CMCO Malaysia Round 2: Is Your F&B Business Ready?
KL, Selangor, Putrajaya CMCO SOP UPDATE:
- October 15 – Two diners per table limit increased to a maximum of four diners per table, announces Senior Minister Datuk Seri Ismail Sabri Yaakob.
- October 26th – The Conditional Movement Control Order (CMCO) restrictions in Selangor, Kuala Lumpur and Putrajaya will be extended for 2 more weeks until November 9th 2020.
- November 7th – Following the rise in COVID-19 cases, the conditional movement control order (CMCO) for Selangor, Kuala Lumpur, Putrajaya as well as Sabah will be extended until Dec 6.
Following the advise from the Health Ministry, Malaysia’s government decided that Selangor, Kuala Lumpur, and Putrajaya will be placed under a Conditional Movement Control Order (CMCO), reported the New Straits Times on October 12.
This second CMCO came into effect on midnight, October 14 until October 27.
These three areas were previously under the RMCO (Recovery Movement Control Order), and business was gradually picking up after a high drop in sales during the MCO period this year.
So Malaysian business owners, are you ready for round 2?
What does the second CMCO mean for business owners?
Here are some key highlights of the CMCO SOP that will affect business owners, as announced by Senior Minister (Security Cluster) Datuk Seri Ismail Sabri Yaakob:
- Eateries like restaurants / food truck / stores by the road side can operate between 6am – 10pm
- Food delivery can operate between 6am – 12am
- Dine-in is allowed, but max 2 people per table
- Drive-thru and takeaway are encouraged
- Social gatherings like parties are not allowed
- Inter-district and interstate travelling will be banned, workers will be required to show a working pass or a letter from their employers
- Only 2 people per household will be allowed to go out and buy essentials
- All economic activities in Selangor, KL, and Putrajaya can proceed as usual until a more detailed SOP (Standard Operating Procedure) is announced by the NSC (National Security Council)
How will these CMCO SOPs affect your small business?
Here are some example scenarios:
- Workers that stay in another district will need proper paperwork in order to come to work
- Your loyal customers that come from another district will not be able to come visit you
- Physical store sales will drop due to lower foot traffic
The first time the MCO hit, many F&B businesses saw a drastic drop in sales, even up to 90% in some cases.
It was so bad that even big F&B brands like the Delicious Group shut down.
So what can small F&B businesses do when faced with such a situation?
Well for 5 cafes and restaurants in KL and Selangor, the MCO proved to be their driver in innovation and growth.
These F&Bs – Jaslyn Cakes, IDC KL, Pokok KL, Tray Cafe, and Kinme Sashimi & Grill Bar – found a way to not only survive, but also thrive during the MCO period.
Some reported hitting 2x AOV (Average Order Value) and getting 600+ orders in 2 days!
Here are 3 key similarities these 5 cafes and restaurants shared:
- they’re a neighbourhood favourite with a loyal following
- they chose to power their own food delivery feature
- they’re active on social media
Food delivery will be a key driver to your survival in these times of restricted travel.
And this is a fact.
Based on our data, there has been a 57% increase in weekday food delivery orders just 2 days after the CMCO started.
Pickups, on the other hand, dropped by more than 50%.
This means that even though dine-in is allowed in most places, consumers are still hesitant to go to your physical store.
So get ready, F&B business owners.