Cookery School - Coronavirus Cancellation Policy

tekton23

Hi,
I run small group cookery & bakery classes from my home. I am dependent on this as my main source of income and it is/was a thriving, growing business. 
I am starting to receive an increasing number of cancellation requests due to people's disrupted travel plans or from some who are quarantined, these are students who have paid in advance.
My cancellation policy states 10 days advance notice for cancellations. No refunds are given, but alternative dates are found so that students can re-book their place. I usually find that less than 10 day's notice, doesn't allow me to find other people who can attend to take their space. There are knock-on effects to me in terms of childcare, ingredients, staff and other overheads when someone cancels at short notice. Hence the 10 day policy.
I really want to be fair to my students and understand that they may not be able to attend in these peculiar conditions. Does anyone have any advice in terms of fair policy or insight into what other similar businesses are doing.

Should I be strict and not re-book or refund cancellations as per my current 10 day policy? Or am I risking my reputation and should I just refund or re-book as per the customer's request? I am just worried if the numbers increase, I will be out of business. If there is a governemnt quarantine of say 2-3 weeks, I will of course blanket cancel those classes, and re-schedule all involved. I am just worried about classes that do continue as planned, but with say only 50% attendance.
Thanks,
T23

Savvy_Sue

This is tricky ...

in an ideal world, you might have insurance against such an eventuality - do you?

It seems unlikely that if you relax the policy that you will fill the classes with other people, even if you currently have waiting lists. We're all nervous, and expecting things to get worse before they get better. 

I would start thinking laterally. I've heard that both China and Italy are doing distance learning: if most of your students are local, think if there is any way of delivering ingredients and then delivering the session online. There's a lot to think about there: you might want to pre-record and be available to students needing help at particular times. 

And think about how else you could make money. It may not be what you want to do long-term, but could you sell what you make locally, online? Someone's made the good point that as well as the basics, those who are stuck at home are going to want treats. I don't know what additional regulations there are for selling food as opposed to making it with a group. 

the problem is that if you are strict, you may be less likely to get the business back once your classes are up and running again.

As for what other small businesses are doing, I don't know. I'm due to go abroad in a week's time, the location is not currently locked down but has enough limitations to make me disinclined to visit. I was thrilled to find that the airline are allowing re-booking with no charges, or a voucher valid for a year, but I've got a non-refundable booking on a hotel and atm they are saying no refund UNLESS the country is locked down. If they'd said yes, I'd be more inclined to re-book with them than I am right now. I've had a couple of emails from hotel chains I use saying they are allowing changes and cancellations even on prepaid bookings. Of course I've got travel insurance, but again I don't think it will cover the hotel UNLESS the country is locked down. 

tekton23

Hi Sue,
Thank-you for your reply, it is funny as we are quite far down the route of developing online classes, so it is looking likely that this will be the push needed to launch a little earlier.
If there is governement advice to shut classes, then of course we'd follow it. 
My dilemna is what to do with the 2-3 out of every class that are currently cancelling. My policy is a strict no refund, if notified less than 72 hours before the class. I have just had 4 cancellations for tomorrow's class, so that's less than 24 hours away and I have bought ingredients for all of these people.

Should I still be strict and give no refund? Or 50/50? If everyone cancelled I could just reschedule in a few weeks/months. The issue now is that I run my classes tomorrow at half full, then again for those cancellations that have just come in, at a loss.
I'd love to know what others are doing?

T23

Savvy_Sue

Well, only you can work this out (and I'm afraid I have no idea what other small businesses might be doing). 

However, you have clearly incurred costs for tomorrow's classes, so I would definitely NOT give a full refund.