How Malta’s small businesses tackle the January slump

After the spending rush of December, consumers tighten their belts, and companies often feel the impact.

However, entrepreneurs like Emily Grimaud, owner of EATS by Emily, and the sibling duo behind Gemma Joe’s, Steve and John, have devised strategies to navigate these challenging months.

Adapting to the seasonal slowdown

Emily Grimaud, whose business EATS by Emily specialises in meal plans, office breakfasts, and corporate goodies, understands the importance of planning ahead.

“Plans for January happen way in advance,” she explains.

“We think about the slower periods during our busiest months because we know it’s expected. We prepare for it by ensuring our vacation time is taken during January and using the quiet time to recharge and plan ahead,” she adds.

For Steve and John at Gemma Joe’s, a mobile catering business known for its innovative menu, financial foresight is key: “We try to save during the summer months for the winter periods so that we have extra money to pull from if needed,” they share. “We also try to budget differently by reducing personal spending.”

Marketing strategies to counteract the slow season

While some businesses may cut back on marketing efforts during slower months, both EATS by Emily and Gemma Joe’s take a proactive approach.

“I encourage people to purchase from my business because my product is of a high standard, rather than just because it’s a low season,” says Ms Grimaud. “People want to spend money, and it’s my responsibility to show them that my product is worthy of their euros.”

Meanwhile, at Gemma Joe’s, the team keeps their marketing efforts consistent, focusing on seasonal offerings. “We bring out foods and drinks that are warmer and suitable for winter months,” they explain. “This year, we introduced a biscoff white hot chocolate and mulled wine. We also mixed up our menu by launching a Dubai pistachio croffle and winter-themed ice cream flavours like pumpkin marshmallow pie and butterscotch brownie.”

Loyalty programmes: A worthwhile investment?

Loyalty programmes and exclusive deals can be a strong retention tool during the quiet months, helping businesses maintain customer engagement. “I offer a loyalty scheme for coffees and sporadically give out freebies based on sales, which I drive through my social media channels,” says Ms Grimaud.

Steve and John at Gemma Joe’s have also recently introduced a loyalty card, which has been well received. “We believe loyalty programmes help retain customers, and we’re already seeing people use them regularly,” they share.

Balancing stability with future growth

Financial stability during low seasons is crucial for long-term sustainability.

“As with any business, there are highs and lows,” Ms Grimaud acknowledges. “Each month, whether good or bad, rent, business loans, salaries, produce, and bills still need to be paid. So, it’s important to accrue each month for these expenses. During the busier periods, I ensure that I’m managing my cost of goods and keeping operational costs within budget.”

At Gemma Joe’s, the strategy is similar. “We assume January will always be slower, so we prepare in advance. We also take our break during this month or reduce our workload. During peak months, we work as much as possible and put extra savings aside for the winter months. This way, lower sales don’t worry us.”

Is the January sales slump worsening?

While slow months are predictable, many small catering businesses are noticing a broader trend of reduced consumer spending.

“I don’t think the sales slump is specific to January,” Ms Grimaud notes. “Over the past few years, I’ve noticed a general decline in spending, both in office catering and in-person sales. Budgets for office events have shrunk, and while clients used to comfortably spend an average of €20–25 on a Saturday treat, this past year, it has dropped closer to €15 per person.”

Steve and John, though relatively new to the market, have observed changes in consumer behaviour as well. “This is only our third January cycle, so we can’t say if it’s worsening,” they explain. “But we did notice fewer tourists this winter and fewer people out at night compared to last year. The weather was also colder and wetter, which may have played a role.”