Create Value and Be Compensated: The Rise of the Auction Strategy
Top fine-dining restaurants are utilizing auctions to create additional revenue streams during the COVID crisis. Llama San is a single high-end establishment based in New York City and “to raise supplemental income for our employees that are most in need”, they have auctioned off deals for ceviche bowls, pisco sour recipe lessons, and victory dinners by restaurant chefs. This has been made possible by 32 Auctions, a platform for free online silent auctions. Other restaurants such as Chai Pani Restaurant Group have also gone to 32 Auctions where they can set their starting bid price on limited release merchandise and have 100% of its proceeds raised going to support their staff.
This strategy would require businesses to grow their digital presence so that they can connect with their audience, and establish a greater base to market an auction on. Silent auctions require participants to be invited through email, posting on websites and social sites, or printing. 32 Auctions are another platform that is free with optional costs for additional services, but pickup and shipping have to be organized by the auction administrator.
While not all restaurants can leverage the prestige and pricing that Llama San and other restaurants on the 32 Auctions platform rely on, every restaurant has its own style of making their dishes. For small businesses, this may mean suggesting new exclusive recipes that can be bought at a price. Restaurants have a certain cultural niche or classic order that can be tweaked to fit ingredients that consumers may have in their households.
A popular auction option is for restaurant chefs to share their expertise with the bid winner. Not only is this a chance to get employees working and sharing, but connecting with customers primes a restaurant for success in the future. With people now confined by stay-at-home orders and some not feeling safe enough to order in, auctions provide an alternative way to support local businesses. Customers can improve their cooking skills while being taught by their favorite restaurant chefs! According to an AMC Global Survey, 38% of polled consumers plan to support local businesses far more in the future, indicating a dramatic emphasis on community support. Now is the time to be connecting with potential customers.
While auctioning may seem like a daunting task, restaurants such as Llama San and Chai Pani demonstrate that the effort can go a long way in keeping doors open and actively engaging their communities. During a crisis, auctioning is an actionable form of supplemental income and paves the way for greater relationships with customers.
As a social impact initiative, Rem and Company also offers free consulting services and resources to small businesses and nonprofits impacted by COVID-19. Our pro-bono consulting teams provide small businesses with the opportunity to identify and prioritize issues facing their business, propose innovative strategies, and facilitate execution. If you are a small business or nonprofit in need of assistance, learn more about how we can help.