Two Businesses Entered The Pandemic, One Survived. Here’s What We Learn About The Blame Game.

You have a choice in business. You either sink or make lemonade.

This is a story about two business owners.

Well, technically, it’s about one business owner and one out-of-business owner.

These are two proprietors operated small businesses during our forgettable pandemic. Many business owners suffered, undeniably, but in Melbourne, where I live, our suffering was immense.

We were in lockdown for most of 2020 and 2021. Businesses closed in the opening months of the first year, some held on during the next, and many kept going well after the lockdowns ceased.

Of the many businesses that went under, these two survived. Well, technically.

I’m about to tell you the story of the two businesses that had all the opportunity to thrive in a pandemic. One did just that; the other blamed the world for their problems.

And you might think is the story of how a pandemic ruined two businesses. In reality, it’s far more complicated than that, with a lesson all business owners need to learn before it happens to them.

Business owners comparison

I wouldn’t call this analysis a science experiment. But if we were trying to make sure our test subjects were alike, you couldn’t get any closer than this.

The two businesses were both cafes. In fact, they were located not too far apart from each other, in the same suburb of Melbourne’s South East.

One had been in business longer than the other, but they were both doing well in their respective locations.

These businesses were not affected by any of the lockdowns. As they were providing essential services, in the form of food, they were permitted to keep trading all throughout the pandemic in Melbourne.

You could say they had no excuses to fail. But we will get to that.

Lockdown #1

I remember the day we fell into lockdown in March of 2020. I was on the train on the way to the Melbourne Grand Prix when I learned the news that not only was the race cancelled, but businesses would soon follow suit.

Cafe A, as I will call them, kept their doors open.

• Though they could have closed and waited to see how long the lockdown would be, they kept trading.
• They had fridges stopped full of food and milk waiting to perish.
• The owner of Cafe A also had multiple staff members who needed work and could continue their paid employment.

Along with every other business, Cafe B decided to close its doors.

• Though they were permitted to keep trading, they decided to initially shut down and see how the lockdown would pan out.
• Each day, they reassessed their options and decided whether to open or not.
• During their “hesitation, time”, all of their stock perishables had expired and needed disposal. They couldn’t sell their product when they decided to reopen.
• They continued to wait a couple of weeks before deciding to reopen their doors.

At the time, I spoke to Cafe B about their strange decision to open, strange in that they could have been open the entire time, and this reopening date didn’t coordinate with any meaningful events.

They said they were bored at home and couldn't last another second twiddling their thumbs.

It didn't seem like the greatest reason to go back to work. It was also distinctly opposite to the attitude of their competition.

“The locals need their coffee,” said the owner of Cafe A.

Lockdown #2

It wasn't until the second major lockdown that things in Melbourne started to become rigid. We began to see businesses establish stickers on the floor outlining social distancing measures. There was also the introduction of masks, a mandate for leaving the home.

For little cafes, social distancing wasn't easy for them. Their small establishments didn’t have a metre and a half to give between them and their customers. The space didn’t allow for adequate distancing.

But Cafe A appreciated adherence to the regulations, and they used their tight space to create the workaround system.

Even though they didn’t have an abundant indoor space, they turned the front door into a one-in-one-out system.

• One customer was allowed in at a time to order, expediting the order-taking before the next one could come in.
• Everyone else was in an orderly line, marked out by chalk on the ground.
• Orders were delivered through a window beside the coffee machine. People waiting for their orders outside were encouraged to distance themselves.

Call it a crude, unoriginal system if you like, but you can’t argue when it works. Customers lined up all day, every day, just to get their coffees. They happily waited in line. They did what needed to be done to get their caffeine.

Cafe B faced similar issues with the amount of people who could be in the cafe at the same time.

• The owner decided to put in a booking system. You book the time you want to come in and get your coffee.
• No other products were available except coffee, which was a step away from the cakes and sandwiches that used to be provided.
• The Cafe B owner didn't let anybody inside unless they had made a booking, nor did they stay open any later than the booked hours.

To elaborate, if the first booking wasn't until 8 am, they wouldn't open until then. If the last booking was at 12 pm, they would shut the doors as the customer left at 12.05 pm.

Lockdown #3

I call it lockdown three, but realistically, Melburnians had experienced many forced stay-at-home orders; it was impossible to keep up with which one it was.

As much as the lockdown struck seemingly unexpectedly, we experienced deja vu, a sense of repetition, one easily predictable considering the last twelve months.

