As we approach the end of 2022, businesses everywhere are preparing for whatever the new year may hold, including a possible recession. If there was one big takeaway from the pandemic, it’s the importance of being proactive.
As COVID-19 swept across the globe, restaurant brands everywhere scrambled to stay afloat amid government shutdowns, supply chain disruptions and a labor shortage. Having a game plan to combat future economic uncertainty has never been more crucial, and Angry Crab Shack is already ahead of the curve.
The best way to overcome volatility in an uncertain economy is to be prepared,” explains Andy Diamond, President of Angry Crab Shack. “As the old saying goes…. Expect the best but prepare for the worst. We may not always be able to predict what will happen, but being prepared usually minimizes the impact when adversity occurs.”
Above all, Angry Crab Shack focused on diligent cash management to ensure it was prepared for a decline in revenues. “After a record year in 2021, we made sure to set aside enough cash if and when a downturn occurred,” explained Diamond. “There should never be a ‘down time’ when it comes to marketing. We wanted to be able to continue our marketing efforts to build the brand, expand the number of locations, and most importantly, remain engaged with consumers. If you are making decisions based solely on your bank account and not what is in the best interests of your business, you won’t be in business very long.”
Don’t Cheapen the Brand or Product
Angry Crab Shack’s guest have come to expect a unique dining experience that includes its one-of-a-kind Asian Cajun flavors, delivered in a fun, family environment. These attributes have helped build the brand and are what continue to differentiate it from its competitors.
“Cheapening our product or altering the guests’ experience are not options for Angry Crab Shack,” stated Diamond. “Remaining loyal to what’s made us successful and to what our guests expect is key, especially in a wavering economy. Maintaining product quality, customer service and the overall guest experience matters now more than ever.”
Measure What You Manage
Ensuring the business is performing financially is the best way to keep your “head above water” during uncertain times. Reflection is vital, so Angry Crab Shack conducts regular analyses of its results, including guest count, guest purchasing trends, guest experience, average checks, costs of goods and labor.
As Diamond puts it, “You can’t manage what you’re not measuring. We measure key metrics on a weekly, monthly and quarterly basis. By comparing results to a series of established performance standards and budgets, we’re able to identify what’s working, what’s not working and where corrective action is needed.”
In addition to regular review of its results, Angry Crab Shack conducts a formal analysis of its Strengths, Weaknesses, Opportunities and Threats (SWOT) on a semi-annual basis to identify other areas of opportunity and to refine its strategy going forward.
It’s crucial to stay up-to-date not only on the economy as a whole but on trends within the industry. One area of emphasis at Angry Crab Shack is its relationship with its primary vendors.
“Our relationship with Sysco is more than buyer and seller. We are partners. Keeping the lines of communication open between us, especially in times of rising prices and supply chain shortages allows Angry Crab Shack to be proactive in purchasing seafood and accurately projecting future costs,” said Diamond.
Regarding labor, Angry Crab Shack is always hiring to ensure that restaurants are fully staffed, despite whatever the future may hold.
Finally, communication is key. Angry Crab Shack practices transparency with its corporate team, stakeholders, franchise partners and investors so that everyone is on the same page and able to make waves in the seafood industry together.
Are you looking for a reliable franchising opportunity with a rapidly-growing brand? Contact us today to learn about opening an Angry Crab Shack in your area!