Restaurants Show Their Support
Amid recent protests, many restaurant owners are expressing their support of peaceful demonstrations shining a light on police brutality. Just as restaurants were planning to reopen after months of being closed due to COVID-19, many have now chosen to remain closed to keep their staff and customers safe during this unprecedented time.
Taking it a step further, restaurants are showing their solidarity of the movement by providing informative messages on social media, providing links for followers to donate to organizations, posting signs of support in their windows, and even closing to allow employees to attend the marches. The restaurant industry continues to stand together through the coronavirus crisis and now through nationwide protests, further proving that they are the heartbeat of the community.
“We are okay, but now is not about us. There is a bigger issue at hand here that we all need to pay attention to and listen. We see you, we hear you, and we stand with you. We have a lot to do to get through this storm, but please know we want to be a part to help bring this so badly needed change,” Kim Finch, owner of Double Wide Bar in Dallas, TX, said.
Stats Of The Week
State Of The Industry
Nearly two-thirds of publicly-traded restaurants are at risk of bankruptcy, according to a new study from consulting firm Aaron Allen & Associates reported by Bloomberg. Smaller companies like Potbelly, and dine-in restaurants, like Bloomin’ Brands and Brinker International, are at the highest risk of bankruptcy. The study analyzed risk scores for 46 companies using data including capital and earnings. They found that 65% of those companies, which represent about 73,000 U.S. restaurant locations and $85 billion in annual sales, fall within the “distress zone”. The consulting firm told Bloomberg that larger companies with strong balance sheets are more likely to survive and consolidate with smaller, weaker companies.
What’s Trending
Texas Restaurant Association Adds Vandalism To Relief Fund
The Texas Restaurant Association is expanding its TX Restaurant Relief Fund to include vandalism damage in the wake of recent protests. The relief fund was originally created to raise money to help operators survive through coronavirus-related issues. A number of foodservice establishments were damaged in the wake of protests across the country this past weekend.
“This violence is another huge setback for restaurants, bars, and other foodservice businesses that are still suffering crippling losses due to the COVID-19 pandemic,” the Texas Restaurant Association said in a media release.
The House Passes Bill To Extend PPP Loans
The House approved, 417 to 1, the Paycheck Protection Flexibility Act that would rewrite some of the rules limiting how businesses can use PPP funds. The bill would extend the time restaurants would have to spend the funds from eight weeks to 24 weeks to give restaurants more time to get past the transition period of limited-capacity reopenings. The Flexibility Act would also allow operators to spend up to 40% of PPP loan funding on non-payroll expenses, such as paying rent or utilities and purchasing protective clothing for staff. The bill was a bipartisan effort that was approved by the House and now faces uncertainty in the Senate.
The Key To Successfully Reopen Your Restaurant
The best way for restaurants to regain their customer’s trust is through transparent marketing. Restaurants that clearly state their new safety operations and sanitation procedures during the COVID-19 pandemic on social media or on their website will reap the benefits from customers. The way restaurants evolve their messaging and marketing strategies should make customers aware of how operations are changing to adhere to social distancing and sanitation guidelines. This way customers can have an idea of what to expect when dining-in at your establishment.
“Restaurants need to remember that the principle by which they need to guide themselves in any tactic that they might employ is trust, customer trust,” Joel Staley, senior communications executive and media trainer at JCS Communication, told Restaurant Dive.
Outdoor Dining Becomes The New Dining-In
With full dine-in operations being weeks away for some states and cities, outdoor dining has become the current solution for restaurants to offer more seating. States like Minnesota, Maryland, Ohio, Illinois, Rhode Island, and others are either allowing full-service restaurants to offer al fresco dining only or are specifically encouraging restaurants to serve guests outdoors when they plan to reopen. Local governments across the country have relaxed rules on outdoor dining to allow for tables to be set up in parking lots or on public spaces such as sidewalks and streets. Though social distancing guidelines will still apply, this gives operators a chance to serve more guests and increase their sales.
Customers Love A Good Deal
As we’ve seen throughout the past few months, family-style meals have skyrocketed in popularity during
the pandemic. Restaurants were quick to transition their menus to include large meals at a reasonable
price for customers to enjoy while sheltering at home. Even quick-service restaurants with drive-thrus
began offering value meals and deals. A study done by Technomic found that as a result of the economic
crisis, budget-friendly to-go meals were a major draw for customers. Participants in the study ranked
Texas Roadhouse’s family value ribs priced at $39.99 as the highest draw and noted that the word “value”
in the name as a major selling point. In terms of value meals, respondents ranked Burger King’s 8-piece
chicken nuggets priced at $1 as the best value and found the portion size satisfactory.
Bright Spots In A COVID-19 World
Restaurants Help Raise Money For Food Banks
Restaurants around the country are participating in a nationwide fundraiser that will provide meals to local food banks. The Takeout for Good fundraising event is facilitated by GroupRaise and aims to help restaurants stay afloat while raising money for families in need during the COVID-19 crisis. The fundraiser works by customers using the GroupRaise platform to RSVP with the restaurant of their choosing, then they order their food on June 2, and the restaurants will donate 15%- 25% of the proceeds from those orders to local food banks.
Restaurants Show Excitement To Reopen
As many states are loosening stay-at-home orders, foodservice establishments are able to open their dine-in services for the first time since mid-March. Restaurants shared their excitement to see customers come out for a bite and show their support. Jolene Chatfield, general manager of Olde Brick House in St. Cloud, MN, said to the SC Times that her staff is super pumped to reopen. “We kind of look at it as opening up a brand new restaurant almost in a sense because it's nothing like we've ever done before, so it's definitely new."
Martin Vazquez, owner of La Siesta Restaurante in Winthrop, MA, said to MSN that his loyal customers have been supporting him through take out, but he is thrilled to have customers come in for outdoor dining. “It will be a big help and it will be great for our customers to start coming in little by little.”
Quote Of Hope
“I believe that our community is going to gel and we’re going to be better on the other side of this - more efficient, more communicative, more of a united voice.” - Erick Williams, chef and owner of Virtue in Chicago, IL
