© Picture: Thuner Tagblatt
How do you react when 50% of your company's turnover is lost almost overnight because all events are cancelled, restaurants and cafés are closed by emergency law and thousands of commuters who would otherwise hastily eat a roll on their way to work are sitting in their home offices? An interview with a Swiss baker.
BPN: Mr Reinhard, how do you keep your company on course in the current stormy economic waters? What is particularly important to you as a managing director?
Alexander Reinhard: First of all, it is important to me to take care of my close reference groups such as my family, the employees and the customers. In particular, it is important to promote cohesion among the employees and to support them so that confidence prevails despite fear.
Many of my staff have been struggling with fear and uncertainty in recent weeks and months. To counter this, I have stayed in close contact with each of my staff members in person or via chats. I resolved to exchange even more information than before the crisis. In doing so, we were also able to gather ideas as a team on new products and services. This opens up new perspectives for us and avoids a one-sided view of the challenges of Corona's everyday life.
BPN: Do you also see opportunities in the current crisis?
Alexander Reinhard: Absolutely! I am basically an optimistic person who goes through life with a healthy dose of humour! I can say that I have learned a lot as a person and entrepreneur as a result of the current circumstances.
The biggest challenge of the Corona crisis was to develop new forms of distribution as quickly as possible in order to bring our baked goods to the customer.
To this end, we immediately set up a home delivery service by car and bicycle. In order to save costs, we offer this service together with a competitor. The assortment consists of the most popular products of both bakeries. The customer, and especially at-risk groups, now have access to all imaginable breads, biscuits and sweet pastries. Delivered free of charge to the customer's home from an order value of the equivalent of 5 USD. Our customers have responded very positively to this. They appreciate that we, as competitors, are teaming up during the crisis. Such cooperation undoubtedly needs trust, coupled with written agreements.
In parallel, we expanded our online sales channels: the company website, Instagram and Facebook account.
We have also observed that in the wake of the crisis and the uncertainty on the international markets, our customers are increasingly demanding regionally produced products. This is a great opportunity for the "100% Bern" bread label recently launched by Bäckerei Reinhard AG: grown here - milled here - baked here.
BPN: How were you able to financially cushion the huge drop in sales immediately after the lockdown?
Alexander Reinhard: Solely thanks to reserves that we built up in good times. My daily job is to provide the company with sufficient liquidity.
BPN: Do you offer more discounts in the crisis to boost sales?
Alexander Reinhard: I am very cautious about that. If I give discounts, I have to sell more products for the same turnover. How realistic is this in times of Corona?
BPN: Thank you very much for the very interesting interview.
Alexander Reinhard: The exchange of experiences between companies means a lot to me and I would also like to thank BPN!
Alexander Reinhard is the Managing Director and Chairman of the Board of Directors of Bäckerei Reinhard AG. He is the fourth generation to run a locally anchored family business with 170 employees in Bern.
