Answer to Question #165233 in Microeconomics for Waleed

Question

Imagine you are owner of a fast food joint . What are the challenges you faced during Covid-19 pandemic? How will you overcome challenges in order to sustain business?

Answer 1

Challenges:

As the pandemic became more evident, and as businesses began closing up because of the infectious rate of the virus, people began staying at home and leaving businesses especially fast food joints, like mine, facing the risk and certainty of closing down due to low patronage. As the country works towards reducing the rate of infection through many stay at home orders, many people who are used to ordering for fast food became more independent as they take up cooking their personal food ( which they believe to be more effective in helping to spend more time with their families and loved ones). This has the effect of reducing the demand for fast food, profit and employment of waiters and dispatchers. Others challenges faced include making food for few or almost no customers leading to wastage, low profit for the business, high cost of maintaining the business like paying for wages of employees and other statutory payments, and the eventual closure of the business if things continue to be the way they are.

In overcoming these challenges, the government could help with stimulus packages which are intended to help small businesses such as the fast food joints, giving tax holidays or holding up remittance of tax payment. To sustain the business, business owners should reduce staff size, and give incentives to customers who remain like volunteering to help deliver foods at home. This has the advantage of keeping the customers to the business and sustaining them till stimulus packages are available from the government

Another viable option or suggestion for the business is to go full digital. Creating a digital channel or platform for the purchase of their food will help reduce the spread of the virus as few, if not almost none, people will be physically present to purchase fast food. This option also has the potential of increasing the rate at which customers are attended to and also allows the business to get reviews from their customers.