We all knew what to expect. We knew that:

• We wouldn’t get concrete reopening dates
• Social distancing was paramount
• Everyone wanted access to restaurant-like food they could eat at home
• Everyone was experiencing cabin fever, having exhausted their cookbook collection and Netflix accounts
• People had money to spend; there were no holidays to go on, meaning people with a budget wanted to enjoy a good life from home

It was one of those moment where every business owner was on the same playing field. Even if you didn't agree with how the general public responded to lockdowns, at least you knew what they were up to.

Cafe A decided the second lockdown would be about gourmet takeaway foods.

• During the reopening of late 2020, they hired a chef to help them create hot meals they could serve in-house.
• When the lockdown took effect, they converted these meals into takeaway packs customers could reheat at home.
• They used the oversized glass window to promote daily takeaway specials. Each day, they promoted a new curry, pasta or gourmet feast that customers could pre-order and pick up the next day. Plenty of spares were available for impulse buyers.

The owner of Cafe B didn't want to endure the 2021 lockdown. They lamented how hard it was just open on the days during 2020. They hadn’t made much money either, allowing them to take advantage of the government remuneration package.

It was undeniable that Cafe B had suffered during this time, and once they applied for this handout, they didn't see the need to open.

They were getting paid regardless, albeit not as much as they could earn.

But why make life hard for themselves?

No more lockdowns

After December 2021, Melbourne returned to normal. As normal as we could get.

There were no restrictions on the type of restaurants and cafes that could open, and regular table seating was again available. Gone with the lines along with the masks and capacity issues were quickly heading to full.

Cafe A reopened, in a way.

Through social media and word of mouth, they promoted the changes in capacity.

• They hosted specials to celebrate each step forward towards full capacity, eventually hosting a banquet when full capacity was instated.
• When you passed the cafe you didn't believe for a second that they suffered or challenge during lockdown. Every team member was smiling, and the business was thriving.

Cafe B reopened, except the business was quiet, and the customers weren't lining up to get inside.

• Even though the cakes and sandwiches returned to the display cases and the owner proclaimed they would never close again, the customers didn't return in droves.
• Very little promotion was used to explain the changing situation and encourage customers to visit. Many thought they were closed due to their lack lustre marketing.

Midway through 2023, Cafe B closed its doors. When asked about why they closed the cafe, the owner said, “The pandemic destroyed their business”.

Had there not been lockdowns, they would still be open today.

At about the same time, the owners of Cafe A sold to a lucrative local investor, paying the successful owners handsomely for their thriving business.

The lessons

It doesn't take a business owner to see the things Cafe A did well and the elements Cafe B didn't.

But in case you missed it, and you're worried you’re heading towards being like the Cafe B owner, let’s debunk the comparisons:

• Cafe A stayed open when Cafe B closed — One was making money because the doors were open, and the other couldn’t do anything whilst staying home. You can’t make money if you don’t open.
• Cafe A created an easy way for people to visit them — Cafe B struggled with the limitations of social distancing, whilst Cafe A created a system to keep them open. You can’t make money if you don’t give people a way of accessing your offering.
• Cafe A created a menu people wanted, learning from the year before — Cafe B remained closed and didn’t think about how they could predict the future. You can’t make money if you don’t adhere to the basics of supply and demand.
• Cafe A listened to the customers' needs and gave them what they were asking for — Cafe B re-opened to fulfil egocentric needs. You can’t make money if you’re solely in it for yourself.

The things these decisions have in common is it they were logical. They're almost sliding door kind of moments.

With the power of hindsight, we know Cafe A made the right decisions. We know because we're on the other side of it, pushing through the lockdowns paid off for them.

Fundamentally, what Cafe A did differently was how they treated outside problems affecting their business.

There will always be pandemic-like situations when you're running a business. Hopefully not another pandemic, but you can't control outside forces from targeting your business.

• You can't stop a big chain store from opening next to yours.
• You can't avoid your landlord jacking up the rent to a price you can't afford.
• You can't avoid your supplier going out of business meaning you can't get your core product when needed.
• You can't avoid a staff member quitting at the last minute because they must move overseas to support a dying relative.

The unexpected always happens in business. When you're in the position of ownership, you need to roll with the punches.

Those who survive are the ones who change with the times, adapt to the hardship and make lemonade from lemons.

And they don’t blame exterior forces for their failure. They take ownership of what happens to their business. Because whilst they can’t control what happens to them, they can control how they respond as a business.

That’s a true entrepreneur.

The next time you want to blame a pandemic for your loss, curse an algorithm for suppressing your content or swear a faceless conglomerate is sabotaging your sales, remember Cafe B. They succumbed to the blame game, and they didn’t survive.

If you want to see more real-life, real-time stories of building a business, I share my professional rollercoaster on TikTok: https://www.tiktok.com/@ellenjellymcrae