 Do you know what's gonna happen when the recession hits? When everyone worries about the disease that is gonna happen if they go outside to eat? Which is a reason why tens of thousands of restaurants are going out of business? Hey, it's Wilson serial entrepreneur and owner of multiple seven-figure business If you want to get more tips tricks and hacks on building a successful restaurant business Make sure you guys subscribe for much more Just as a disclaimer, I'm not a medical professional nor am I a Economist but in today's world today is March the Second 2020 so we're in the midst of one of the biggest global crisis out there today And because of the fact that I do not want this video to be demonetized I am not gonna talk about what kind of disease is spreading around the world which started from China If you have been living under a rock, I'm gonna tell you about how bad the situation really is today I have heard of multiple incidents where people are laying off 50% of their labor force because of this happening because of this virus that is spreading amongst the world I've heard of people that are closing down and not getting their inventory in time because all the inventory is Broken that supply chain is broken and for example myself my other business that I'm running I can't even get my plush dolls because the cotton industry has been affected the Fabric industry is being affected and no one is can go back to work Well, I'm talking about Insights that we get from down on the street down from the source of what is really happening because of this disease that is happening and You know the worst business that is getting hit up front. It is the food and beverage industry Why is that the case? It is because with the food and beverage industry We're looking at roughly five to ten percent margins only and what that means is that cash flow is always gonna be tight Always always gonna be tight now. Imagine your business getting hit No one comes to your restaurant because they're worried to be contaminated by this disease Even if you're in a city that has no virus no disease whatsoever You're still gonna get impact because of fear amongst of catching this disease Which is the reason why I'm making this video I'm gonna show you ways that we can alleviate the pressure from this Phenomenon and catastrophe that we're talking about Some examples of what my other friends are doing is that they are actually forcing their employees To take sick leave they're forcing them to work three days and take three days vacation Other peers of mine have been actually going into a renovation phase Where they're laying off not even laying off telling their employees that they're renovating closing shop For a month two months whatsoever and even in more extreme cases We see that restaurant sales has declined more than 70 to 80 percent let alone the five to ten percent Margens that we're talking about. So how can we even survive in this market? Well, the worst is that we don't even know when this thing will blow by we don't know When is it gonna really hit full scale as of today? So what can we do? We can actually do something about it. So what is the solution out there now? Let's look back at what has happened when SARS has hit After SARS has hit after is blown by the market quickly recovered and actually rebounded even more Than when the disease hit. So what can we learn from that? Well, there's a few things that I want to be covering first You should definitely check out this video as I cover the five different ways to combat this virus and to win in this environment and in this catastrophe The first thing that we should look at is not look at how this disease and virus has impacted the industry How fearful we should get we should look at the opportunity it presents us now What is that opportunity is that everything is cheaper? You have much more leverage when it comes down to leasing out spaces, which is the reason why now is the time Okay, I'm telling you now is the time to go out there and start Bringing in what you're you've always conceptualized always in your mind to bring it out into the world go out there and start Negotiating seeing different places that sparks your interest because now is the time you can leverage off To talk to tenants to talk to actually landlords and to negotiate for better rates Standing from the other side of the coin me as a landlord one of my biggest worry is that my unit out there is not Going to be rented because I'm going to be at negative cash flow month after month and there's no end in sight So what when a tenant potential tenant comes in and start negotiating rates with me all I want is just to tell them You know what take my unit take it at whatever cost that you would want to pay me because all I want is to have someone Pay my mortgage now I am talking from a landlord's perspective and that's how I think which is the reason why you too Should be able to take advantage of this mindset the landlord's mindset to negotiate for More free months rent and I've seen this again and again happening because of the situation happening in today's world We're talking about negotiating for cheaper rent on a month of month basis and on top of that You can start negotiating for even perhaps fixes and renovation rebates These are all great stuff that you can actually add more value to your business and in turn by the time Your restaurant is built by the time you have your whole business up and running You can bet that the market would be starting to recover You can bet that the virus itself has already blown by because we all know that these viruses don't last for Years at most it lasts for six to nine months and then the vaccination starts coming out and Solution people get and people understand it people have different ways to combat it And it just becomes part of life now do not quote me on this like I said I am not a medical professional But I'm just speaking to you from a standpoint of an entrepreneur a standpoint of someone who has been through a One of these different disease previously as Warren Buffett once said I do not know the exact quote But he did say this when everyone is greedy you should be fearful when everyone is Fearful you should be greedy and this is what's happening in the market. That's where the opportunity lies That's why people are gonna be able to make tons of money in the stock market, right? We have all heard of the same Riches are made in recessions and same goes with restaurant owners This is a time for you to be able to have much more ammunition for you to bargain with not only Landlords but also with your renovators with your general contractors because what happens everyone's scared Everyone thinks that cash is king so everyone's reserving all their cash and before you know it They missed the boat So when you have the cash now when you are in the position to spend to negotiate to build Don't be afraid to do so go out there start negotiating start telling people about hey, you know what? I know it's fearful. I know you're not gonna have that much business So I'm here to give you business But you know what to compensate for my risk give me a 20% discount And this has worked again and again and I'm seeing this as a trend to people that have been mentoring And it is happening and it's working so go out there start negotiating Don't be scared because as Warren Buffett said When everyone is fearful be greedy a second way to win in this recession To win as a restaurateur to win in this crisis is to build delivery as your core business in today's world We are in the forefront of delivery. We're in the forefront of this transformative way of doing a restaurant business because We see trends that these third-party delivery apps are trending like crazy More and more people are getting used to the habit of just ordering their food online And within 30 minutes the food gets delivered to their fourth doorstep People don't like leaving their homes and that's why delivery as a core business function in your restaurant is key To your success. It's key to be able to combat recession like what's happening today It is key to combating Viruses diseases that prevent people from going out to consume Because of the fact of what because of all these variables that I've been telling you about if you haven't already been considering Signing up with third-party app deliveries. Definitely check out this video where I talk about third-party delivery apps And more and more signs are talking about how delivery as a business is so fundamental and so core as X CEO of uber have is now actually creating cloud kitchens and cloud kitchens are basically Restaurants with no storefront. They only focus on delivery That's the reason why now's the time to rebuild your business to build a business that has Delivery at its core to be known To provide this service and while you can actually provide in-house service But also being known as a delivery service based Ration you're gonna be able to be in the forefront of this movement of this trend That is gonna be happening in the next few years So now's the time to be able to take advantage of that and work that into your business So there you are Recession and restaurants recession does not mean your restaurant should go under we've talked about how some of the Restaurants are suffering like crazy that they have to cut labor that they have to close down because of the thin margins We've also covered the ways you can take advantage of this crisis that's happening this virus That's going around this disease. That's preventing people from going out to eat. Well, how can you do that? This is a great time for you to be going into the business to be able to have much more leverage to Negotiate with different vendors to negotiate with landlords So then that way you're gonna be posed for in a position to be successful in the years to come in addition to that Now's the time to work delivery as a core fundamentals of your business because it's only trending this way people are people are much more Likely to purchase on their phone on third delivery apps Which is the reason why you are in this golden opportunity to be at the forefront of this movement I really hope you enjoyed this video because we spent so much time doing all the research to understand how These research can help you as a restaurant here If you enjoyed this video, make sure you smash the like button Subscribe for much more that I can provide you otherwise. I'll see you guys in the next video