My hometown recently experienced an intense late summer heatwave. With temperatures hovering at a record-breaking 111 degrees one afternoon, I realized that I was the lone person outside at the normally busy community college campus where I teach.
The people I did see outside as I drove home looked understandably weary and stressed by the heat. As I stopped to pick up a few things to prepare a light no-cook supper for my family, I noticed the trashcans outside the store were overflowing with cold drink cups.
Inside the sparsely populated store, I saw some people grabbing watermelon and ice cream. A few others were at a freezer pulling out bags of ice.
There is no doubt that extreme weather affects business. On that day, stores selling cold drinks and ice were bustling, while most retail stores, restaurants and other businesses were slow.
Retail businesses usually see a significant drop in traffic during heatwaves and cold snaps or during stormy weather in any season. Even if your business does not count on in-person traffic, your employees may not be able to get to work or stay as engaged in their work during bad weather. In addition, your supply chain can be significantly interrupted by extreme weather conditions that cause icy roads or delayed air traffic.
Since even the best weather forecaster cannot fully predict how weather swings will affect a business during an extreme weather event, there are some steps you can take to keep your business afloat during bad weather.
Create a weather communication plan. Be clear about setting expectations and communication guidelines for your employees during bad weather. If you have to close your business due to a weather emergency, you don’t want some of your staff attempting to make it into work. Notify them via group text or through your website of any closings or delays in operation.
For the same reason, have clear communication with your vendors and suppliers about what happens during unexpected weather-related events. While the weather may be a surprise, the way you handle the situation does not have to be.
Keep up with short-term weather forecasts. As a business owner, you are accustomed to keeping up with economic forecasts and with business news. You need to add weather news to that list.
Here’s an example. Knowing that its customers buy more soup in cold, damp and windy weather the Campbell’s Soup Company pays close attention to the weather. It even links its advertising to the weather forecasts in certain markets with an algorithm called the “Misery Index.” Therefore, if you hear a Campbell’s soup ad on the radio, chances are pretty good that the weather where you are is miserable.
Diversify your product line. I recall a new small business in my town that sold primarily smoothies and iced drinks. The Hawaiian-themed drive-through kiosk seemed to be doing a brisk business during the summer tourist season. As fall neared, however, I watched closely for menu items that would reflect the upcoming temperature changes.
Maybe soup? Hot drinks? However, nothing seemed to change and, not surprisingly, I saw a “For Sale” sign on the shuttered doors before the end of the year.
Seasonal changes are predictable, but you can also experience the occasional cold snap during the summer and warm spell during the winter. Have options for your customers, so that you can meet their needs on a year-round basis.