24 May 2020

How to Build a Restaurant during the time of CoVid


One casualty of the Corona Virus pandemic is the restaurant industry. We are just seeing some restaurants receiving permission to open their dining rooms at 25 - 50% capacity. That is not profitable for those restaurants. These sit down restaurants require multiple seatings at near 100% capacity to even make a small gross margin. They have not built the infrastructure to do takeout or delivery…it is more difficult to do these well than it appears. So many will not survive.

There are some restaurants that are doing well. Those who built a multi-channel model from the beginning. For example Chick-fil-a have seen their same store revenue grow by 40% this past quarter over year ago revenue. How is this possible when dining rooms are shut down? These restaurants don't expect many of their guests to dine-in. They optimized their business around take-out, drive through and delivery. So when restaurants were ordered to close their dining rooms, these restaurants were good to go. In fact Domino's was hiring additional staff during the pandemic.

So how should a company like Perseverance Endeavors build a Vegan fast food chain that can survive during times like these? By not adopting the traditional restaurant model.


The traditional model has the advantage of not needing complex systems. Just a kitchen and a wait staff. But the disadvantage is that most of the revenue comes from butts-in-seats. It is therefore vulnerable to any circumstance that limits dine in restaurant service like a pandemic, or street construction, or anything else that shuts down this one channel of service.


A better approach is to build the restaurant with multiple channels of delivery. This is beneficial for two reasons:

1. This model allows customers to receive their food the way they want. If they want to stop by on their way home; they can pick up a meal for the family. If they are already at home (or work) they can order delivery, if they want to get out of the office they can dine in…get the picture? Great tasting food delivered the way you want.

2. If one channel cannot be used (or used fully) there will be a minimal (if any) hit to revenue. This approach is much more resilient.

And of course this is what we are building.

Waquim Filsaime

24 May 2020
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