Stats Of The Week
The State Of The Industry
While the grocery industry continues to see year-over-year dollar growth surpassing previous growth rates, last month they experienced a decline in sales while restaurants experienced an increase. The U.S. restaurant industry saw its fourth consecutive month of sales acceleration in August, with sales up 3.7%, according to data from M Science, a data analytics firm. Meanwhile, major grocery chains saw their sales drop 7% from July. The grocery stores that were most impacted by a deceleration were Smart & Final, Stop & Shop, and Food Lion. The online sector of the grocery industry also saw month-over-month deceleration in its August sales, while the natural and organic subsector saw relative sales growth.
Dine-In Traffic Increases But Off-Premise Popularity Remains
As more cities and states increase dine-in capacities, more customers are visiting restaurants in-person. Less than 25% of restaurants in August were under restrictions for on-premise dining, according to new data from The NPD Group. Even as consumers show considerable interest in returning to in-person dining, research from Technomic emailed to Restaurant Dive shows customers feel more comfortable supporting restaurants through off-premise channels. 68% of customers have visited drive-thrus, 63% have ordered take out, 48% have ordered curbside pickup, and 45% have ordered through third-party delivery or ordered delivery directly through a restaurant. If a preference for off-premise options continues through fall and winter, it may be a positive option for restaurants that can no longer offer outdoor dining when the weather gets colder.
What’s Trending
Proposed Relief Bill Includes Funding For Independents
On Monday, House Democrats introduced an updated version of the HEROES Act which puts $2.2 trillion towards increased unemployment benefits and $120 billion in grants for restaurants, bars, and food trucks. The grants exclude chains and are geared for independent restaurants in underrepresented communities with establishments operated by women and minorities. The Independent Restaurant Coalition asked for Congress’s support on the Act which would also include another round of PPP loans for small businesses that have been hit the hardest.
“The revised version of the HEROES Act is the best plan Congress has put forward to protect the livelihoods of the 11 million people employed by independent restaurants across the country,” the coalition said in a statement released late Monday.
FL Lifts All COVID-19 Restrictions For Businesses
Last Friday, Florida Governor Ron DeSantis enacted an executive order which removed restrictions on businesses statewide that were imposed to control the spread of COVID-19. This includes restaurants, which can now operate at full capacity, and bars, which were previously closed but can now open. Prior to the order, parts of Florida were in Phase 2 with foodservice establishments being able to open their dining rooms and operate at 50%. Local governments can place their own restrictions as long as they don’t limit restaurant seating to less than 50% and if they’re justified for health or economic concerns. The mandate will also stop cities and counties from fining people for not wearing face masks. Florida became a hotspot during the summer and even though positivity rates are down the state still has a positivity rate between 5-7%.
"Every business has the right to operate," DeSantis said at a news conference Friday. "Some of the locals can do reasonable regulations. But you can't just say no."
Outdoor Dining Is Here To Stay In NYC
New York City’s outdoor dining program was set to expire October 31, but NYC Mayor Bill de Blasio said on Friday during WNYC's The Brian Lehrer Show that the program will become permanent and year-round. More than 10,000 restaurants in the city have incorporated outdoor seating resulting in saving about 90,000 jobs, according to the mayor’s office. The city’s Open Restaurants program, which allows city blocks to entirely close off traffic to allow dining in the street, will also be made permanent. For the colder months ahead, restaurants will have the option to incorporate propane or natural gas heaters to their outdoor spaces. They may also fully enclose their outdoor space to provide more heating but must adhere to indoor dining restrictions.
DC Helps Restaurants Prepare For Winter
With the arrival of colder temperatures and snowfall coming in the next few months, restaurants nationwide are outfitting their restaurants to weather through the winter. Washington, D.C.’s Office of Nightlife and Culture has launched a $4 million grant program to help restaurants and other retail businesses prepare their outdoor areas for winter. All independent and locally-owned businesses may apply, but non-local franchises are not eligible for grants. This program offers $6,000 to businesses with active sidewalk permits or private outdoor spaces. To be approved for this grant, each applicant must outline a plan for how they will utilize the money to winterize their establishment. The grants can be used towards tents, heaters, propane, furniture, advertising, and operational expenses for outdoor space.
NJ Introduces What Could Be The Toughest Ban On Plastic Products
With everyone turning to single-use products to help diminish the spread of COVID-19, many are questioning how these disposable products are affecting the planet. New Jersey lawmakers passed an initiative that would ban plastic products and paper bags in the state. The bill would ban film plastic bags and paper bags as an attempt to urge customers to use their own reusable bags. Also, polystyrene foam clamshell containers, plates, cups, food trays, and utensils would be banned. Plastic straws would only be available upon request at restaurants.
The bill is now awaiting the approval of NJ Governor Phil Murphey who has had mixed opinions on the topic
in the past. At the beginning of the pandemic, he signed a bill requiring restaurants and institutional
foodservice establishments to recycle food waste. However, he has vetoed other initiatives that would
charge for the use of non-recyclable bags as an effort to encourage customers to opt for reusable
bags.
Bright Spots In A COVID-19 World
Chef Cooks Up Casseroles For Those In Need
At the beginning of the pandemic, Chef Sunny Gerhart, owner of St. Roch Oysters and Bar in Raleigh, NC, began working with the Inter-Faith Food shuttle to help provide meals for food-insecure families. Since April, he’s contributed more than 50,000 casseroles with the help of his restaurant employees. He said to Spectrum Local News that for someone who is constantly surrounded by food, he never has to think about food insecurity and how people manage to feed their families during this unprecedented time.
“I’m happy to get to feed some people, I’m happy I get to employ some people, and I’m happy I get to keep the doors of the restaurant open,” Gerhart said to Spectrum Local News.
Discover Offers COVID Relief For Black-Owned Restaurants
The credit card company has launched its “Eat it Forward” program that grants financial assistance to Black-owned restaurants across the country. Discover made a $5 million promise to give qualifying restaurants $25,000 each to help rebound from the impact of the pandemic. The program works by users nominating their favorite restaurants on social media with the hashtag #eatitforward. The credit card company hopes that this program not only helps restaurants financially but helps by promoting their business online.
“COVID-19 has wreaked havoc on businesses across the United States, and we want to help effect positive change by offering financial support to Black-owned restaurants, a segment of the economy that has been disproportionately impacted during this pandemic,” said Julie Loeger, Discover Executive Vice President and President of U.S. Cards, in a press release.
Quote Of Hope
“Just to welcome people into your space, the feel of a busy restaurant. That feeling of walking someone through an experience, teaching a little bit about what you’re doing with your food, it’s just the best.” - Joe Flamm, owner of Rose Mary and winner of Top Chef season 15
