part of their survival plan, as they capitalize on the essential nature of coffee in many people's daily routines. Furthermore, cost-cutting measures have been implemented, including salary reductions for staff members and negotiations with suppliers to tighten expenses. In a bid to access much-needed relief, Bean There is also applying for various government support packages aimed at assisting small and medium enterprises. With 30 employees in their Johannesburg roastery, Robinson is leaving no stone unturned in pursuing every available opportunity to weather the storm and emerge stronger on the other side. The resilience and adaptability displayed by Bean There reflect the broader challenges being faced by businesses in South Africa and around the world amidst the COVID-19 crisis. While the road ahead may remain uncertain, Robinson's proactive approach and willingness to explore new possibilities signal a hopeful outlook for Bean There's future despite the current turbulence.