TRSA COVID-19 Update – Focus on Recovery, Retention
TRSA aired its latest Weekly Industry Update webinar on May 7, with an emphasis on regulatory guidance aimed at helping F&B and hospitality operators recover. Other prominent news reports included highlights of a new Business Pulse Survey of industry suppliers and insights from an industry consultant on marketing in today’s “new normal” economy – with added attention to customer retention, diversified product offerings and much more.
In a follow-up to a recent announcement of a campaign aimed at local, state and federal officials on rules for reopening restaurants, TRSA Vice President of Government Relations Kevin Schwalb reminded operators of the importance of speaking out to local officials on the information recently circulated by TRSA. That guidance calls for the use of rental uniforms and table linens to reassure restaurant patrons that they can dine out safely. Schwalb said it’s important to let public officials know that these documents are out there, and that linen, uniform and facility services companies are ready to help America’s restaurants to reopen safely and once again, thrive. “Let them know the important role that our industry plays in safe, clean environments, both in the food-and-beverage industry sector as well as the hospitality sector,” Schwalb said. Click here for details.
Schwalb also clarified a question from members about the Paycheck Protection Program (PPP) and whether operators can still have their PPP loans “forgiven” if they try to rehire employees, but they decline to come back to work because the benefits they receive are more lucrative than what they would make by working. “If employees turn down a job because they’re making more money on unemployment in the current unemployment insurance as well as the bonus that the CARES (Coronavirus Aid, Relief and Economic Security) Act provides, as long as you keep records showing that you have offered that employee the job to come back, it will not count against the forgiveness calculations of your loan,” he said. Schwalb added that TRSA posted guidance information in early May that can help answer operator questions. Click here for details.
In other news, Jason Risley, TRSA’s senior editor for digital/new media, detailed findings of TRSA’s latest Business Pulse Survey of Associate Members. The surveys of both operators and associates are circulated every 15 days. A new survey of operator members recently was distributed. TRSA will report findings from that survey shortly. As for the supplier survey, Risley noted that the downturn in business has fueled requests from linen, uniform and facility services operators to renegotiate payments on various purchases of equipment and other goods. The survey noted that 90% of supplier customers were pursuing some form of repayment-plan changes to help them get through the COVID-19 downturn in business in all sectors, but especially in the hotel and restaurant segments of the industry.
To help those operators boost their sales, the webinar featured a guest speaker, Anna Walker, marketing manager, Cosgrove Partners, Indianapolis. She advised operators to shift their focus to customer retention rather than outreach to new business, given that sales calls are largely limited due to social distancing. Besides, most businesses are feeling super-cautious and are less likely than normal to take a chance on new vendors – provided they’re getting good service and competitive prices. Walker suggested that operators take an empathetic approach to customer relations, offering extra service and flexible payment plans if requested. This makes business sense because surveys show that existing contracts are five times more profitable than new customers, she said. In addition, it can take 12-18 months for a laundry to recoup its investment on the new textiles needed to service new rental customers. “There are opportunities for increased success for your business right now,” Walker said. “Things have been hard, but there is also great potential for your business in this season if you can capture it.”
To do that, Walker also recommended diversifying your product lines. For example, companies may consider adding more direct-sale items such as scrubs or other garments, that can easily be added to an existing rental order. In another point, Walker said to make sure that websites and other e-commerce technology is as user-friendly as possible for customers. Don’t give these customers any reason to look elsewhere to fulfill their needs, she said. Especially now.
TRSA President and CEO Joseph Ricci opened the webinar, noting that he continues to conduct regular calls with association counterparts in a number of European countries to compare notes on how they’re responding to the COVID-19 downturn. One interesting point was that several European countries, such as Italy that have a higher percentage of reusable barrier and isolations gowns than the U.S., are having fewer problems with PPE shortages than the U.S, which relies on disposable PPEs for roughly 90% of its needs. Italy and other European countries have closer to a 50-50 of resuable vs. disposable gowns. Ricci and Schwalb are working with U.S. government and healthcare officials to encourage a more diversified supply of reusable vs. disposable PPE to safeguard hospitals from future shortages that hundreds of healthcare providers have reported in recent weeks.
Ricci, who serves as emcee for the webinars, also urged the nearly 100 registrants for the May 7 webinar to stay tuned for future editions of the TRSA Weekly Industry Update, which recently began airing each Thursday following the eruption of the COVID-19 crisis in mid-March. In all, TRSA has aired more than 20 webinars on a wide range of virus-related topics since the pandemic began. Click here to review the tentative lineup for presenters and subjects that will be offered in the coming weeks. A recording of the May 7 webinar is available at TRSA’s On-Demand Learning Center.