Stats Of The Week
The State Of The Industry
According to data released by Black Box Intelligence, 2 out of 3 restaurant operators believe the restaurant environment will worsen in the next 3 months. Though many operators are investing in safety measures, like installing plexiglass barriers and initiating frequent sanitation practices, dine-in sales at full-service restaurants are trending downward as most customers favor off-premise business. 96% of operators are requiring all restaurant staff to wear face masks, 86% have implemented social distancing by removing select tables, and 71% of operators are taking employees’ temperatures before each shift. Safety is just as important to operators as it is to customers that are wary of dining at any foodservice establishment.
Third-Party Delivery Helps Restaurants Stay Afloat
Third-party delivery saw the most rapid increase in restaurant sales, as a percentage of overall sales, since the beginning of the coronavirus pandemic and has doubled during the crisis, according to a survey of more than 400 restaurants by Uber Eats and Technomic. 81% of respondents said third-party delivery helped them avoid laying off employees while 79% said it helped them avoid reducing worker hours. 84% of operators said that delivery platforms have allowed them to access diners they would not have been able to reach otherwise and 92% said they plan to continue working with third-party delivery services post-pandemic.
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What’s Trending
Restaurantware’s Ballin’
This year’s basketball season started just like any other but was abruptly paused in March due to COVID-19. In an effort to resume the 2019-20 basketball season in the next few weeks, the NBA has initiated what has become known as the “NBA Bubble” where players and coaches quarantine before and during the season at Walt Disney World campus in Orlando, FL. As players are expected to eat, practice, and sleep in these facilities to prevent them from contracting and spreading COVID-19, the NBA has taken an eco-friendly initiative with their single-use products and chosen Restaurantware take out containers to serve meals.
The NBA is utilizing our Pulp Tek collection of containers made from sugarcane, also known as bagasse, that is commercially compostable and biodegradable. They’re also using our Bio Tek collection of soup containers which are crafted from sturdy paper and feature a grease-resistant lining to prevent messes. The NBA’s commitment to using eco-friendly single-use products shows their efforts to keep players safe without harming the earth or sacrificing food presentation.
NRA Recommends Prioritizing Restaurants For Vaccinations
The National Restaurant Association is calling for the U.S. government to prioritize the testing and vaccination of food supply chain workers and restaurant employees behind healthcare workers, first responders, and vulnerable populations. The NRA released a new plan called the Blueprint For Restaurant Revival that aims to help restaurant owners and their employees on how to survive in the short-term and how to recover in the long-term. Many of their recommendations reiterate similar ideas from their April guidelines, but they’ve added a new section for testing and vaccination. The association has taken into account many restaurants that have reopened and were forced to close again because their employees contracted COVID-19.
Domino’s Proves To Be The Exception During The Pandemic
While many operators have been experiencing devastating blows to sales during the COVID-19 crisis, Domino’s reported in an earnings release that their U.S. same-store sales increased 16.1% during the second quarter of 2020 compared to last year’s sales of 3% during the same time period. Jeff Lawrence, Domino’s CFO, credited their same-store sales growth in the U.S. to ticket and order growth during an earnings call with investors. The company saw accelerated levels of demand along with higher order counts and larger order sizes during the middle of Q2 through the end of the quarter.
"The second quarter marked a rather unprecedented acceleration for food delivery in the U.S. and we were certainly no exception. [We had] our 37th consecutive quarter and strongest in that nine-plus year run for same-store sales, with evidence of this tailwind in delivery," Ritch Allison, Domino's CEO, said during the call.
Dunkin’ Increases Sanitation To Alleviate Customer Concerns
Dunkin’ and its sister brand, Baskin-Robbins, have joined the P&G Professional CleanPLUS Experience Program to ensure their restaurants are properly cleaned and sanitized in regions where dine-in operations are allowed. The cleaning program includes well-known brands like Dawn Professional, Comet, Spic and Span, and Safeguard to help consumers feel safe when returning to in-person dining. Participating locations will show co-branded stickers on the front doors, drive-thru windows, and restrooms to ensure customers are aware of their enhanced sanitation initiative. During the pandemic, co-branding partnerships between service industries and consumer cleaning brands have become more popular as a way to help gain consumer trust in struggling industries.
Outdoor Dining Is On The Rise & So Is The Summer Heat
Amid the coronavirus pandemic and dining room closures, restaurant owners are utilizing outdoor dining to bring in some much-need revenue to stay afloat. While restaurant employees welcome the added business, the sweltering summer heat is not making their job easy. Candis Larsen, general manager at Steamers Seafood Cafe in Tacoma, WA, told Restaurant Business that working outside during the summer while wearing a mask and following proper social distancing and sanitation protocols is the most challenging experience in her three decades of being in the restaurant industry.
Some operators are hearing the concerns of exhausted employees and have implemented changes to provide some relief. Moonrise Izakaya in NYC has installed turbo fans at doors, walkways, each POS station, and bar. Workers are also given a quart container to refill each shift with ice water. “Not only are we not used to operating in the heat with masks and gloves, but we aren’t used to walking the extra 100 yards, so it’s a lot of change to get used to,” Jake Poznak, co-owner and managing partner of Moonrise Izakaya, said to Restaurant Business.
Bright Spots In A COVID-19 World
Teen-Run Restaurant Organizes A Drive-Thru Fundraiser
That’s My Dog Jr. is a restaurant in Montgomery, AL that is a part of the That’s My Child organization which helps young adults find opportunities and build a future in an area of the city that experiences generational poverty. When the coronavirus pandemic became prevalent in March, most of their business stopped. The restaurant’s employees fought to keep their business going the best way they know how: with hard work and hot dogs.
On National Hot Dog Day, July 22, the restaurant hosted a drive-thru fundraiser and gave customers who donated any amount a hot dog and lemonade. Those who gave at least $25 got a “donor dog” shirt along with their food, and those who gave at least $100 got a shirt and a “doggie tag” good for five free meals in the future. Over 150 teens have gotten jobs after going through this program and organizers hope that the fundraiser will help them continue on with their mission.
Local Chef Takes A Chance On His Dream
Andrew Darneille always competed in barbecue championships and won over 70 awards in 2019 alone. In 2017, he began making plans to open a brick-and-mortar restaurant called Smokecraft with the focus being on traditional barbecue with a modern twist. He and his partners found their dream space in Arlington, VA. Construction started in December 2019 with opening plans slated for Spring 2020, but then the pandemic hit. Their establishment was already halfway through construction with furniture, smokers, and other equipment scheduled to arrive before their original opening date.
Once construction was able to restart in April, Darneille planned to launch the restaurant with Phase 2 openings, but his suppliers and materials weren’t available. The restaurant also did not qualify for a PPP loan because never-opened restaurants were not eligible. Though the Smokecraft did not open as previously planned, Darneille is moving forward and adjusting his original menu items and honing in on what works best with prep time, limited supplies, and food delivery.
“We have great systems in place, a great location, great staff, and a great menu. Just like in a barbecue competition, adaptability is important to success. I have lots of experience adapting,” Darnielle said to Restaurant Business.
Quote Of Hope
“As a chef and restauranteur, your whole career is based on meeting up with the challenges and being able to pivot and make decisions on the fly. We’re just more resilient in what we go through in our restaurants.” - Doug Katz, chef and owner of Fire Food and Drink in Cleveland, OH
