Can you operate profitably during the pandemic?

Restauranthuset Sumo currently has 9 Asian fusion restaurants spread across Bergen, Oslo, Stavanger and Jessheim, and is a restaurant concept in strong growth. Already on March 13, 2020, the day after the pandemic was a fact in Norway, Jan Abrahamsen and the rest of the Sumo management gathered to find out; what do we do now to maintain as many jobs as possible? The result was a restaurant chain that has made money so far throughout the pandemic, while all rules and recommendations from the authorities have been followed and complied with.

Jan Abrahamsen, operations director at the Sumo chain

Spent extra money to appear

When normal restaurant operations became impossible, it became crucial for Sumo to focus on the take-away concept, which was already well established before the pandemic. However, the sales volume was not enough for profitable operations, and something had to be done. Jan Abrahamsen says that Sumo increased its marketing budgets considerably, and realized that it had to invest extra if it was to have any hope of securing profitability. Extra investments in times of crisis can often feel risky, but Jan says that extra marketing would be crucial.

Take-away ensures profitability

In a normal year, takeaway accounts for between 20 and 30% of the chain's sales volume. During periods in 2020, Sumo has experienced a doubling of takeaway sales. This increase was supposed to ensure that the chain was able to keep all branches open, despite declining sales in the restaurant. Jan goes on to say that having to close the doors completely was something they worked very hard to avoid.

– It often costs much more to unlock a closed door than to try to keep it open, or at least ajar, says Jan.

Systems must be in place

To operate a takeaway business efficiently and profitably, it is crucial to have good ordering systems that are intuitive for customers and that are also flexible and efficient in communicating with the kitchen and the cash register system. By using the right system, and not least using the system correctly, the entire ordering and purchasing process is automated. There are several app-based takeaway solutions, and this must be in place to achieve the best possible profitability. The customer can relax and let themselves be tempted at home on the couch and put together their dream meal. With the right setup of the systems, you will also be able to achieve significant additional sales. In principle, an investment in an ordering app will always pay off, and the additional sales will finance the investment.

Delivery services like Foodora and Wolt

Jan Abrahamsen says that Sumo also uses delivery services. This can be a nice addition to additional sales, but here you have to spend some time calculating calculations and profitability. Such services can often eat up a lot of profit, but with the right menu and pricing, such services can create extra profitability on top of your own take-away concept.

2020 a good year

When Jan and the rest of the Sumo team look back on the different year of 2020, it can be summed up as a good year. The employees have been able to go to work, more and more guests have been able to enjoy the great Sumo experience at home, and the restaurants have made money. The framework conditions have been challenging and very variable throughout the year, but daring to take risks has been the winning recipe.

Contact us Systemkjøp to hear more about effective and profitable take-away solutions