The past few years have led to numerous changes across multiple industries, and one of the biggest trends has been the growth of online businesses. Even though this has been a growing trend since the inception of the internet, it has accelerated quickly, thus impacting multiple industries - especially retail stores and restaurants.
A recent trend for large retail establishments has been downsizing their footprints to become more efficient, eliminate waste, and better meet the needs of their customers. If you are thinking about downsizing retail and restaurants, what do you need to know? How might this benefit your establishment?
Downsizing Retail: The Advantages
The vast majority of people use the internet when they are looking for products and services they require. This includes retail items that are traditionally sold in stores. For several years, brick-and-mortar retail sales numbers have been dropping, including on Black Friday. Even though online retail sales have been growing, there is still something to be said for the classic feel of shopping at a store in person, which is why sales at smaller stores have been growing. The trick is to expand online operation capabilities and order fulfillment, without completely eliminating brick-and-mortar stores.
There are a number of benefits that come with downsizing retail establishments for smaller geographic footprints. First, this allows businesses to reduce their overhead expenses. Even though some retail establishments can be tens of thousands of square feet, smaller establishments may only be a few thousand square feet. This reduces real estate expenses while also reducing the number of people that must be hired to keep them open. In addition, businesses are not necessarily limited by their geographic location, as they can ship their goods to just about any location in the country. Furthermore, businesses might be able to expand the products and services they provide because they are not limited by the products sitting on the shelves. For all of these reasons, downsizing a retail footprint can be beneficial.
Downsizing Restaurants: Off-Premise Dining
The downsizing trend is happening in restaurants as well. Restaurants have been hit hard during the past few years, and many of them have had to evolve their operations. This has led to the growth of ghost kitchens. Instead of having to purchase space for chairs and tables, restaurants only have to purchase space for a kitchen. Then, patrons can pick up their food or have it delivered.
This allows restaurants to save money on equipment, space, and staff while still providing delicious food for their customers. With more people looking to purchase food digitally, the concept of ghost kitchens will continue to grow. An online presence is part of the everyday equation for the foodservice industry, and many restaurants are downsizing their geographic footprints in an effort to keep up with changing customer demands.
How To Downsize Effectively for Restaurants and Retail
In both the restaurant and retail industries, it is important for businesses to downsize carefully. Brands need to make sure they stick to their identities- even as they downsize. Most restaurants and retail stores have an established signature look, and they cannot be lost during the downsizing process.
Furthermore, even though the geographic footprint might be smaller, it is not completely eliminated. Patrons still need to have a seamless experience regardless of whether they are ordering something online or visiting the establishment in person. There is a greater pressure on restaurants and retail stores to have a physical display that matches the online presence, which is why both industries must ensure they have the right equipment to carry out their daily operations.
Randal Retail Group has been in the retail and restaurant space for over 40 years and we've seen many trends come and go during our time. We'd like to share our blueprint for success with you. Simply click below to see our quick and easy do's and don'ts of design.
