Stats Of The Week
The State Of The Industry
Will dine-in restrictions soon be lifted for restaurants? Georgia Governor Brian Kemp announced the state will reopen some businesses on Monday amid the coronavirus pandemic. Though the idea of restarting the state’s economy should be a sign of hope, some businesses are reluctant to open to the public in fear of the safety of their staff and customers. Many operators have stated they are not ready to fully open due to the lack of preparation time and protective equipment that meets the state’s guidelines. Some small business owners in the state have chosen to take matters into their own hands and not open dine-in services to protect themselves and reduce the spread of the virus. Currently, more than 97% of the U.S. population is under a stay-at-home or shelter-in-place order. Other states are planning to reopen some facilities in a matter of a few days or weeks: South Carolina - April 21, Alaska - April 24, Texas - April 24, Colorado - April 27, Tennesse - May 1, and Ohio - May 2.
According to a survey conducted by the James Beard Foundation, on average, restaurants have laid off 91% of their hourly workforce and nearly 70% of their salaried employees as of April 13. More than 38% of restaurants reported this month that they have closed temporarily or potentially permanently and over 77% of respondents reported at least a 50% reduction in sales. About two-thirds of restaurants are uncertain that take out or delivery can sustain their business until they fully reopen.
RW Poll Results
This week we wanted to hear from our social media followers about their thoughts on the Paycheck Protection Program (PPP). 96% of Restaurantware’s followers voted that small businesses should be prioritized for PPP loans. 95% of respondents agree Shake Shack did the right thing by returning their $10 million PPP loan while 88% say other large businesses should follow suit and return their loans. When asked if followers had received their PPP loan money, 82% responded “no”.
What’s Trending
PPP Loans Not Living Up To Their Promises
Over the past week, there has been an increased backlash in the way PPP loans have been distributed by the Small Business Administration (SBA). The SBA ran out of funding last week, and this week we found out why. A large portion of their funding went to chain restaurants, hotel groups, and publicly traded companies, rather than independent businesses. Shake Shack has been praised for returning their $10 million loan because they expect to raise $75 million from investors by selling shares. President Donald Trump and Secretary of the Treasury Steven Mnuchin have encouraged large companies to return their PPP loans and have stated that they are glad to see companies like Shake Shack doing so. This emergency program was intended to help small businesses pay workers and keep their operations running during the coronavirus pandemic. As of now, businesses are calling for the SBA to increase funding to the program and to distribute funds to those that need it most: small, local businesses.
Restarting The Economy Starts With Reactivating Restaurants
The White House Coronavirus Task Force has created a three-phase process for reopening the economy with safety checkpoints before each phase. Dining rooms are specifically mentioned in each phase to allow restaurants to gradually increase the amount of dine-in customers they can serve at a time. Phase one states that dining room operations should follow strict physical social distancing protocols. The guidelines include keeping dine-in parties at least 6 feet apart and prohibiting gatherings of more than 10 people. In phase two, the capacity rises to 50 people with social distancing measures being relaxed to moderate protocols that have yet to be clarified on specific standards. Phase three is still being created with no knowledge yet of the next capacity cap and only limited social distancing protocols.
CEO Gives Up Salary To Keep Staff
Bloomin’ Brands has achieved what seems to be impossible to avoid during this pandemic - the company hasn’t laid off or furloughed any employees as a result of the crisis. The parent company of Outback, Bonefish Grill, Carrabba’s, and Fleming’s employs more than 90,000 people. Earlier this month, CEO David Deno announced he would forgo his base salary to aid employees while the board of directors suspended cash retainers as well. Over the past few weeks, the company has provided relief pay and free meals for employees impacted by dining room closures.
Curbside Service Is Here To Stay
The COVID-19 crisis has forced chains and independents to consider dusting off old curbside strategies and implementing them now to increase their profits. The concept of allowing customers to pick up their meals without getting out of their cars is appealing to many during this time of social distancing. Many mom and pops have added curbside to their take out services and have seen much success. Even large chains, such as Shake Shack and KFC, are now offering curbside pickup. These services are also going beyond just the foodservice industry and are taking off with grocers, department stores, and other retailers.
Chefs Show Their Skills Through Social Media
In this day and age of social distancing, chefs are turning to social media to stay engaged with their audience. If you’re on at the right time, you can catch your favorite chefs cooking up some of their signature dishes and showing you how to make them at home. Massimo Bottura recently went on Instagram Live to show viewers how to make a meal of ribs, mashed potatoes, and radicchio with prosciutto. James Beard Nominee Brad Kilgore and his wife, Soraya Caraccioli-Kilgore, have created an Instagram series where they share recipes or host social gatherings on a daily basis. Sharing these personal videos provides chefs with an outlet to connect with the community and can help fundraise for their staff or other organizations.
Bright Spots In A COVID-19 World
McDonald’s Shows Thanks
McDonald’s restaurants are joining efforts to feed frontline workers by offering them the “Thank You Meal”. The program includes a free meal for healthcare workers, police officers, firefighters, and paramedics. The “Thank You Meal” is served in a Happy Meal box with a note of appreciation to thank essential workers for keeping communities safe and healthy.
Restaurants Offering More Than Food & Beverages
Small, local restaurants are using their sources to help out their communities. J5 Steakhouse in Spicewood, TX is delivering toilet paper, soap, and other essentials to the elderly and under-served in the neighborhood in an effort to give back while keeping their employees working. Olmstead in NYC reopened its doors as a free food bank to industry workers. They call vendors and fellow chefs to donate goods and volunteer their time. Celebrity chefs like Thomas Keller have come together with a law firm, Gauthier, Murphy & Houghtaling, LLC, to form the Business Interruption Group. Their mission is to help other restaurateurs save their businesses through payouts from insurance companies, which have been denying business payments.
Quote Of Hope
“Although this situation is challenging, we are looking forward to emerging as better and stronger. I am more convinced than ever of the important role that full-service restaurants will continue to play in the lives of our customers and our communities,” David Deno, CEO of Bloomin’ Brands, said.
