This archive report was first published on 21 April 2020.
Published on April 21, 2020, the corona crisis has brought unprecedented challenges to businesses worldwide. In Kenya, the hospitality industry is no exception. To understand how different organisations are coping, let's examine the responses of three restaurants on Tom Mboya Street: Kawaida, Ujasiri, and Ubunifu.
Kawaida, a traditional restaurant, has seen an 80% drop in customers. In response, they scaled down operations by firing casual staff and sending full-time employees on unpaid leave. This approach, while simple, may not be sustainable in the long term.
Ujasiri, on the other hand, has chosen to retain most of its staff. To break even, they went online, reaching out to their old clients who are working from home. Using an online presence, Ujasiri allowed customers to make and pay for their orders the previous day, with the help of boda boda services for delivery.
Ubunifu, the innovative restaurant, has taken a similar approach to Ujasiri by going online and offering home deliveries. However, they extended their offerings by providing an online platform for customers to create a wish-list of their best food items. After analysing the wish-list, Ubunifu created a new line of food items, reorganising their kitchen to service this new business line.
While Kawaida holds its breath, facing imminent closure, Ujasiri is riding the coronavirus wave. Ubunifu, on the other hand, is not only riding the wave but also smiling all the way to the bank. After the crisis, Ubunifu will be digitally transformed and growing into a multinational entity, while Ujasiri will survive but remain an SME.
Which type is your enterprise? Will you be a Kawaida, a Ujasiri, or an Ubunifu in the face of the corona crisis?
Mr. Walubengo, a lecturer at Multimedia University of Kenya, Faculty of Computing and IT, offers valuable insights into the responses of these restaurants.
