Stats Of The Week
The State Of The Industry
Technomic released its “Top 500 Chain Restaurants Report” giving insight into what to expect for 2020. The initial forecast predicts overall sales to decrease by 12% to 17% this year. The report ranks each top chain by sales performance for the previous year. It remains uncertain the impact COVID-19 will have on sales performance, but Technomic predicts 2020 will be the most challenging year on record for Top 500 chain restaurants.
RW Poll Results
In this week’s poll on Restaurantware’s social media, we gauged how our followers feel about restaurants reopening amid states loosening social distancing orders. 84% of respondents shared that it’s too soon for states to lift in-person dining restrictions with 85% voting 2+ weeks is the appropriate time to start considering loosening restrictions. When asked if followers would feel comfortable going out to dine in-person, 79% said not yet. With each state deciding when it’s the best time for them to reopen, 72% of restaurant owners and workers said they are not ready to fully reopen anytime soon.
What’s Trending
Georgia’s Controversial Reopening
On Monday, April 27, restaurants across Georgia were allowed to reopen for dine-in services. Customers who chose to dine in were met with spread out tables, limited seating, hand sanitizer, and restaurant staff wearing masks. Many Georgia restaurants chose to not reopen but a few chain restaurants did, such as the popular Waffle House chains, amidst backlash from health officials. Georgia restaurants that opened in-person dining are required to follow 39 guidelines laid out by the state including a mandate that all employees wear masks, owners screen employees for signs of illness, and restrictions be enforced on the number of customers allowed inside at the same time.
Health officials and President Trump criticized Georgia Governor Brian Kemp’s decision to allow restaurants, gyms, barbershops, and tattoo parlors to reopen. “This is a dress rehearsal for the entire country,” Bo Peabody, a member of the Georgia Restaurant Association said to a local Atlanta TV station. “If this goes well, I think most restaurants in Atlanta will be open by the middle of May. If it doesn’t, then I think the whole country will be set back by a month or two. That’s the risk.”
Large Companies Return Their PPP Loans
Potbelly Corp. is the most recent chain to join other publicly traded companies in returning its funding from the Paycheck Protection Program (PPP). Shake Shack, Sweetgreen, Ruth’s Chris Hospitality, and J. Alexander’s Holdings Inc. are among those who faced criticism for receiving funding when many independents didn’t obtain any funds from the program. President Trump has recently signed a $484 billion relief bill that replenishes the PPP program. The Small Business Administration resumed accepting applications on Monday, April 27.
Seattle Caps Third-Party Delivery Fees
Seattle has made an emergency order to restrict third-party delivery fees at 15%. This decision follows a mandate San Francisco put in place in mid-April as an effort to reduce the financial burden restaurants face. Companies like Uber Eats, Grubhub, Postmates, and DoorDash charge large commission fees which add additional hardship to the already struggling restaurant industry. Other cities are predicted to follow suit as pressure increases from their local restaurants. The New York City Council will host a Zoom public hearing to discuss capping third-party delivery fees at 10%. In Los Angeles, a council member has also asked the city to draft an ordinance to cap restaurant fees at 15%. Chicago has proposed a 5% cap on third-party delivery fees, which would be the lowest in the country to date.
LA Lists Restaurants With COVID-19 Cases
The Los Angeles County Department of Public Health will soon begin listing restaurants with confirmed COVID-19 cases. This comes as a few local restaurants temporarily closed after there were positive COVID-19 cases among their staff. The county website already lists institutions including nursing facilities, jails, prisons, shelters, and treatment centers that have had at least one confirmed coronavirus case. It’s not yet clear how the policy will be implemented and for how long, but restaurants fear that being listed with COVID-19 cases will deter customers and damage their reputations.
Chipotle Creates Bowls To Help You Reach Your Goals
For a limited time, Chipotle is now offering a selection of lifestyle bowls to help customers combat
their pandemic junk food diet with meals inspired by wellness experts. The fast-casual chain noticed the
trend after reviewing the results of a survey about consumer eating habits. Chipotle joined forces with
YouGov to conduct this survey and found that 35% of Americans are struggling to maintain healthy
lifestyles amid stay-at-home mandates. They’ve created five healthy bowls with help from wellness
experts such as professional basketball trainer Chris Brickley, cycling instructor Cody Rigsby,
nutrition expert Dr. Mark Hyman, and fitness athletes Tia-Clair Toomey and Mat Fraser. The bowls, which
feature supergreens salad mix and other fresh vegetables, strive to help anyone looking to break their
current unhealthy diet.
Bright Spots In A COVID-19 World
Guy Fieri Launches Relief Fund For Laid-Off Workers
Guy Fieri and the President of the National Restaurant Association Educational Foundation Rob Gifford have teamed up to create Restaurant Relief America. The relief fund was created to aid restaurant workers that have been impacted by the coronavirus crisis. To date, it has raised almost $20 million with 100% of the money raised being distributed to laid off or furloughed restaurant workers. Struggling restaurant workers can apply for the grants and receive up to $500 as long as funding lasts.
California Starts Program Benefiting Seniors & Restaurants
California Governor Gavin Newsom has launched a program, in partnership with the Federal Emergency Management Agency (FEMA), called Restaurants Deliver: Home Meals for Seniors that will reimburse state restaurants for giving seniors three free nutritious meals a day. The program is designed for seniors that aren’t eligible for other assistance programs, have contracted COVID-19, been exposed to the virus, are immunocompromised, or earn roughly less than $75,000 a year. This opportunity helps independent restaurants rehire furloughed employees and ramp up operations. Restaurants will be reimbursed $16 for breakfast meals, $17 for lunch, and up to $28 for dinner.
Quote Of Hope
“I’ve spent the better part of the last 15 years traveling this great country meeting other folks who’ve dedicated their lives to this business and let me tell you something, they are the hardest working, most real deal workers you’ve ever met, the heartbeats of their communities.” Guy Fieri, American restauranteur and TV Host
