Published: 15:36, July 15, 2020 | Updated: 22:22, June 5, 2023
Outside the box
By Peter Liang

Stung by the third wave of coronavirus pandemic which is turning into a dreaded community outbreak, Hong Kong people are beginning to realize that social distancing is becoming a new normal they have to live with for a long time to come.

Businesses, too, will have to adjust to the new way of life of their house-bound customers many of whom are getting accustomed to working from home and going out much less than before for shopping and entertainment.

Interviewed on television, a restaurant owner lamented that takeout sales would only account for less than 30 percent of his gross income. He said that his restaurant wouldn’t be able to survive the restricted lockdown for more than three months.

But he was basing his dismal forecast on a business model that obviously wasn’t going to work under the present circumstances. If he’s serious about staying in business, he would have to make some drastic changes.

He can start by cutting costs as everybody else is doing. With the government subsidies, he is supposed to keep his staff. But if he is switching to takeout and delivery, he won’t be needing to pay rent for the now-empty premises in a busy commercial district. The savings in rental can go a long way in keeping his business alive.

Indeed, many eateries, especially those in central office district, are promoting their takeout services by taking online pre-orders and offering discounts. Many more have signed up with the major food delivery services, something they were reluctant to do before because of the steep charges.

Many retailers have also seen the need for what is sometimes called “do or die” reform by shifting the emphasis to online from in store sales. Some are actively promoting sales online in Facebook and other social media platforms. But not many of them have developed their own apps.

Those that have are clunky and offer little payment choices to consumers other than the most popular credit cards. But the more established online retailers, including HKTV Mall and Yoho, that offer reliable services to customers are reportedly doing exceedingly well.

Making drastic changes does not come easy to business owners. But those who are willing to try, the future can look bright.