Stats Of The Week
The State Of The Industry
During the last three months, the restaurant industry has lost $120 billion in sales due to stay-at-home
orders and dining room closures, according to the National Restaurant Association. The restaurant market
experienced the most significant sales and job losses of any industry in Q1 with losses of $30 billion
in March, $50 billion in April, and $40 billion in May. In February, less than one month before
shelter-in-place orders and dine-in restrictions were enacted, the NRA released their State Of The
Industry report projecting the industry reaching a record high in sales of $899 billion for the year.
Now, the NRA predicts the restaurant industry will lose approximately $240 billion by the end of the
year.
RW Poll Results
This week we gauged how Restaurantware's Instagram followers were feeling about the industry as COVID-19 cases surge in many states. 79% of our followers believe restaurants should switch to single-use plates and utensils to help relieve customer concerns of potentially contracting and spreading the virus. 83% of our followers believe there will be another round of dine-in closures with 71% thinking restaurants will be more prepared for a second round of closures compared to the first time around. 71% of respondents said they have modified their menu to include new items geared towards take out, with 64% seeing an increase in to-go appetizers and desserts.
What’s Trending
How COVID-19 Has Changed Off-Premise Catering
Over the past few years, off-premise catering was a bright spot in tight-margin restaurants with the market reaching $64 billion in 2019, up from $58 billion two years earlier. That all changed when the COVID-19 crisis began and operators had to pivot their catering programs to accommodate the needs of their customers. 40% of operators were promoting their catering menus as family meals and leaning into repositioning existing packaging and food offerings. 27% had expanded their catering menus to include grocery items, according to Restaurant Business. The pandemic has brought about B2B opportunities between restaurants and non-profit organizations which fund catered meals delivered by local restaurants to healthcare professionals and food-insecure residents.
Restaurants Facing Reclosures As COVID-19 Surges
Despite many restaurants increasing their dine-in capacities around the country, a number of restaurants are being forced to close for a second time after employees and customers tested positive for COVID-19. In Jacksonville, FL, Lynch’s Irish Pub reclosed after more than a dozen customers had contracted coronavirus after visiting the establishment and seven employees tested positive. In Houston, TX, Yaga’s Cafe reclosed after multiple employees had tested positive for the virus. Many other restaurants, in states where coronavirus cases continue to rise, have opted to reclose in the past week after one or more employees contracted COVID-19. Operators say they are lacking official guidance on how to proceed so they are forced to create their own policies. The pandemic has already incredibly impacted the restaurant industry and it seems restaurants may have to prepare for a second round of closures.
Officials Create Stricter Safety Measures To Combat COVID-19
With positive COVID-19 cases spiking in many states, local government officials are now enforcing the safety measures required for businesses and will apply penalties to those that fail to comply. Instead of simply encouraging restaurant employees and customers to wear face coverings, officials are now making it a requirement. While some state governors hesitate to enact statewide restrictions, local mayors are stepping up to take actions to mandate safety precautions. For instance, Texas’s Dallas county followed the lead of other local counties and instituted a face mask requirement on Friday. Despite the state’s steep surge in coronavirus cases, Texas Governor Greg Abbott has left the decision to require masks to local officials.
Applying For PPP Loans Just Got Easier
The Treasury Department and Small Business Administration created new “borrower-friendly” applications for loan forgiveness under the Paycheck Protection Program. The streamlined application process comes as a result of the PPP Flexibility Act that was signed into law earlier this month. The newly released application is a 3-page EZ form that forgives all or a portion of your company’s loans. Applicants must meet certain requirements, but the EZ version is aimed to simplify the process by requiring fewer calculations and less documentation for eligible borrowers, according to the SBA. The PPP program was created to provide financial relief to small businesses during the coronavirus crisis and to date has approved 4.6 million PPP loans totaling $513 billion in funds.
Fewer Commuters Means Less Breakfast Traffic
Before COVID-19, the country was reveling in historically low unemployment which resulted in more people
commuting to work and seeking on-the-go breakfast options. Over the last five years, the breakfast and
morning snack category had grown 5% in quick-service chains such as Wendy’s, Dunkin’, Burger King, and
McDonald’s. After stay-at-home orders went into effect and more consumers lost their jobs, breakfast
became the easiest meal to cook from home. Breakfast has suffered the steepest transaction declines, The
NPD Group said in an email to Restaurant Dive. Morning sales declined by 18% during the week of June 7
among chain restaurants compared to the same period last year. Meanwhile, lunch sales were down 11% and
dinner was down 12%.
Bright Spots In A COVID-19 World
Mexican Restaurant Returns To Its Roots
Years after Julio and Micaela Jaimes made their way from Mexico to Los Angeles, they began selling traditional Mexican dishes from a parking lot to customers who were itching for a taste of home. After years of success, they opened a brick and mortar restaurant in June 2019. Within months, the restaurant struggled to draw in new customers and pay the bills, but the couple was hopeful 2020 would be a fresh start. Once news of COVID-19 hit, Julio realized it would be a bad year for restaurants and sold his establishment in March. Now, the Jaimes are back at their original food vending spot where they are happy to find that people are still enjoying their food. Before they were losing money trying to keep their brick and mortar afloat and now their parking lot concept is making about 70% of their normal value and is making just enough to cover their bills.
“Making barbacoa is hard work, but I have a lot of passion for this,” Julio said to Eater. “I love the process, and I love serving my barbacoa to our customers.”
Fans Bid To Talk With Chefs
Local Dallas chefs, writers, and restauranteurs are participating in the #AskChefsAnything fundraiser which allows people to bid on 30-minute video calls with the chef of their choosing. All proceeds are going to the Harvest Project Food Rescue which provides fresh produce to underserved communities in Dallas. The fundraiser aims to help immigrant workers in the foodservice industry who have been most affected by the pandemic. The bidding starts at $100 in which winners can ask anything from recipes to restaurant advice.
Quote Of Hope
“I can’t even put a finger on what’s going on right now, how vast and how complicated this is going to be, but one great thing about the restaurant industry is we adapt and overcome.” - Guy Fieri, American restauranteur and TV personality
