When cafes struggle with a world-class battle like Covid-19 Will use the same methods probably won't survive. Listen to the strategy of defeating COVID with the Startup method, using data as a tool for CLASS Cafe '. The famous coffee shop from the beginning did not choose to invade Bangkok first but aimed to build a base and grow from the northeast. By using the S curve growth strategy of Startup until the business grows to a leap. With a business that never closes 24 hours, but when a big storm like COVID is even stronger than the tsunami. As the business is on the brink of a startup, how will the business respond to COVID and how to lead the team pass together? Khun Golf, Marut Chumkhunthod, CEO and Founder CLASS Café, shared the experience with us.

Get to know the Class Café Tech Company that sells coffee.

At the beginning of the first CLASS Café, the first branch is at Korat, which is considered the birthplace of the CLASS. Instead of running to open in Bangkok Instead choose to expand into the northeast region. After opened 9 branches, changed the concept to Startup, S curve growth, and began to do co-working space concept. Because the coffee business alone may not be interesting enough. Once he started to understand more information until finally, after becoming a Pure Tech Company

Adaptation after Covid-19 when consumer behavior has changed

CLASS started to close high-risk Bangkok branches Focusing on opening branches in Isan, where the brand is strong, few competitors, and know the market well because Isaan is the birthplace of Class. Stop thinking like a normal CEO Startup, ready to go ahead Think of a whole new process on the day that all core products die. Previously, I used to think about how to compete for customers or how customers sit in the shop for a long time. Became an idea of ​​what would make most CLASS products in the customer's fridge. Where is the customer must be there? Customers are online must be online. From the beginning, they made a bottle of coffee to the doctor. Then someone needs, therefore making a bottle of coffee that the customer has put in the refrigerator and then poured to drink straight away. From the original view of Netflix as a competitor, it became a compliment. Drink coffee while watching movies. I started to sell Flash Sale like Lazada, which is the idea of ​​a new generation of staff. It appears that sales have increased into a thousand bottles, which CALSS can do because of a good backyard platform system.

When brands help the community during difficult times, the community embraces

In the crisis, there is still cuteness Because the brand is very close to the community. When people know that it's in trouble, they help CLASS. Doing a car project ran out to sell in another district that doesn't have a store. Instead of waiting to receive and stay in the same market trying to find a new market that has never been exposed before. Korat is a large province and there are 31 districts that do not reach. Go out to touch people by having people place orders in advance through the app. Because doing community empathetic marketing or do activities with a doctor-nurse. It appears that the person who orders from the 30 districts is a doctor in the hospital district government. Every time the car went out, therefore must visit every hospital, every district public health. There was a doctor dressed in a ground cloth and ran to pick up the coffee. One time, the doctor brought a wheelchair to pick up the coffee. Car out for 1 day, pulled out the stock in the head office and large branch. This is possible because of the aftermath of social activities. And the brand doing activities with the hospital Help sincerely without expecting anything to come back. Various hospitals are familiar with the brand, make today that needs the most customers to get strong support from customers. Made him aware that when there was a crisis of being in the community and helping each other is very important.

Leadership and changing employee attitudes

Khun Golf said that the hardest thing Because the staff is a new generation That grows with the success of the organization. When COVID came in start closing branches in Bangkok but opened a branch in Khon Kaen which at that time was still selling wells. The team doesn't understand why they need to prepare for Plan A Plan B. Must begin to communicate more clearly that What if we couldn't sell today? Once everyone understands being in survival mode. Move branches, move duties from being a coffee barista Have to deliver the goods instead. If you served a customer, you must come to work to receive orders online. When understanding, resulting in adjustment and everyone still has a job helping to think of changing channels, change products change everything immediately to the customer. The higher sales figures are reflected in the data, suggesting that the adjustment has a positive effect. The business of CLASS is to generate sales. No branch created Branches may not be large, but good profits and a good income are enough. Just change the way you think business can go on.

What new innovations have occurred?

CLASS has a branch in the heart of Khon Kaen University Which is considered as the 2nd house, has an application that can place orders in advance Can pay through the app straight away. Arrive, do not open the door, the door will open by itself. And can receive the coffee ordered. Which fits in an era where people don't want to experience anything which was something designed before, therefore being well connected. The new model and User experience are contactless, which is the new New Normal of new retail. Everyone will have experience in the application before choosing to finish. This is the future and can be adapted for other businesses too.

In addition, the introduction of green tea is famous for helping to resist germs mixed in gels, alcohols, and hand lotions. Including making Flash sale and car delivery. There is a breakthrough from selling expensive bakeries or cookies that can't be sold right now. Come to sell large loaves of bread that customers can eat throughout the house and selling sticky rice with fried pork. Must change the way of thinking, not sticking and selling anything that customers are full of throughout the house and price, do not charge the brand fee. As far as being able to sell, then having work When rethinking, the kitchen team, therefore, has work to do. I had to give up on the core product now for survival.

If Class doesn't sell coffee today, what are the important assets of Class that can be used with a new company?

Began to see the ability of the team in technology more. If you can do many things by yourself, for example, delivery by yourself is an interesting thing. CLASS. Can make Flash sale because today focuses on sales. Don't wait to be ready like before. Once completed, the platform can be adapted to any customer. I can see that CLASS is just one customer of a platform. Because once there is a clear platform, the picture of the jigsaw puzzle that shows the image of more Startup, the team thinking more systematically, more platform.

How do general SMEs have a lot of data or how can they use technology?
 

Khun Golf used to recommend the owner of a la carte restaurant that was closed. Which the sales concentrated in the peak season, selling well for just 2 hours. But now customers are online, print a QR code or LINE ID on paper, and put it in a food bag as well. Customers can order in advance. If the store can communicate with customers through available channels the channels that customers use, whether LINE or Facebook, can receive orders in advance. CLASS also accepts orders via Facebook and LINE. Where are the customers? Technology is only 20% important, but 80% is observing and understanding customer behavior.

Advice for entrepreneurs

The hardest periods are close and open. If we run out of stores, we will have 100% full cost. While our income may come only 50%. Especially in this period where the government does not want to have a lot of people entering the shop and the issue of Social Distancing which cannot receive the same customers. Opening a business is therefore risky because the expenditures are full, but the income may only behalf. The shop is fully opened and there is no customer. Therefore, we must see the matter of opening gradually opening. People who open fast will be damaged. Some spots that don't need to be opened should wait and see. Because if putting money into this round and being locked down again What is the money come from? This is a very dangerous matter. Think carefully.

The concept that we got from the class is Non-adherence, regardless of position or even the original core product that has. When there is a crisis, both executives and employees must-see at the same point. Adapted to the mode of survival. Adjust according to customer behavior. Where are the customers, we must be there? Must go there and use the data available to decide what to continue or what to stop. Another important thing is to have a strong customer base. Being a good member of the community Giving without hope of rewards because in the end, during difficult times Communities will embrace and support to survive together.

Source: SCBTV, coffee shop fighting the COVID battle with the STARTUP method on Facebook SCB Thailand, 13 May 2020